Top 100 Chemical Companies 2012
Content
ISAAC AFTERMATH MINIMAL DAMAGE BUT US PRICES RISE ON OUTAGES NEWS FOCUS P10
EUROPE ETAC
Ethyl acetate prices are expected to continue rising as global feedstock costs remain high 14
ASIA PMMA
Prices face downward pressure on weak demand and upcoming supply in Japan 43
10-16 September 2012
Periodicals Entry
Chemical Business
ANALYSIS OF CHEMICAL MARKETS
IN ASSOCIATION WITH
We present the ICIS Top 100 Chemical Companies, a ranking of the world’s largest chemical producers. Sponsored by DKSH, the listing – based on 2011 sales – reveals some surprises. Revenues and profits rose again, backed largely by price gains. Germany’s BASF led the pack with $95.2bn in sales, while China’s Sinopec made major strides to capture the number two position, edging out US-based ExxonMobil Chemical. On page 36, the ICIS data team slices and dices the statistics.
www.icis.com
30 It was a year of contrasts, with strength in the first half of 2011 overshadowed by weakness in the second half. Yet it was a record year for sales for the Top 100.
RECOrDS FALL
33 The list of the world’s top chemical producers shows some big movers. See who made the cut and also those “bubbling under” down to number 125.
ICIS TOP 100 rANKiNG
36 Sales for the Top 100 chemical companies largely mirrored the ICIS Petrochemical Index. See the forecast for 2012 sales. Is bigger better? Plus, operating margins of the Top 20 reveal an interesting picture.
TOP 100 DriVEN BY PriCES
10-16 September 2011 | ICIS Chemical Business | 29
Gareth JJ Burgess
ANALYSIS
NIGEL DAVIS LONDON
W
hile on paper it was a good year for the chemical industry, 2011 will be remembered for all the wrong reasons. Having started with such promise, it soon began to run off the rails. Oil prices climbed but demand growth slowed. By the end of the year, manufacturing industry activity globally was subdued and chemical demand had fallen away. But sector companies’ financial results for the calendar year reflect the strength of the first half of 2011, rather than the slump in the fourth quarter. Some companies produced record financial results. At the start, chemical companies were convinced that 2011 would be a strong year, with demand driven by a recovering US economy and growth in the important China market. But sector growth estimates were revised downward sharply by mid-year. Earnings reflected the changing macroeconomic and industry environment. For upstream players, particularly, the third quarter was difficult, and the fourth quarter even harder. ICIS collects financial information on the leading global chemical companies for its Top 100 chemical company listing and analysis. The listing by sales in 2011 reflects a world that continues to change, with emerging market players showing the strongest year-onyear growth. Some chemical producers hit new sales records in 2011 as rapidly growing international markets compensated for quickly contracting growth in the US and, particularly, in Europe.
Some companies have vaulted up the rankings
EUROZONE IMPACT The eurozone sovereign debt crisis began to weigh heavily on markets and national economies as the year progressed. Chemical industry players, as suppliers of vital intermediates for manufacturing, construction, transport and consumer products, felt the squeeze on all fronts. The upstream chemical participants and, particularly, those involved with
Records fall in year of contrasts
Profits and sales surged ahead in 2011 and companies with Asia exposure shot up the ranks. Sinopec rose two places to become the second-largest chemical company
30 | ICIS Chemical Business | 10-16 September 2012 www.icis.com
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more basic chemicals, petrochemicals and plastics, were the first to respond to changing market conditions. Volumes suffered in some sub-sectors in the second quarter, while others followed suit later on. The third-quarter slowdown was most noticeable in the financial results of upstream petrochemical producers squeezed by still-high oil-based raw material and energy costs and starting to feel the negative impact of lower sales volumes. During the course of the year, producers gained more on price than on volume. The important emerging markets underpinned growth, while well-established markets and important end-use sectors, such as construction, struggled.
