LyondellBasell Industries N.V. (NYSE:LYB)

EBITDA

The EBITDA figures demonstrate a declining trend over the five-year period. Starting at $3,911 million in 2014, EBITDA decreased to $2,762 million by 2018. Notably, there was a sharp decline from 2015 to 2016, followed by relatively smaller fluctuations through 2017 and 2018.

Sales and Other Operating Revenues

Sales and other operating revenues exhibited a downward trend from 2014 to 2016, dropping significantly from $13,948 million to $8,722 million. This reduction was then partially reversed with increases in 2017 and 2018 to $10,004 million and $10,408 million, respectively. Despite this partial recovery, the revenue in 2018 remained below the 2014 level.

Segment Profit Margin

The segment profit margin shows variability across the reported periods. It peaked in 2015 at 36.74%, representing the highest margin in the timeframe analyzed. However, after 2015, the margin consistently decreased, falling from 31.97% in 2016 to 26.54% in 2018. This downward trend suggests diminishing profitability relative to sales over the latter years.

Overall Analysis

Overall, the segment exhibited a declining trend in profitability and earnings before interest, taxes, depreciation, and amortization over the period from 2014 to 2018. While revenue showed some recovery after a low in 2016, both profit margins and EBITDA continued to decrease, suggesting potential challenges in cost management, pricing pressure, or market conditions affecting profitability within the segment.

The analyzed segment data reveals fluctuating financial performance over the five-year period. The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) demonstrates an overall variable trend, starting at 1,366 million US dollars in 2014, peaking at 1,927 million in 2017, before decreasing significantly to 1,163 million in 2018. This pattern indicates a period of strong operational profitability followed by a contraction in the most recent year.

Sales and other operating revenues show a declining trajectory initially, falling from 15,203 million US dollars in 2014 to a low of 8,718 million in 2016. Subsequently, the revenues increase moderately to 10,838 million by 2018. Despite this recovery, the revenue figures in 2018 remain below those recorded at the start of the period, suggesting challenges in maintaining sales volume or pricing power during these years.

The segment profit margin presents a noteworthy upward trend from 8.99% in 2014 to 19.83% in 2016, implying improved operational efficiency and profitability despite declining sales. This margin stabilizes slightly lower at 18.86% in 2017 before dropping to 10.73% in 2018. The decline in 2018 could be linked to increased costs, lower pricing, or other operational issues impacting profitability despite higher revenues compared to 2016.

EBITDA Trend

A general increase up to 2017 followed by a sharp decline in 2018.

Sales and Operating Revenues Trend

Significant decrease between 2014 and 2016, with a partial rebound in 2017 and 2018.

Segment Profit Margin

Marked improvement until 2016, maintaining a high level in 2017, then decreasing in 2018.

In summary, the segment experienced operational profitability improvements amidst a challenging revenue environment through 2016 and 2017, but 2018 reflects a regression in profitability and EBITDA despite some recovery in sales. This suggests that external market conditions, cost structures, or competitive pressures might have adversely impacted the performance in the latest year analyzed.

The analysis of the annual data for the Intermediates and Derivatives segment reveals several notable trends and shifts over the five-year period ending in 2018.

EBITDA

The EBITDA values show some fluctuations over the years. Beginning at $1,459 million in 2014, EBITDA experienced a slight increase to $1,475 million in 2015, followed by a decline to $1,333 million in 2016. However, there was a recovery in 2017 with EBITDA rising again to $1,490 million, and a significant increase in 2018 to $2,011 million. This pattern suggests a period of volatility with a strong upward trend in the most recent year.

Sales and Other Operating Revenues

Sales and other operating revenues declined considerably from $10,130 million in 2014 to $7,772 million in 2015 and further decreased to $7,226 million in 2016. After these declines, there was a gradual recovery with revenues increasing to $8,472 million in 2017 and $9,588 million in 2018. Despite this recovery, the 2018 revenue figure remained below the 2014 peak, indicating partial restoration of sales levels over the period.

Segment Profit Margin

The segment profit margin increased from 14.4% in 2014 to 18.98% in 2015, reflecting improved profitability despite the drop in sales. It remained relatively stable with a slight decrease to 18.45% in 2016 and 17.59% in 2017 before climbing to a high of 20.97% in 2018. The rising margin trend in the later years indicates enhanced operational efficiency or improved pricing power during the recovery phase.

