special report

top 100 CHEMICAL COMPANIES

Phil Arthur

Price falls F
will beacham barcelona

or many chemical companies 2015

was a year when collapsing oil and
chemical prices impacted revenues

hit regions
and profits.
In Europe, global leader BASF saw sales, op-
erating and net profits dive as its oil and gas
business declined. But it pushed on with ca-
pacity expansions in Asia and Latin America.
Middle East companies also suffered from
softening chemical prices. In North America,
only coatings groups managed to achieve flat
As the global economy struggled and oil prices dove, to slightly improved sales, while many chem-
companies turned to M&A and new projects to fuel growth ical groups suffered double-digit declines. ■

24 | ICIS Chemical Business | 12-18 September 2016 www.icis.com

 special report TOP 100 ANALYSIS

EUROPE will beacham barcelona

Low crude oil prices have had a mixed impact on europe
Many major European chemical first shipments beginning in
companies experienced falling March 2016.
sales in 2015 compared with the The group also continued to
previous year as the collapsing oil invest in the development of UK
price fed through to chemicals. shale gas. In addition, it is plan-
The region’s economy was not ning an expansion of downstream
performing strongly either, which chemical facilities in
made it difficult for some to take Grangemouth through the crea-
advantage of falling feedstock tion of a chemical park.
prices to boost margins.
However, low oil meant Europe’s Europe’s naphtha-
naphtha-based petrochemical pro-
ducers saw their feedstock disad-
based petrochemical
vantage – compared with producers saw
ethane-fed cracker operators in their feedstock
North America and the Middle East
– continue to improve. disadvantage
Germany’s BASF saw sales and continue to erode
net profit dive for the full year
2015 as the low oil price hit its oil In 2015 Dutch-headquartered
and gas business. LyondellBasell achieved remark-
New project start-ups were able polyolefin margins, which
mainly in Asia and Latin America, either expanded or remained at
where an acrylic acid and super- healthy levels.
absorbent production complex in As one of the world’s leading
Camaçari, Brazil, began opera- polyolefin producers, with
tions in the second quarter of strength in North America, Europe
2015, and a methylene diphenyl and Asia, LyondellBasell sold
diisocyanate (MDI) plant in 11.8bn lb (5.3m tonnes) of poly-
Chongqing, China, started up in ethylene (PE) in 2015, up from
August 2015. Expansion of its 11.1bn lb in 2014.
Verbund site in Nanjing, China, For polypropylene (PP), it sold
continued. 9.37bn lb, up from 8.92bn lb.
Phil Arthur

Maintaining its commitment to Markets were tight for many

mature markets, a new 300,000 polymers in 2015, especially poly-
tonne/year toluene diisocyanate more active in disposals. On 31 INEOS continued its innovative propylene in the US, where the
(TDI) plant started up in March it sold its white expandable moves to import US ethane as a switch to lighter feedstocks re-
November 2015. Together with polystyrene (EPS) business in way of seizing the US shale ad- duces the amount of propylene
Norway’s Yara, it began construc- North and South America to vantage. available for polypropylene.
tion on an ammonia production Mexico’s Alpek. Construction of handling facili- Meanwhile in Europe, a series
plant in Freeport, Texas. It also sold its global textile ties at Rafnes, Norway, and of planned and unplanned out-
The group made some minor chemicals business to Archroma Grangemouth, Scotland, pro- ages caused turmoil, with prices
acquisitions that year, but was Textiles of Luxembourg. gressed during the year with the spiking as a result. ■

EUROPE TOP 10 LEADERS ($m, % change in reporting currencies)

Ranking 2015 Company Sales 2015 Change (%) Operating profit 2015 Change (%) Net income 2015 Change (%)
1 BASF 76,554 -5.2 6,789 -18.1 4,332 -22.7
2 LyondellBasell Industries 32,735 -26.8 6,122 6.7 4,476 7.2
3 INEOS 25,678 15.2 3,828 83.9 - -
4 Linde Group 19,499 5.3 2,220 8.4 1,360 7.7
5 Air Liquide 17,799 6.7 2,880 -3.9 1,997 6.6
6 Total 1 17,500 -28.9 - - - -
7 AkzoNobel 16,147 3.9 1,709 59.4 1,158 72.5
8 Johnson Matthey 2,5 15,407 6.5 602 -21.4 468 -23.8
9 Evonik 14,677 4.6 1,904 39.5 617 667.6
10 Merck KGaA 13,958 13.0 2,003 4.6 1,222 -3.5
NOTE: Please refer to the main Top 100 listing in the 5 September issue for footnotes.