DKSH MaRiO PREisslER GLObaL HeaD, PerfOrmaNce MateriaLs
A MESSAGE FROM OUR SPONSOR
The ICIS Top 100 Chemical Companies highlights businesses that have successfully dealt with the challenges of the global market. Our sponsor, DKSH, gives a view on how it can help chemical companies to grow their business in new and existing markets. DKSH Business Unit Performance Materials, a leading specialty chemicals distributor, is honoured to be the sponsor for the ICIS Top 100 Chemical Companies. As an industry, chemical distribution will see continued growth, especially since chemical producers are strengthening their global reach and further expanding their business to the fast growing markets, especially in Asia. Another visible trend is that outsourcing of key activities by chemical producers is increasing – a trend that is opening many new opportunities. DKSH is ranked No 3 in Asia in the ICIS Top 100 Chemical Distributors list, published in July 2012, and we
STRONG PERFORMANCE Against the backdrop of what turned out to be a difficult year, and certainly one of contrasting quarters, most producers in the Top 100 nevertheless performed well. The year started with cash flowing and companies determined to keep costs under control. Working capital was being managed effectively, while some took the opportunity to pay down or reschedule debt. The ICIS ranking by sales shows that the Top 100 players – those with sales of $3.2bn plus – saw healthy sales growth of more than 12% in 2011. The upstream petrochemical players showed the strongest growth for the year, having pushed sales much higher in the first half as volume demand increased. These companies in particular were able to push their product prices higher as oil prices climbed and feedstock naphtha costs rose. In rough terms, petrochemical prices tend to follow the price of crude oil, whether the feedstock is oil- or natural gas-based. Product portfolios and regional growth characteristics continue to shape the ICIS Top 100 table. The upstream petrochemical producers achieved particularly strong growth in 2011, while specialty chemical makers tended to grow at a slower rate. Once again, however, the quarter-to-quarter dynamics of the results are masked in the annual figures. The ICIS Top 100 Chemical Companies listing by sales reflects continued mergers and acquisitions (M&A) activity in the sector, as well as diverse regional growth dynamics. ASIA GROWTH REFLECTED The growth and influence of Asian companies is the story behind changes in the 2011 rankings. China’s largest petrochemical producer, Sinopec, continued to grow strongly during the year, with its chemical segment sales up by 28.9% in local currencies, and by 34.9% higher in US dollars. We include the chemical segments of the major oil companies in the ICIS Top 100 listwww.icis.com
“As an industry, chemical distribution will see continued growth”
aim to continue consolidating our leadership position in the region. We have been at home in Asia for nearly 150 years, reliably safeguarding the interest of our business partners. DKSH is already a leader in its traditional strongholds such as Southeast Asia and Japan. In Japan we are the strongest non-Japanese chemical distributor. Our strategy is to grow our leading position across Asia by strengthening operations in China, India, and Korea.
Our clients, leading chemical producers, appreciate our unparalleled geographical spread covering the whole of Asia (and Western Europe), as well as our application- and service-driven business model, which enables us to work and think like a specialty chemicals company. Our specialists act in the market on behalf of key clients as if they were their employees. They are supported by a Key Client Management team providing a single point of contact while still leveraging our group’s network and resources for our clients’ best interests. To support the philosophy of offering more than just distribution, we have opened a series of innovation centres – presently totalling 23 globally; 20 of these in Asia. In these centres, DKSH technical specialists work on new and improved formulations to meet and anticipate clients’ and customers’ needs. ■ Visit us at: dksh.com/ chemicaldistribution and youtube.com/DKSHGroup
ing and analysis. We convert reported financial data to US dollars at the relevant financial year-end exchange rate, so the strength of certain currencies against the dollar plays a part in the rankings. Columns in the ICIS Top 100 table give year-on-year sales and profits percentage changes in US dollar and reporting currency terms. Other major Asia players making important gains in 2011 were Thailand’s PTT Global Chemical, which represents the combined businesses of the former PTT Chemical and PTT Aromatics, and Indorama, one of the most prolific acquirers of assets in the chemical industry over the past two years. South Korea’s Honam Petrochemical saw sales jump by 47.6%, while petrochemical sales for India’s Reliance Industries increased by 28.2%. Fertilizer makers also grew strongly in 2011, as did important regional players in chemicals such as Mexichem, Russia’s SIBUR, Brazil’s Braskem, Poland’s PKN Orlen and Saudi Arabia’s SABIC. The major changes in rankings by sales in the ICIS Top 100 largely reflect these gains.