In summary, the segment experienced a phase of decline in revenue and EBITDA between 2014 and 2016, accompanied by an increase in profit margins, which could suggest cost control or pricing strategies mitigating the impact of lower sales. From 2017 onwards, there was a notable rebound in both sales and EBITDA, reaching their highest EBITDA and profit margin levels in 2018 during the observed period. This indicates a strong recovery and improved profitability in the most recent year reported.

EBITDA Trend

The EBITDA values, reported in US dollars millions, show a fluctuation over the three recorded years. Starting at 427 million in 2016, there was a slight increase to 438 million in 2017, followed by a decrease to 400 million in 2018. This indicates a peak in operational earnings in 2017 with a subsequent decline.

Sales and Other Operating Revenues Trend

Sales and other operating revenues exhibited consistent growth throughout the period. From 2601 million in 2016, revenues rose to 2922 million in 2017, and further increased to 4024 million in 2018. This reflects a strong upward trajectory in total revenues over the reported years.

Segment Profit Margin Analysis

The segment profit margin, expressed in percentage terms, declined steadily over the three years. Starting at 16.42% in 2016, it decreased to 14.99% in 2017 and further dropped to 9.94% in 2018. This implies diminishing profitability relative to sales despite growing revenues.

Overall Insights

Despite the increase in sales and operating revenues, the segment experienced a reduction in EBITDA in the final year and a notable decline in profit margins. The shrinking margin suggests rising costs or pricing pressures that offset revenue growth, leading to reduced earnings efficiency. The data indicates challenges in converting higher sales into proportionate profit levels during the observed period.

The annual data for the refining segment demonstrates notable fluctuations across the reported periods, reflecting variability in both profitability and revenue generation.

EBITDA

The EBITDA shows a general upward trend from 2014 through 2018, with an increase from 65 million USD in 2014 to a peak of 342 million USD in 2015, followed by a decline to 72 million USD in 2016, and then a significant rise to 157 million USD in 2017 and further to 167 million USD in 2018. This pattern indicates volatility but an overall improvement in earnings before interest, taxes, depreciation, and amortization over the period.

Sales and Other Operating Revenues

Sales revenues exhibit an initial sharp decline from 11,710 million USD in 2014 to 6,557 million USD in 2015, followed by continued decreases to 5,135 million USD in 2016. From 2016 onwards, there is a recovery trend, with sales increasing to 6,848 million USD in 2017 and further to 9,157 million USD in 2018. This demonstrates significant revenue contraction initially, with a gradual rebound in the latter years.

Segment Profit Margin (%)

The segment profit margin shows considerable variability, starting at a low of 0.56% in 2014, increasing sharply to 5.22% in 2015. Thereafter, it declines substantially to 1.4% in 2016, then recovers moderately to 2.29% in 2017 before a slight decrease to 1.82% in 2018. This suggests fluctuating profitability efficiency relative to sales over the years, with the highest margin achieved in 2015.

Overall, the data indicates that while the refining segment faced significant revenue pressures especially between 2014 and 2016, it managed to improve its profitability metrics, notably EBITDA, during the last two years. The sharp changes in profit margins and sales suggest exposure to volatile market conditions or operational factors affecting revenues and margins in the earlier years, with signs of stabilization and recovery evident in 2017 and 2018.

EBITDA

The EBITDA values exhibit an overall upward trend over the five-year period, starting at 232 million USD in 2014 and increasing to 328 million USD in 2018. While there is a slight dip from 262 million USD in 2016 to 223 million USD in 2017, the final year shows a significant recovery and the highest value in the series.

Sales and Other Operating Revenues

Sales and other operating revenues fluctuate throughout the period, beginning at 497 million USD in 2014 and ending higher at 583 million USD in 2018. The data reflects a decrease in revenues in 2015 and 2017, both years showing values below the initial year. However, the substantial increase in 2018 indicates a strong rebound and growth in sales.

Segment Profit Margin

The segment profit margin demonstrates consistent improvement over the observed years. Starting at 46.68% in 2014, the margin increases steadily, reaching 56.26% by 2018. Despite a minor decrease in 2017 to 49.56%, the margin recovers notably the following year, showing enhanced profitability relative to revenues.

