Introduction

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description

by divya prakash

Transcript of Introduction

INTRODUCTIONLyondell Basell Industries is a NYSE listed multinational public limited Company which deals in Chemicals. Lyondell Basell its Headquarters is located in America & Europe with in Houston Texas & London, UK. Lyondell Basell is one of the giant company of the worlds which deals in plastics, chemical, and refining. Additionally, Lyondell Basell is a leading provider of technology licenses and a supplier of catalysts for polyolefin production. It is geographically diverse company with global manufacturing, supply, technical and commercial Infrastructure. Its products are used in different Countries of the World. The Company'sAmazing Chemistryis applied at 55 manufacturing sites located across five continents. This manufacturing network has enabled the Company to be a pacesetter in the Global Fortune 500 and to earn a listing in the S&P 500.[footnoteRef:1] Lyondell Basell is widely recognized within the industry with sales of $44 billion.* It is one of the largest and most admired global chemical companies. Lyondell Basell is listed on the New York Stock Exchange as LYB. Now around the World and Chemisphere, Lyondell Basell leads the way in petrochemical safety, product innovation, environmental stewardship and performance. [1: http://www.lyondellbasell.com/Aboutus/CompanyOverview/*Based on 2013 Revenues]

Global Capacity PositionsPolypropylene1st

Polypropylene Compounds1st

Oxygenated Fuels1st

Propylene Oxide2nd

Polyolefins Licensing3rd

Polyethylene5th

Ethylene5th

Propylene5th

Fact sheet of Lyondell Basell One of the largest plastics, chemical and refining companies. Annual Revenues of $ 44 billions 55 manufacturing sites in 18 countries on five continents.

GLOBAL PRESENCE OF LYONDELL BASELL

HISTORY OF LYONDELL BASELL

The Formation of Lyondell basell was held in Dec 2007 by the acquisition of Lyondell Chemical Company byBasell Polyolefinfor the amount of $12.7 billion. Earlier Lyondell Basell was listed on the New York Stock Exchange on October 14, 2010. Lyondell was delisted from the New York Stock Exchange after the acquisition.Best Stocks for Fat Dividends And Huge BuybacksLyondellBasell Industries: 16.0% total yield

Ticker: LYBSector: MaterialsMarket Cap: $13 billionBuyback yield: 20.3%Dividend yield: 1.9%Description: Lyondell Basell is a multinational chemical company based in Houston, Texas.Source: Goldman Sachs[footnoteRef:2] [2: http://uk.businessinsider.com/goldman-stocks-total-cash-return-to-shareholders-2014-11?r=US#lyondellbasell-industries-160-total-yield-6]

Ratio Analysis

The financial ratios of the Lyondell basell shows the financial position of last three years that is from 2014-2012. The ratios analysis include liquidity ratio, P/E ratioLiquidity Ratio

1.Current RatioCurrent Ratio

Dec 2014Dec2013Dec 2012

Current Asset116452.14 14599 2.65122862.41

Current Liabilities5437 55105096

(USD $ in millions)Current Ratio= Current Assets/Current Liabilities

2.Quick RatioQuick Ratio

2014 2013 2012

Cash and Cash Equivalents 1031 4550 2732

Investment short term 1593 - -

Account receivable 3448 4030 3904

Total Quick Assets6,0748,4906,641

Current Liabilities543755105096

Quick Ratio1.121.541.30

(USD $ in millions)

Quick Ratio= Total Quick asset/current Liabilities

3. Cash RatioCash Ratio

2014 20132012

Cash and Cash Equivalents 1031 4550 2732

Investment Securities 2,128 _ _

Total Cash Assets 2626 4460 2737

Current Liabilities 5437 5510 5096

Cash Ratio0.480.81 0.54

(USD $ in millions)

Cash Ratio= Total cash assets/current liabilities

Apart from These Data calculations I have calculated the other the other Financial Ratios and Statistical data to provide the financial health of the company from the Last year Annual Reports.