SINOPEC cLImBS LADDEr Sinopec’s petrochemical operations jump two places in the table to claim second place behind leading industry giant BASF despite strong growth by others in this leading group of producers. US-based Dow Chemical slips to fourth in the table from second last year, reflecting its realignment as a more specialty-oriented materials producer. Five companies showed sales growth of more than 40%; 12 achieved growth of more than 30%. Not surprisingly, perhaps, the strongest top-line growth was shown by Asian companies and fertilizer producers. However, petrochemical groups based outside Asia but with a strong presence there also did well. Only 12 of the Top 100 companies saw sales contract in 2011. Among them were some of Japan’s leading chemical producers that were hit hard by the earthquake and tsunami that struck the north-east of the country’s main island. M&A activity helped push Belgium’s Solvay and PTT Global Chemical into the top ❯❯
10-16 September 2012 | ICIS Chemical Business | 31
ANALYSIS
❯❯ 30 group in 2011. France’s Rhodia is no longer included in the rankings, having merged with Solvay in 2011.
PETROCHEMICALS GAIN Volume demand growth earlier in the year and pricing power helped the large petrochemical producers make gains in 2011, despite the fourth-quarter slump. In 2011, the West Texas Intermediate (WTI) oil price fluctuated between $75/bbl and $112/bbl, with the high point early in the second quarter and the low point at the start of the fourth quarter, and lower prices in the second half of the third quarter. The ICIS Petrochemical Index (IPEX), which reflects prices of a group of 12 important petrochemical and polymer products in three regions, moved from 300.45 in January to a peak of 374.94 in June and then down to 300.78 by December. Producers in Europe tied to naphtha and other oil-related feedstocks faced a challenge in passing their feedstock price increases on to customers in polymers and intermediates downstream from the cracker. Companies cracking ethane in the Middle East continued to achieve high returns. Those cracking ethane in the US benefited greatly from low and competitive ethane prices brought about by the North American shale gas revolution. US fertilizer producers also benefited greatly from low natural gas prices in North America, but were also boosted by demand growth. Intermediates and specialty chemical makers were squeezed by higher upstream chemical costs but, once again, demand in the first months of the year helped them to retain and increase prices. Industrial gases producers, which are also included in the ICIS Top 100 analysis, made the most of the industrial demand for gases in the emerging economies, particularly China.
China’s Sinopec grew strongly during the year, to reach second place in the listings
PROFITS RISE Volume demand growth, lower costs and higher prices translated into increased profits for most chemicals players in 2011. Earnings before interest and tax (EBIT) surged for CF Industries, Agrium and Occidental Chemical of the US, and for Norway’s Yara International and South Korea’s SK Energy, as well as Sinopec. Profits data are not available for all the companies listed in the ICIS Top 100, but the table shows both EBIT and the net profit results. We also list the important assets, spending and employee data on which the ICIS Company of the Year award is based. The winner will be announced in our 24 September issue. ICIS collects a considerable amount of financial data on the major chemical companies, not all of it shown in the table published
in ICIS Chemical Business. The additional data are available on request. The strongest operating profit margins (operating profits to sales ratio) in 2011 were shown by the fertilizer producers – Potash Corp of Saskatchewan, CF Industries and EuroChem. Russia’s SIBUR and SABIC also produced strong operating margins, as did industrial gases companies including Germany’s Linde, and Praxair of the US. The ICIS Top 100 data also show that companies were using their cash to add new production capabilities in 2011. Capital spending across the Top 100 companies listed in 2011 increased by an average of 28%. ■
To access the 2012 ICIS Top 100 chemical companies listing package online, visit icis.com/top100chem
FootNotES
C hemical segment figures. Includes inter-segment revenues, e.g. revenue for sales of by-products to other divisions. For ExxonMobil, inter-segment revenue was $22.8bn in 2011 and $18.1bn in 2010. For Sinopec = external sales with inter-segment sales. Ube figures = Chemicals & Plastics + Specialty Chemicals & Products. b 2 010 finances are based on the sum of predecessor and successor components after emergence from bankruptcy, 30 April, 2010. c Financial year-end 31 March, 2012. d Net sales includes inter-segment sales; data excludes HealthCare division (2011 sales €17.2bn; 2010 sales €16.9bn). e Excludes real estate and energy busi ness areas.