Overall Insights

The data suggests a positive effect on profitability in the technology segment, particularly in the last year of the period analyzed. Both EBITDA and profit margin improve substantially, which may point to improved operational efficiency or favorable market conditions. Although sales and revenues experience some variation, the notable recovery and growth in 2018 likely contribute to the enhanced profit metrics.

EBITDA

The EBITDA showed a declining trend over the period from 2014 to 2018. Starting at $3,911 million in 2014, it decreased to $3,661 million in 2015, followed by a more pronounced drop to $2,788 million in 2016. Slight recovery was seen in 2017 with an EBITDA of $2,899 million, but it again declined to $2,762 million in 2018. Overall, EBITDA declined by approximately 29% from 2014 to 2018, indicating a reduction in earnings before interest, taxes, depreciation, and amortization in the segment.

Property, Plant and Equipment, Net

There was a consistent increase in net property, plant, and equipment values throughout the period. The amount rose from $3,260 million in 2014 to $3,660 million in 2015, increased further to $4,688 million in 2016, then $5,025 million in 2017, and reached $5,769 million by 2018. This steady upward trend suggests ongoing investment and asset base expansion in the segment.

Segment ROA (Return on Assets)

The segment return on assets demonstrated a significant downward trend during these years. It started at a very high level of 119.97% in 2014, declined to 100.03% in 2015, fell sharply to 59.47% in 2016, and continued marginally declining to 57.69% in 2017 and then to 47.88% in 2018. This decline indicates that despite increasing asset values, the efficiency in generating returns from those assets decreased substantially over the period.

Overall Insights

Despite notable investments in property, plant, and equipment leading to asset growth, the segment experienced a steady decline in EBITDA, pointing towards challenges in profitability or margin pressure. Concurrently, the segment's return on assets decreased markedly, implying reduced effectiveness in utilizing its expanded asset base to generate earnings. The combination of falling EBITDA and declining ROA alongside increasing asset investment could reflect operational difficulties, market conditions, or inefficiencies impacting this segment's financial performance.

EBITDA Trends

The EBITDA values demonstrate variability over the examined period. Initially, there was a notable increase from 1,366 million US dollars in 2014 to a peak of 1,927 million US dollars in 2017. However, the EBITDA declined significantly in 2018 to 1,163 million US dollars, which is below the initial 2014 level. This pattern indicates volatility in earnings before interest, taxes, depreciation, and amortization within the segment during these years.

Property, Plant, and Equipment, Net

The net value of property, plant, and equipment shows a gradual decrease over the five years. The figures declined steadily from 2,102 million US dollars in 2014 to 1,745 million US dollars in 2018. This downward trend suggests either depreciation outpacing capital expenditures or potential asset disposals within the segment.

Segment Return on Assets (ROA)

The segment ROA exhibited significant fluctuations. The return increased from 64.99% in 2014 to a high of 107.41% in 2017, highlighting improved profitability relative to assets during that period. However, in 2018, the ROA dropped sharply to 66.65%, nearly reverting to the 2014 level. This reduction signals a decline in asset efficiency or profitability in the final year observed.

Overall Insights

The data reflects a period of growth and peak performance around 2017, followed by a contraction in 2018 across key financial metrics. The decline in EBITDA and ROA in 2018, coupled with the consistent reduction in net property, plant, and equipment values, may indicate operational challenges or changing market conditions affecting asset utilization and profitability in the reportable segment.

The analysis of the financial data over the five-year period reveals several notable trends within the Intermediates and Derivatives segment.

EBITDA

The EBITDA figures exhibit moderate fluctuation between 2014 and 2017, starting at 1,459 million US dollars in 2014 and peaking slightly at 1,490 million in 2017. A dip is observed in 2016, where EBITDA declines to 1,333 million US dollars. However, a significant increase occurs in 2018, with EBITDA rising sharply to 2,011 million US dollars, representing a substantial improvement compared to previous years.

Property, Plant, and Equipment, Net

This asset category shows a consistent upward trajectory throughout the period. The value increases steadily from 2,121 million US dollars in 2014 to 2,663 million US dollars in 2018. This pattern suggests ongoing capital investments or asset acquisitions within the segment over the five years.

