LyondellBasell Industries N.V. (LYB) has reported a 4.03 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $763 million, or $1.87 a share in the quarter, compared with $795 million, or $1.78 a share for the same period last year.
Revenue during the quarter grew 9.56 percent to $7,747 million from $7,071 million in the previous year period. Gross margin for the quarter contracted 96 basis points over the previous year period to 17.13 percent. Total expenses were 86.47 percent of quarterly revenues, up from 85.12 percent for the same period last year. That has resulted in a contraction of 135 basis points in operating margin to 13.53 percent.
Operating income for the quarter was $1,048 million, compared with $1,052 million in the previous year period.
During the fourth quarter, we completed the final step in our 2 billion pound North American ethylene expansion program, began site preparation for a 1.1 billion pound polyethylene plant, and advanced our new propylene oxide plant design. These projects coupled with the 2016 completion of seven major plant maintenance turnarounds, including four cracker turnarounds, position our company favorably for the coming years" said Bob Patel, LyondellBasell chief executive officer.
Operating cash flow falls marginally
LyondellBasell Industries N.V. has generated cash of $5,606 million from operating activities during the year, down 4.04 percent or $236 million, when compared with the last year.
The company has spent $2,297 million cash to meet investing activities during the year as against cash outgo of $1,051 million in the last year.
The company has spent $3,349 million cash to carry out financing activities during the year as against cash outgo of $4,850 million in the last year period.
Cash and cash equivalents stood at $875 million as on Dec. 31, 2016, down 5.30 percent or $49 million from $924 million on Dec. 31, 2015.
Working capital declines
LyondellBasell Industries N.V. has witnessed a decline in the working capital over the last year. It stood at $5,059 million as at Dec. 31, 2016, down 7 percent or $381 million from $5,440 million on Dec. 31, 2015. Current ratio was at 2.11 as on Dec. 31, 2016, down from 2.25 on Dec. 31, 2015.
Cash conversion cycle (CCC) has decreased to 26 days for the quarter from 31 days for the last year period. Days sales outstanding were almost stable at 17 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 27 days for the quarter compared with 32 days for the previous year period. At the same time, days payable outstanding was almost stable at 18 days for the quarter, when compared with the previous year period.
Debt moves up
LyondellBasell Industries N.V. has witnessed an increase in total debt over the last one year. It stood at $8,981 million as on Dec. 31, 2016, up 11.87 percent or $953 million from $8,028 million on Dec. 31, 2015. Total debt was 38.31 percent of total assets as on Dec. 31, 2016, compared with 35.28 percent on Dec. 31, 2015. Debt to equity ratio was at 1.48 as on Dec. 31, 2016, up from 1.22 as on Dec. 31, 2015.
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