a f
Linde Gas & Engineering sales, operating profit and employee figures only. Pro-forma results include the acquisi tion of Rhodia from January 2011. h PTT Global Chemical Public Company Limited was formed by the amalgamation of PTT Chemical Public Company Limited and PTT Aromatics and Refining Public Company Limited and was registered as a new entity on 19 October, 2011. i Petrochemical figures. For SK Energy, the sales revenue figure includes inter-segment sales. j O ptical segment and glass segment figures have not been included. k A sahi Kasei excludes homes and healthcare segments. l F inancial year-end 30 June, 2011 – business segments’ total turnover
g
figures: polymers, solvents, olefins, surfactants, waxes and nitro used. Financial year-end 31 May, 2012. n I CIS estimates. BP Petrochemicals figures only. Revenue represents third-party sales as well as other operating revenues and excludes the sales made by joint ventures, which are equity accounted. BP’s underlying replacement cost profit, excluding joint venture interests in Europe. o Net sales figure. The total of NPC and its associated companies in 2011 is $25bn. p A dhesive Technologies segment only. q N et profit is pre-tax. r Sud-Chemie sales consolidated for the eight-month period following acquisition in April 2011. s A ll figures for SIBUR are based on
m
combined financial information, which excludes results of the mineral fertilizers and tires businesses divested by SIBUR in December 2011. t 2011 and 2010 figures (re-stated) exclude the vinyl products business segment, announced as having been sold to the Klesch Group. u N alco was fully acquired by Ecolab in December 2011. v 2 010 income statement and cashflow statement adjusted to reflect disposal of the COMPO business. 2011 figures refer to continued operations, excluding COMPO, which was sold to Triton with effect from 18 October, 2011. w I ncludes the assets and results of the operations acquired from Eastman Chemical, from 1 February, 2011.
32 | ICIS Chemical Business | 10-16 September 2012
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ThE ICIS TOP 100
Rank 2011 Company $m
Sales % Change Reporting currency in $ 12.5 34.9 20.7 11.8 24.0 24.9 18.5 1.2 20.5 -20.3 9.6 4.2 -1.8 4.8 12.6 20.1 3.1 4.8 7.1 4.8 16.0 4.4 11.9
Operating profit $m
2011
Net profit $m
2011
Total assets % $m 79,277 27,107 69,224
Change
R&D % $m 2,080
Change
Capital spending
Employees
%
$m
2010
$m
2010
% $m 4,419 2,385 1,450 30.9 111,141 21.9 -34.5 26.2 51.7 -33.9 -21.6 -1.5 22.2 29.2 1.5 -32.3 29.6 31.2 9.4 70.1 18.4 21.0 10.3 18.9 -0.7 29,121 40,227 46,200 32,421 50,417 7,164 57,240 53,979 70,000 12,807 1,098 41,665 56,100 51,705 14,000 40,000 71,607
Change Numbers Change
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
BASF Sinopeca ExxonMobila Dow Chemical LyondellBasell Industriesb SABIC Shella Mitsubishi Chemicalc DuPont INEOS Totala Bayerd Sumitomo Chemicalc AkzoNobel LG Chem Johnson Mattheyc Torayc Air Liquide Evonika/e Linde Groupf Braskemx Mitsui Chemicalsc Solvayg PTT Global Chemical Public Co. Ltd.h Reliance Industriesc/i Agrium Honam Petrochemical Chevron Phillips Chemical Yara International Merck KGaA Syngenta