Segment Return on Assets (ROA)

The Segment ROA demonstrates some volatility between 2014 and 2017. It declines from a high of 68.79% in 2014 to 58.26% in 2016 before slightly recovering to 60.64% in 2017. In 2018, ROA rises markedly to 75.52%, indicating a significant enhancement in asset efficiency and profitability within the segment.

Overall, the data indicates that the segment experienced variable profitability from 2014 to 2017, followed by a pronounced improvement in 2018, supported by both rising EBITDA and enhanced asset returns. The steady growth in net property, plant, and equipment suggests that capital investment strategies may have played a role in this improved performance.

The financial data for the Advanced Polymer Solutions segment exhibits notable fluctuations and trends over the observed period, specifically from the end of 2016 to the end of 2018.

EBITDA (US$ in millions)

The EBITDA showed an initial increase from 427 million US dollars at the end of 2016 to 438 million in 2017, indicating a growth trajectory in operating earnings. However, in 2018, EBITDA declined to 400 million US dollars, suggesting a reduction in operating profitability following the previous year’s peak.

Property, Plant, and Equipment, Net (US$ in millions)

There was a significant increase in the net value of property, plant, and equipment, rising from 350 million US dollars in 2017 to 818 million in 2018. This sharp growth implies substantial capital investments were made during this period, likely aimed at expanding production capacity or upgrading existing assets.

Segment Return on Assets (ROA) (%)

The Segment ROA witnessed a considerable decline from 125.14% at the end of 2017 to 48.9% at the end of 2018. Despite remaining positive and relatively high, this drop indicates that asset efficiency in generating earnings deteriorated, potentially due to the increased asset base diluting returns or lower profitability as reflected in EBITDA.

In summary, the segment experienced a period of expanding capital assets coupled with a decrease in operating earnings and asset profitability during the most recent period. The company’s investments contributed to a substantial increase in asset base, but the returns on these assets diminished, suggesting a need for improved operational efficiency or market conditions adjustment going forward.

EBITDA

The EBITDA figures show significant fluctuation over the five-year period. Beginning at 65 million USD in 2014, EBITDA sharply increased to 342 million USD in 2015, demonstrating a large improvement in operating profitability. However, EBITDA then declined substantially to 72 million USD in 2016, followed by a gradual increase to 157 million USD in 2017 and 167 million USD in 2018. This pattern suggests volatile earnings performance within the refining segment, with a peak in 2015 and a recovery phase thereafter.

Property, Plant, and Equipment (net)

The net value of property, plant, and equipment exhibited a generally upward trend, rising from 1,036 million USD in 2014 to 1,216 million USD in 2018. There was a slight decrease in 2015 to 993 million USD, but the asset base expanded consistently from 2016 onwards. This trend may reflect ongoing investment or capital expenditures aimed at maintaining or upgrading fixed assets in the refining segment.

Segment Return on Assets (ROA)

Segment ROA displayed considerable variability during the timeframe. It started at 6.27% in 2014, surged to an exceptionally high 34.44% in 2015, but then dropped sharply to 6.75% in 2016. Subsequently, it rose again to 13.89% in 2017 and slightly decreased to 13.73% in 2018. This volatility indicates fluctuating asset efficiency and profitability, with 2015 representing an outlier year of exceptional returns, followed by a normalization to more moderate levels.

EBITDA Trends

The EBITDA figures exhibit a generally positive trend over the analyzed period, increasing from 232 million US dollars in 2014 to 328 million US dollars in 2018. Despite a slight dip in 2017 to 223 million US dollars, the overall trajectory points to growth, with a notable peak in the final year.

Property, Plant, and Equipment (Net) Trends

The net value of property, plant, and equipment shows fluctuations but an overall increase during the period. Starting at 237 million US dollars in 2014, it decreased to a low of 207 million in 2015 before gradually rising to 266 million by the end of 2018. This pattern suggests periodic investment activity followed by asset accumulation.

Segment Return on Assets (ROA) Trends

The Segment ROA percentage experienced significant variation, with a high of 123% in 2016, a notable decline to 92.53% in 2017, and a recovery to approximately 123.31% in 2018. This fluctuation indicates variability in asset productivity or profitability over the years, with 2017 representing a distinct outlier period of reduced efficiency.