REVENUE / EARNINGS PER SHAREYear Dec 2014Dec 2013Dec 2012

Revenue456084406245352

EPS7.996.754.92

Dividend2.127.1

[footnoteRef:3] [3: http://www.nasdaq.com/symbol/lyb/eps-forecast]

BUY BACKS IN S & P 500 COMPANIES 2014Buy backs of shares is referred to as buyback in which companies are allowed to repurchase their own stocks outstanding on the market. The main reason behind this buybacks could be the number of shared held by the public in market will be returned to the company so that earnings per share could increase even if the total earnings be the same. Generally buybacks can be a signal for companies to start thinking about their stocks are undervalued.The way for Companies to return cash to shareholders is stock buybacks, but soon in near future it will decrease. The sectoral breakdown in the S& P 500 list is in Fig[footnoteRef:4] [4: http://us.spindices.com/indices/equity/sp-500]

S&P 500 2014 Buybacks Post 16.3% IncreaseAccording to S & P indices shows that S&P 500* fourth quarter buybacks of stocks in 2014 or repurchase of share has reduced to 8.7% to $132.6 billion which is less than the third quarter of $145.2 billion which was spent on shares repurchases of the year 2014 .As per investment researcher Howard Silver blatt, Senior Index Analyst at S&P Dow Jones Indices said Share count reduction continues to be the market takeaway,According to Mr. Silver blatt total shareholder returns through regular cash dividends, and also buybacks continues to increase and set records. From the sources of S&P indices year 2014 dividends & buybacks combined expenditures reached to a new record high level of $903.7 billion up from the $787.4 billion spent in the year 2013While the $350.4 billion in dividends for the year set a record, the $553.3 billion in buybacks, which represents 61.2% of the total shareholder return, failed to reach the 2007 buyback bonanza heyday high of $589.1 billion, The total turnout trend has been strong and increasing based on the recent .bank declarations 2015 may easily become another record year of dividends, as its fifth consecutive double digit gain and according to market trends this year also may be year of records for buybacks and dividends.BUY BACKS IN 2014 SECTORWISEYear 2014 has been a year of dividends and buybacks. On a sector basis the Information technology sector has continued to be dominated from the rest of the sectors. The percentage of quarter 4 of 2014 buybacks declined to 24.2% from its last quarter of 29.6%. The decline was of $ 10.9 billion which was due to Apple purchase was $5 billion in fourth quarter from the purchases in the third quarter was $ 17 billion

http://www.nasdaq.com/symbol/lyb/stock-reporthttp://www.lyondellbasell.com/InvestorRelations/FinancialReporting/AnnualReports/http://www.nasdaq.com/symbol/lyb/revenue-epshttp://financials.morningstar.com/ratios/r.html?t=LYB&region=usa&culture=en-UShttp://markets.ft.com/research//Markets/Tearsheets/Financials?s=LYB:NYQ&subview=IncomeStatement&period=ahttps://www.stock-analysis-on.net/NYSE/Company/LyondellBasell-Industries-NV/Ratios/Short-term-Operating-Activityhttp://www.reuters.com/finance/stocks/financialHighlights?symbol=LYBhttp://uk.businessinsider.com/goldman-stocks-total-cash-return-to-shareholders-2014-11?r=US#lyondellbasell-industries-160-total-yield-6

Sheet1Profitability2014Leverage2014Net Inc/Comm Equity1.63Total Liab/Total Assets0.66Net Inc/Total Assets0.17Total Liab/Inv Cap0.86Net Inc/Inv Cap0.23Total Liab/Comm Equity6.23Pretax Inc/Net Sales0.13Interest Coverage Ratio17.23Net Inc/Net Sales0.09Curr Debt/Equity0.04Cash Flow/Net Sales0.13LTD/Equity0.81SG&A/NetSales0.02Total Debt/Equity0.85Asset UtilizationLiquidityNet Receivables Turnover12.2Quick Ratio1.31Inventory Turnover7.95Current Ratio2.14Inventory Day Sales0.02Net Rec/Curr Assets0.3Net Sales/Work Cap7.35Inv/Curr Assets0.39Net Sales/PP&E5.21