www.icis.com 12-18 September 2016 | ICIS Chemical Business | 25

special report TOP 100 ANALYSIS

NORTH AMERICA joseph chang new york

Coatings giants rise in North America rankings
IN A year where revenue growth expect PPG and Sherwin-Williams
was a rare and precious commodity, to jostle for coatings dominance in
only the two major coatings compa- the coming years.
nies – PPG Industries and Sherwin- Meanwhile, Dow Chemical – as
Williams – posted flat to slightly the #1 player with $48.8bn in sales
higher sales among the Top 10 – extended its lead over #2
players headquartered in North ExxonMobil Chemical, as the latter
America. saw sales fall 26.3% in 2015 amid
With just about everyone else the severe commodity chemicals
posting sales declines, that was pricing downturn. Dow’s sales de-
enough to propel both higher in the clined by 16.1%.
regional rankings.
PPG Industries grabbed the #4 Coatings competitor
spot from Canada-based fertilizer
producer Agrium, which fell to #5.
Sherwin-Williams
This was despite a 0.2% decline in was the only
sales to $15.3bn. company among the
Mergers and acquisitions (M&A)
helped bolster the top line, high- Top 10 to post a sales
lighted by PPG’s buyout of Mexico’s gain in 2015 – a slight
leading paints producer and dis-
tributor Comex in late 2014 that
1.9% increase to
added to 2015 sales. PPG also $11.3bn, boosting it
completed six smaller acquisitions to the #7 position
in 2015 and expanded resin capac-
ity at sites in the US, China, Mexico

Phil Arthur
and Brazil. While the companies were al-
PPG’s sales in local currencies most neck and neck in 2015 – with
actually rose over 7%, but the com- Looking ahead, PPG’s planned secutive year of record profits. Like less than a $2bn sales gap be-
pany faced headwinds from the divestitures of its architectural PPG, it faced currency headwinds tween the two – Dow has widened
strong US dollar, which lowered the glass unit, as well as its European from the strong US dollar. its lead to over $20bn.
dollar value of international sales fibreglass business, will weigh on On the M&A front, the acquisi- The commodities downturn also
translated back. overall sales. tion of Comex’s US and Canada caused Chevron Phillips Chemical
Profit-wise, PPG generated re- Coatings competitor Sherwin- business in 2014 contributed to to fall off the Top 10 list from its #7
cord adjusted earnings per share Williams was the only company sales in 2015. position last year.
of $5.69. The strong performance among the Top 10 to post a sales Sherwin-Williams will eventually Dow’s #1 position in the North
was reflected in the 26.7% gain in gain in 2015 – a 1.9% increase to get a bigger boost from its planned America Top 10 appears destined to
operating profit in 2015, although $11.3bn, boosting it to the #7 posi- $11.3bn acquisition of US-based be temporary.
not in the 2015 net income figure, tion from #10 in the previous year. coatings firm Valspar, which is ex- While it plans to merge with #3
as this did not include profits from Operating profit jumped 21.9% and pected to close in Q1 2017. \ player DuPont before the end of
its share of the divested net profit 21.7%. 2015 was the fifth Valspar is #80 in the ICIS Top 2016, the merged company would
Transitions Optical and sun lenses consecutive year of record sales for 100 Chemical Companies listing then aim to become three separate
joint venture. the company and the fourth con- with $4.4bn in sales in 2015. Fully publicly traded companies. ■

NORTH AMERICA TOP 10 LEADERS ($m, % change in reporting currencies)

Ranking 2015 Company Sales 2015 Change (%) Operating profit 2015 Change (%) Net income 2015 Change (%)
1 Dow Chemical 48,778 -16.1 10,805 74.4 7,783 102.7
2 ExxonMobil Chemical 1 28,134 -26.3 5,698 -0.1 4,418 2.4
3 DuPont 25,130 -11.5 2,933 -37.5 1,953 -46.1
4 PPG Industries 15,330 -0.2 1,968 26.7 1,406 -33.1
5 Agrium 14,795 -7.8 - - 988 37.2
6 Ecolab 13,545 -5.1 1,561 -20.1 1,002 -16.7
7 Sherwin-Williams 11,339 1.9 1,611 21.9 1,054 21.7
8 Praxair 10,776 -12.2 2,321 -11.0 1,547 -8.7
9 Huntsman 10,299 -11.0 405 -36.0 126 -63.5
10 Air Products 9,895 -5.2 1,699 27.9 1,278 28.9
NOTE: Please refer to the main Top 100 listing in the 5 September issue for footnotes.