Summary of Observations

Across the five-year span, the segment demonstrates resilience and growth in EBITDA, reflecting improved operational earnings despite a temporary setback in 2017. Investments in property, plant, and equipment appear to have recommenced following an initial reduction, culminating in expanded asset base by 2018. Correspondingly, the ROA indicates periods of strong asset utilization, interrupted by a temporary decline, suggesting potential operational challenges or market influences in 2017. Overall, the segment returns to higher performance levels by the final year analyzed.

Sales and other operating revenues

The sales and other operating revenues for the segment exhibited a downward trend from 2014 through 2016, declining from 13,948 million US dollars to 8,722 million US dollars. In the subsequent years, there was a modest recovery, with revenues increasing to 10,004 million in 2017 and further to 10,408 million in 2018, though the figures did not return to the initial 2014 levels.

Property, plant and equipment, net

The net value of property, plant, and equipment displayed consistent growth over the five-year period. Starting at 3,260 million US dollars in 2014, it increased steadily each year, reaching 5,769 million by the end of 2018. This upward trajectory suggests continuous investment in physical assets within the segment.

Segment asset turnover

The segment asset turnover ratio, which measures efficiency in utilizing assets to generate revenue, showed a clear decline from 4.28 in 2014 to 1.86 in 2016. It experienced a slight improvement to 1.99 in 2017 but decreased again to 1.8 in 2018. Overall, this indicates a decreasing efficiency in asset utilization, with the ability to generate sales from assets diminishing considerably compared to the initial year.

Summary of trends

Over the analyzed period, there is a notable decrease in revenues followed by a partial recovery, alongside consistent growth in asset base. The contrasting trends between increasing asset investments and declining asset turnover suggest a potential underutilization of assets or changing operational dynamics within the segment. The decline in asset turnover ratio alongside lower revenues implies that although the segment expanded its asset base, it did not proportionately translate into higher sales, indicating efficiency challenges during the period.

Sales and other operating revenues

There is a noticeable downward trend in sales and other operating revenues from 2014 to 2016, with a decline from US$15,203 million in 2014 to US$8,718 million in 2016. However, the revenues show a recovery from 2017 onward, increasing to US$10,218 million in 2017 and further to US$10,838 million in 2018.

Property, plant and equipment, net

The net value of property, plant, and equipment decreases steadily over the entire period. Starting at US$2,102 million in 2014, this figure declines to US$1,745 million by 2018, representing a reduction of approximately 17% over five years. This suggests a gradual divestment or depreciation of fixed assets in the segment.

Segment asset turnover

Segment asset turnover shows a pattern consistent with changes in sales and asset base efficiency. Initially, it declines significantly from 7.23 in 2014 to a low of 4.63 in 2016, reflecting decreased revenue generation relative to assets. Thereafter, turnover improves each year, reaching 6.21 in 2018, which aligns with the partial recovery in revenues and the steadily decreasing asset base.

Over the period from 2014 to 2018, there are several notable trends within the Intermediates and Derivatives segment. Sales and other operating revenues experienced a decline from 10,130 million US dollars in 2014 to 7,226 million in 2016. This was followed by a recovery phase from 2017 onward, where revenues rose to 8,472 million and further to 9,588 million by the end of 2018. Despite not reaching the 2014 level, the upward trajectory post-2016 indicates a rebound in sales.

Concurrently, the net property, plant and equipment showed a consistent increase throughout the five-year span. Beginning at 2,121 million US dollars in 2014, the net value increased steadily each year, finishing at 2,663 million in 2018. This upward trend suggests ongoing investments or capital expenditure in physical assets associated with the segment.

The segment asset turnover ratio, which measures sales efficiency relative to the assets employed, reflected a decline from 4.78 in 2014 to 3.16 in 2016. This reduction aligns with the initial drop in sales, indicating a reduced effectiveness in utilizing segment assets to generate revenue during this period. Subsequently, the ratio improved modestly to 3.6 by 2018, paralleling the recovery in sales but remaining below the initial 2014 level. This implies that although asset utilization improved in the later years, it did not fully return to earlier efficiency levels.

Overall, the data depicts a segment that faced operational challenges leading to diminished sales and asset turnover efficiency in the middle years but demonstrated recovery in revenues and moderate improvement in asset utilization toward the end of the period. Steady increases in property, plant and equipment suggest a focus on maintaining or expanding capacity despite fluctuating sales performance.

The analysis of the Advanced Polymer Solutions (APS) segment data reveals several notable trends over the reported periods.

Sales and other operating revenues

From 2016 to 2018, there is a clear upward trend in sales and other operating revenues. In 2016, revenues were recorded at 2,601 million US dollars, increasing to 2,922 million US dollars in 2017, and further rising significantly to 4,024 million US dollars in 2018. This progression indicates strong growth in the segment’s revenue-generating capacity.

Property, plant and equipment, net

The net value of property, plant, and equipment exhibits substantial growth between 2016 and 2018. In 2016, reported net assets stood at 350 million US dollars, more than doubling to 818 million US dollars by the end of 2018. This increase suggests considerable investment in fixed assets, potentially supporting expanded production capabilities or enhanced operational infrastructure.

Segment asset turnover

The segment asset turnover ratio declined from 8.35 in 2017 to 4.92 in 2018. Despite increased revenues and asset base, the turnover ratio’s reduction indicates that asset efficiency, measured as revenue generated per unit of asset, decreased over this period. This may imply that recent asset investments did not immediately translate into proportionate revenue increases, or that operational utilization of assets varied.

In summary, the APS segment experienced robust revenue growth and significant capital investment in assets over the phase analyzed. However, a decrease in asset turnover ratio highlights a potential reduction in operational efficiency or timing mismatch between asset expansion and revenue realization. Continuous monitoring of asset utilization alongside revenue growth will be critical to assessing the segment’s performance sustainability moving forward.

Sales and other operating revenues

The revenues displayed a notable decline from 2014 to 2016, decreasing from $11,710 million in 2014 to $5,135 million in 2016. Following this period, revenues showed a recovery trend, increasing to $6,848 million in 2017 and further to $9,157 million in 2018. Despite the rebound, the 2018 revenue remained below the 2014 figure, indicating a period of volatility and partial recovery within the segment.

Property, plant and equipment, net

The net value of property, plant, and equipment reflected a generally consistent upward trend across the years analyzed. Starting at $1,036 million in 2014, a slight dip occurred in 2015 to $993 million. However, from 2015 onwards, the asset base expanded steadily, reaching $1,216 million by the end of 2018. This suggests ongoing investment or capitalization of assets within the segment despite fluctuations in revenue.

Segment asset turnover

The segment asset turnover ratio experienced a marked decrease from 11.3 in 2014 to 4.81 in 2016, indicating a reduction in the efficiency of asset utilization to generate sales during this period. Thereafter, the ratio improved moderately, rising to 6.06 in 2017 and further to 7.53 in 2018. While the asset turnover showed improvement in the latter years, it did not return to the high efficiency levels observed in 2014, reflecting that asset usage became less effective relative to the earlier period.

The analysis of the annual data relating to the Technology segment reveals several notable trends over the five-year period from 2014 to 2018.

Sales and Other Operating Revenues

The segment's sales and other operating revenues initially decreased from US$497 million in 2014 to US$465 million in 2015, indicating a decline in revenue generation at the outset of the period. Revenues then experienced a slight recovery in 2016, rising to US$479 million, followed by a decrease in 2017 to US$450 million, representing the lowest revenue figure within the five years. However, 2018 saw a significant upswing to US$583 million, marking the highest revenue and a notable increase compared to previous years. This pattern suggests volatility in revenues with a strong positive turnaround by the end of the period.

Property, Plant and Equipment, Net

Net property, plant, and equipment (PP&E) values showed a general upward trend across the period. Beginning at US$237 million in 2014, the net PP&E decreased to US$207 million in 2015, the lowest point observed, before incrementally increasing to US$213 million in 2016. A marked rise occurred in 2017 to US$241 million, continuing further growth to US$266 million in 2018. This trend reflects a phased investment or capital expenditure strategy, with net asset values growing significantly after the initial dip.