26 | ICIS Chemical Business | 12-18 September 2016 www.icis.com

 special report TOP 100 ANALYSIS

ASIA John Richardson Perth

Polyolefin profit surge buoys Asia
For anybody involved in the pol- Next year will see Reliance at-
yolefins business in Asia integrat- tempt something unique: A new
ed through to their own crackers, cracker complex based on off-gas
2015 was a very good year for ethane from its giant refinery ca-
margins. pacities at Jamnagar in the state
Despite substantially lower oil of Gujarat in India.
and therefore naphtha prices, poly-
ethylene (PE) and polypropylene PE and PP pricing
(PP) pricing held up very well as a
result of tight supply and demand
held up very well as
balances in both of these major a result of tight
polymers. This was despite China supply and demand
moving closer to self-sufficiency in
PP as it continued to bring on- balances in both
stream substantial amounts of coal- of these major
based and propane-based capacity.
Sinopec, which retained its top
polymers
spot in our Asia Top Ten leading
companies, saw a staggering im- Although crackers elsewhere in
provement in its operating profit. the world source some of their
In 2014, it made an operating feedstock from refinery-based
loss $351m, but last year this ethane off-gases, nothing on this
swung to a profit of $3bn. This scale has been attempted before.
was largely thanks to PE and PP Downstream of this new world-
margins that were at multi-year scale cracker, located next to the
highs during 2015. Jamnagar refineries, will be
So far in 2016, ICIS estimates 400,000 tonnes/year of low-den-
of PE and PP integrated variable sity PE and 550,000 tonnes of
cost margins (assuming integra- linear-low density PE. Start-up is
Phil Arthur
tion through to naphtha-based slated for early 2017.
steam crackers) have remained Reliance will thus be clearly
exceptionally strong. increase in 2015 over 2014. Its example, one of the applications aiming to improve on its 2015
A major downside for Sinopec sales were up by 4.7% in 2015 for its polyester films is in com- performance where sales fell, but
will remain the polyester value over last year, with its operating puter data storage. operating profit rose by 23.3%.
chain. Polyester fibre, film and profit no less than 25.1% higher. Reliance Industries is of course Back to the speciality end of
purified terephthalic acid are in This led to Toray climbing from a major commodity petrochemi- this industry. Japan’s Sekisui
major global oversupply as a re- sixth position in our Asian Top Ten cals player with a very strong posi- Chemical has broken into our Top
sult of recent capacity additions to third place. tion in the Indian market. 10. The high performance plastic
in China. One of Toray’s strengths is that Integration is also its strength, company’s product portfolio in-
But Japan’s Toray, which has it plays in higher-value end-use through from some of its own hy- cludes LCD fine particles, photo-
around a 20% share in the global markets for its polyester films drocarbon reserves to a huge po- sensitive materials,
polyester films business, saw business, its textiles business, sition in refining – and then semiconductor materials, optical
both its sales and operating profit and its other product lines. For downstream into petrochemicals. films and industrial tapes. ■

ASIA TOP 100 LEADERS ($m, % change in reporting currencies)

Ranking 2015 Company Sales 2015 Change (%) Operating profit 2015 Change (%) Net profit 2015 Change (%)
1 Sinopec 1 50,238 -23.7 3,030 - - -
2 Mitsubishi Chemical Holdings 2 34,005 4.6 2,491 69 413 -23.8
3 Toray 2 18,719 4.7 1,374 25.1 802 26.9
4 Sumitomo Chemical 2 18,695 -11.6 1,463 29.1 1,000 58.1
5 LG Chem 17,181 -10.5 1,551 39.1 977 34.5
6 Reliance Industries 2 12,453 -14.9 1,545 23.3 - -
7 Mitsui Chemicals 2 11,955 -13.3 631 68.8 205 32.9
8 PTT Global Chemical 11,104 -27.4 788 55.2 569 33.1
9 Sekisui Chemical 2 9,749 -1.5 799 4.7 504 6.9
10 Asahi Kasei 8,491 4.6 422 -26.6 - -
NOTE: Please refer to the main Top 100 listing in the 5 September issue for footnotes.