Segment Asset Turnover

The segment asset turnover ratio, measuring efficiency in using assets to generate revenues, illustrates some variability. Starting at 2.1 in 2014, it improved to 2.25 for the two subsequent years (2015 and 2016), indicating enhanced utilization of assets. However, in 2017, the ratio experienced a decline to 1.87, suggesting a reduction in asset efficiency during that year. The ratio rebounded in 2018 to 2.19, close to initial levels, which aligns with the substantial revenue increase observed that year. These fluctuations suggest periods of varying operational efficiency in asset usage.

Overall, the Technology segment demonstrated resilience with a strong revenue rebound and increased capital investment towards the later years. Despite fluctuations in asset turnover, the segment appeared to manage assets effectively, ensuring higher revenues in the final period observed.

Capital Expenditures

The capital expenditures experienced fluctuations over the five-year period. Initially, there was a decrease from $912 million in 2014 to $668 million in 2015, followed by a significant increase to $1,370 million in 2016. Subsequently, capital expenditures declined sharply to $741 million in 2017 but rose again to $1,079 million in 2018. This pattern indicates variability in investment levels, with notable peaks in 2016 and 2018.

Depreciation and Amortization Expense

Depreciation and amortization expense exhibited a generally increasing trend throughout the period. Starting at $316 million in 2014, the expense rose steadily each year, reaching $442 million by 2018. This increase suggests a growing base of depreciable assets over time.

Segment Capital Expenditures to Depreciation Ratio

The ratio of capital expenditures to depreciation showed a variable pattern. The ratio decreased from 2.89 in 2014 to 1.89 in 2015, indicating lower investment relative to depreciation. It then sharply increased to 3.82 in 2016, reflecting a substantial increase in capital spending relative to asset depreciation. This was followed by a drop to 1.71 in 2017, the lowest ratio in the period, before rising again to 2.44 in 2018. These fluctuations suggest periods of aggressive asset investment interspersed with relative consolidation phases.

The analyzed segment exhibited notable fluctuations in capital expenditures and depreciation expenses over the five-year period. Capital expenditures initially experienced a minor decline from 191 million USD in 2014 to 186 million USD in 2015. However, this was followed by a substantial increase to 229 million USD in 2016. Subsequently, capital expenditures dropped to 163 million USD in 2017 before rising sharply to reach the highest level of 248 million USD in 2018.

In contrast, depreciation and amortization expenses generally showed a downward trend within the same timeframe. The expense decreased from 248 million USD in 2014 to 219 million USD in 2015 and further declined to 201 million USD in 2016. After a slight increase to 210 million USD in 2017, depreciation and amortization expenses marginally reduced to 208 million USD in 2018.

The ratio of segment capital expenditures to depreciation reveals variability indicative of shifting investment intensity relative to asset depreciation. Starting at 0.77 in 2014, the ratio rose to 0.85 in 2015 and peaked at 1.14 in 2016, suggesting capital expenditures exceeded depreciation expenses in that year. It then decreased to 0.78 in 2017, before reaching the highest ratio of 1.19 in 2018, demonstrating increased capital investments relative to asset depreciation during the latter years.

Overall, the segment illustrates cycles of investment activity with a tendency to increase capital spending in 2016 and 2018, while depreciation expenses gradually decreased. The elevated capital expenditure-to-depreciation ratios in 2016 and particularly in 2018 indicate periods where asset base expansion or refurbishment was prioritized over asset wear and consumption.

Capital Expenditures

Capital expenditures demonstrated variability over the five-year period. Starting at $241 million in 2014, expenditure increased notably to $441 million in 2015. Subsequently, there was a decline over the next two years, with investments amounting to $333 million in 2016 and $332 million in 2017. In 2018, capital expenditures rose again to $409 million, indicating renewed investment activity. Overall, the data reveals an uneven pattern with a significant peak in 2015 followed by stabilization and a moderate increase towards the end of the observed period.

Depreciation and Amortization Expense

The depreciation and amortization expense showed a steady upward trend throughout the period. Beginning at $225 million in 2014, the expense increased incrementally each year, reaching $287 million by the end of 2018. This consistent increase suggests an expanding asset base or changes in asset composition contributing to higher annual charges.