www.icis.com 12-18 September 2016 | ICIS Chemical Business | 27

special report TOP 100 ANALYSIS

MIDDLE EAST AND AFRICA JOHN BAKER LONDON

Middle east/africa CONTINUEs TO SUFFER fROM PRICE FALLS
The continuing softness in petro- increased turnover not only moves it
chemical prices as a result of the up a slot in the regional table, but
low oil price hit Middle East produc- puts it at #34 in the global ranking,
ers hard on the top line in 2015. some eight places ahead of Sasol in
The bottom line also suffered in the 42nd slot.
many instances, as rising feed-
stock and energy costs in the GCC “Product demand has
region cut into margins.
The region’s largest chemicals slowed because of
company SABIC saw sales decline diminished growth
by 21.6% to $39.45bn, although
that figure leaves it still in fourth
in the emerging
place overall in the global ICIS Top economies of Asia
100 ranking, after BASF, Sinopec and the mature
and Dow Chemical. The company
has not seen top line growth now economies of
for four years. Operating profit in Europe”
2015 was down by a similar margin SABIC
(-24.4) to $7.60bn, while net earn-
ings were just $5bn, down nearly
20% on the 2014 figure. Only three others – Parsian Oil &
SABIC’s vice chairman and CEO Gas, ICL of Israel and Tasnee of
Yousef Al-Benyan commented that: Saudi Arabia – make it into the glob-
“Industries that use oil or gas as a al Top 100 this year, which requires
feedstock go through cycles as pric- sales of over $3.1bn, just squeezing
es rise and fall... SABIC is well out ADAMA, with $3.06bn.
placed to deal with these cycles. In At the regional #3 slot, Sasol saw
2015 SABIC increased production turnover slip slightly, by 6% to $9.2bn,

Phil Arthur
by 1% and sales volume by 4% but earnings improve significantly, by
compared to 2014... but product 23% to $1.9bn. The company has
demand has slowed because of from six to five, consistent with the place in the regional listing, over- been restructuring operations and
diminished growth in the emerging strategy of optimising its portfolio. taking South Africa’s Sasol, which reports that the chemicals business
economies of Asia and the mature Other GCC producers also suf- saw sales decline 6% to $9.2bn, “delivered an exceptional perfor-
economies of Europe.” fered, with Tasnee seeing sales fall affected by a poor domestic econo- mance, having consistently reported
SABIC is currently undergoing a 19% to $4bn, Rabigh Refining & my and currency weakness. increased sales volumes over the
transformation process to make it Petrochemical sliding 41% to Iran’s Parsian Oil & Gas past two years.” Normalising for the
more fit to tackle the challenges, he $1.6bn and Industries Qatar off Development Company and impact of the sale of the solvents
added, noting that “the benefits will 12% to $1.44bn. The three Iranian TAPPICO both saw sales and earn- business in Germany and the Sasol
continue to filter through to our petrochemical entities had a mixed ings fall substantially. Polymer Middle East (SPME) busi-
organisation and contribute to even performance, with Persian Gulf The Top 10 Middle East and Africa nesses sales volumes for
greater profitability.” Petrochemical Industry seeing listing this year includes the same 10 Performance Chemicals and Base
The company has reduced the sales rise slightly by 4% to producers as last year, with only Chemicals both increased by 2%
number of strategic business units $10.36bn, taking it into second slight reorganisation. Persian Gulf’s from the prior year. ■

MIDDLE EAST AND AFRICA TOP 10 LEADERS ($m, % change in reporting currencies)

Ranking 2015 Company Sales 2015 Change (%) Operating profit 2015 Change (%) Net profit 2015 Change (%)
1 SABIC 39,450 -21.6 7,597 -24.4 5,000 -19.6
2 Persian Gulf Petrochemical Industry 10,357 4.0 2,075 11.0 2,394 -0.1
3 Sasol 3,4
9,180 -6.0 1,887 23.3 - -
4 Parsian Oil & Gas Development 7 5,498 -5.2 1,773 -12.4 1,994 -7.9
5 ICL 5,405 -11.6 765 0.9 506 8.6
6 Tasnee 4,035 -19.0 589 -52.0 -379 -
7 ADAMA Agricultural Solutions 3,064 -4.9 300 -3.5 110 -24.7
8 TAPPICO 2,328 -68.6 707 -57.7 490 -
9 Rabigh Refining & Petrochemical 1,602 -40.7 - - - -
10 Industries Qatar 1,436 -12.4 304 -21.5 1,221 -29.9
NOTE: Please refer to the main Top 100 listing in the 5 September issue for footnotes.

28 | ICIS Chemical Business | 12-18 September 2016 www.icis.com

 special report TOP 100 ANALYSIS

LATIN AMERICA joseph chang new york

Mexichem edges up in Latin America amid currency headwinds

Among the Latin America leaders, Braskem Idesa joint venture ethane
Mexichem was able to fight off ma- cracker in Coatzacoalcos, Mexico,
jor currency headwinds and move along with associated PE units. The
up to the #2 spot in place of fellow project should contribute meaning-
Mexico-based company Alpek, fully to 2016 and 2017 sales as
which fell to #3. production continues to be ramped
The strength of the US dollar ver- up this year. Braskem owns 75% of
sus the Brazilian real and the the project, with partner Grupo
Mexican peso in 2015 crushed Idesa holding 25%.
sales in US dollars for the group.
Even as leader Brazil’s Braskem Brazil’s Braskem also
posted a 2.7% increase in sales in
local currency (as shown in the ta-
showed resilience in
ble), its sales plunged by 31.1% in 2015 in a difficult
US dollars to $11.9bn. commodity chemical
Mexichem bolstered its 2015
revenues with the help of mergers market by boosting
and acquisitions (M&A). The com- its PE and PP resin
pany bought US-based polyethylene
(PE) pipe producer Dura-Line and
exports
Germany-based specialty polyvinyl
chloride (PVC) producer Vestolit in
2014, and felt the full effects of their Mexico’s Alpek is setting the stage
sales contributions in 2015. At the for higher future revenues after see-
time of the deals, the Dura-Line ac- ing sales decline in local as well as
quisition (completed September US dollar terms in 2015. It is in talks
2014) was expected to add around with Brazil’s Petrobras to buy the lat-
$650m in annual sales, and Vestolit ter’s Petroquimica Suape polyethyl-
(December 2014) about €477m in ene terephthalate (PET) business.
annual sales. Suape’s PET plant in Pernambuco
Mexichem also achieved double- state, Brazil, has capacity of about
digit gains in operating profit as well 425,000 tonnes/year.
as earnings before interest, tax, de- In August 2016, Alpek’s US sub-
preciation and amortisation sidiary DAK Americas bought a con-
(EBITDA) in US dollar terms in 2015 trolling interest in Selenis Canada,
Phil arthur

despite currency headwinds. which has 144,000 tonnes/year of

Going forward, Mexichem is sharp- PET capacity in Montreal.
ening its focus on organic growth with wide in 2017. Also contributing to in 2015 in a difficult commodity Alpek’s parent company, Grupo
a “product-by-product and unit-by-unit future growth will be its joint ven- chemical market by boosting its PE Alfa, has been clear about its intent
analysis of the opportunities for us- ture 544,000 tonne/year ethane and polypropylene (PP) exports as it to be active in M&A for Alpek to
ing the geographic platform the com- cracker in Ingleside, Texas, US with dealt with a severe recession at take advantage of opportunities
pany has built and promoting the partner Occidental Chemical. The home in Brazil, resulting in a 7.6% arising from lower oil and petro-
growth of our entire range of products project, expected to be completed decline in local resin demand. The chemical prices.
across multiple markets in order to in Q1 2017, will provide ethylene company increased resin exports by On the organic growth front, Alpek
increase organic growth rates”, CEO feedstock for intermediate chemi- 28% in 2015 to 1.4m tonnes, help- is increasing expandable polystyrene
Antonio Carillo Rule stated in the cal vinyl chloride monomer (VCM), ing it achieve double-digit gains in (EPS) capacity in Altamira, Mexico, by
company’s annual report. which will then be shipped to operating profits and EBITDA. 75,000 tonnes/year by the end of
Mexichem plans to roll the pro- Mexichem’s plants in Mexico for Braskem also achieved a mile- 2017, and considering a 750,000
ject out in five pilot countries in the PVC production. stone in 2015, having completed in tonne/year monoethylene glycol
second half of 2016, and company- Braskem also showed resilience December its 1.05m tonne/year (MEG) plant with Pemex. ■

LATIN AMERICA TOP 10 LEADERS ($m, % change in reporting currencies)

Ranking 2015 Company Sales 2015 Change (%) Operating profit 2015 Change (%) Net income 2015 Change (%)
1 Braskem 11,937 2.7 1,780 97.6 732 299.1
2 Mexichem 5,708 2.8 509 24.1 131 13.9
3 Alpek 4,846 -2.9 440 103.0 212 178.9
4 Pemex 1 1,139 -30.6 466 - 453 -
NOTE: Please refer to the main Top 100 listing in the 5 September issue for footnotes.

www.icis.com 12-18 September 2016 | ICIS Chemical Business | 29