Segment Capital Expenditures to Depreciation Ratio

The ratio of segment capital expenditures to depreciation displayed fluctuations across the timeframe. The ratio started at 1.07 in 2014, indicating capital expenditures marginally exceeded depreciation. It peaked significantly in 2015 at 1.89, reflecting a substantial increase in investment relative to asset amortization. Thereafter, the ratio decreased to 1.24 in 2016 and 1.19 in 2017, suggesting capital spending declined relative to depreciation charges. In 2018, the ratio rose again to 1.43, implying capital expenditures once more outpaced depreciation by a considerable margin. This pattern highlights variability in capital investment intensity relative to the wear and consumption of assets.

The segment data for Advanced Polymer Solutions reveals notable trends in capital expenditures, depreciation and amortization expense, as well as the ratio of capital expenditures to depreciation over the period from 2016 to 2018.

Capital Expenditures

Capital expenditures show a continuous increase over the years, starting at US$38 million in 2016, rising to US$55 million in 2017, and further increasing to US$62 million in 2018. This upward trend indicates consistent investment in long-term assets within the segment.

Depreciation and Amortization Expense

Depreciation and amortization expense increased from US$31 million in 2016 to US$35 million in 2017, followed by a significant jump to US$69 million in 2018. The substantial rise in 2018 may reflect accelerated asset depreciation, acquisitions, or changes in asset base composition during that period.

Segment Capital Expenditures to Depreciation Ratio

The ratio of capital expenditures to depreciation started at 1.23 in 2016, increased to 1.57 in 2017, and then declined to 0.9 in 2018. The rise in the first two years suggests that new investments were adding more asset value relative to depreciation, while the fall in 2018 indicates that capital expenditures were less than the depreciation charge that year, potentially signaling a reduction in net asset growth or a shift in investment strategy.

Overall, the segment demonstrated growing capital expenditure until 2018, paired with a sharply increased depreciation expense in 2018, resulting in a lower capital expenditures to depreciation ratio that year. This pattern may suggest a transition phase in asset management or changes in operational strategy within the segment.

The Refining segment exhibits varying capital investment and depreciation trends over the reported periods. Capital expenditures increased significantly from 123 million US dollars in 2014 to 250 million US dollars in 2018, peaking in 2018. This suggests a strategic emphasis on investment in assets during the latter years.

Depreciation and amortization expense fluctuated across the years without a consistent upward or downward path. It rose from 169 million US dollars in 2014 to 196 million in 2015, then decreased to 163 million in 2016, followed by a gradual increase to 192 million by 2018. This pattern may indicate changes in the asset base age or composition, as well as varying impairment or amortization schedules.

The ratio of segment capital expenditures to depreciation reveals a significant increase in capital spending relative to depreciation starting in 2016. The ratio rose from 0.55 in 2015 to 1.37 in 2016 and remained above 1.0 in subsequent years, reaching 1.3 in 2018. This indicates that the segment consistently invested more in assets than the value of assets expensed through depreciation, suggesting asset growth or renewal during this period.

Overall, the trends imply a strategy focused on enhancing or expanding the asset base within the Refining segment, reflected in sustained capital expenditures exceeding depreciation expenses. The variability in depreciation expense may reflect asset aging profiles or operational adjustments over time.

Capital expenditures

The capital expenditures in the Technology segment show an overall increasing trend from 2014 to 2018. Starting at $25 million in 2014, the expenditures slightly decreased to $24 million in 2015, then increased to $36 million in 2016. A slight decline followed in 2017 to $32 million, but the value rose significantly in 2018 to $48 million, representing the highest amount in the five-year period.

Depreciation and amortization expense

Depreciation and amortization expense trend indicates a decline over the observed period. Beginning at $61 million in 2014, there was a substantial decrease to $46 million in 2015, followed by a further decline to $41 million in 2016. The expense remained relatively stable around $40 million in 2017 and increased slightly to $43 million in 2018. Overall, the expense has decreased compared to the initial year.

Segment capital expenditures to depreciation ratio

The ratio of capital expenditures to depreciation reveals a steady increase throughout the period. Starting from 0.41 in 2014, the ratio rose to 0.52 in 2015, then climbed significantly to 0.88 in 2016. There was a minor decrease to 0.80 in 2017, followed by an increase to 1.12 in 2018. This indicates that capital expenditures have grown relative to depreciation over time, surpassing depreciation expense in 2018.