95,245 15.1 65,752 28.9 64,731 20.7 59,985 11.8 51,035 24.0 50,636 25.0 46,963 18.5 38,713 1.3 37,961 20.5 27,529 -18.5 26,839 12.1 24,975 23,505 20,342 6.5 -1.7 7.2
11,127 10,286 8019 4,018 5,875 3,601 3,998 2,240 5,996 2,802 2,944 4383 2402 2147 2054 1,576 4,282 1,849 903 1,241 732 1,350 2,448 694 1,300 3,157 2,498 4,160 1,036 260 2,735 3,711 1,528 1,278 1,152 1,062 1,616 2,520 449 1,209 2,987 1,987 3,877 1,937 490 1521 -277 -12 1069 952 1873 505 775 1989 67 428 3474 240
6039 4913 1970
0.7 3.3 -0.5 -9.7 5.2 -3.7
5.2
1.8 9.1 4.4 0.0 21.2 0.2 16.7 -6.4 0.0 0.7 3.0
22,677 18.5 1,646 196 219 1,672 1,956 -0.8 27.3 25.7 5.8 18.5
2,687 1,050 2,838 634 1,402 1,843
10151 22,839 5741 1511 1009 3031 -32 38,301 88,736
13,023 10,105 7797
48,492 20.0 14,714 -17.9 34,766 2.7 -1.4 -3.3 0.1 0.8 4.7 5.2 -3.4 -3.1
1,275 63 461
-2.5 1.9 4.2
1,367 200 917 1,896 241
295 1965 291 699 1860 1332 1138 300 538
28,201 25,748 5,227 19,084 31,262 37,471 20,056 15,160 11,823 8,341
19,580 16.5 19,252 20.4 19,170 18,735 18,308 17,867 17,546 15,996 15,937 28.2 15,470 44.0 14,169 47.6 13,935 24.4 13,441 22.9 13,317 10.6 13,268 14.0 3.2 7.2 9.6 7.1 4.5
13,199 16.6 621 326 473 127 53 283 10.4 4.7 5.6 1.9 12.1 56.9
1,138 2,274 980 1,743 1,209 541 1,654
3.8 6.0 -2.7 4.1 6.1 73.5
21,958 -19.3
17,813 30.1 16,449 14.4
15,634 131.8
13.4 44.0 47.6 24.4 19.7 8.2 14.0
1,781 2,223 1,449
2,121 1,113 1,122 1375 1022 1970 713 812 1388 1499 838 1397
-17.9 1.9 22.2 7.7 21 1,966 1,127 17.5 6.2 9.2 26 23.8
432 663 867
254.1 50.3 -41.8 14,800 1,657 4.6 6.4
13,140 9,318 8,634 28,665 17,241
2,215 1,277 2,051
1,282 1,476 1,793
2018 800 1599
12,361 10.0 -3.4 -0.3
485 475 479
-8.6 -9.6 21.0
7,627 40,676 26,333
3.8 0.3 0.1
2 010 figures re-stated. M omentive companies listed separately as fiscal-year 2011 financials for the Momentive holding company have not been filed. z F inancial year ending 30 September, 2011. aa Adopted new and revised Thai finan cial reporting standards (TFRS) from 1 January, 2011. Figures for 2010 restated according to new standards. bb Specialty Materials figures used. cc Figures are for petrochemicals and fertilizers only. dd Figures exclude PVC/chlor-alkali and part of the organic chlorine derivatives activities sold to Kerling (through INEOS ChlorVinyls) in June 2011. 2010 figures are re-stated to reflect the disposal.
x y
ee ff
Excludes Winchester segment. ncludes Arch acquisition on 20 I October, 2011. gg Includes operating results from International Specialty Products from date of acquisition (August 2011), and excludes Ashland Distribution, divested in March 2011. hh Financial year end 28 October, 2011. ii Formerly known as Cementhai Chemicals.
Reasons for exclusions
PetroChina Does not segment chemicals from refining business. Repsol No longer discloses its chemical figures. OMV Includes petrochemical operations in its refining and marketing segment. Shanghai Petrochemical Majority
owned by Sinopec. Koch Does not segment chemical data. Samsung Total Sales equity accounted in Total and Samsung figures. ChemChina Accounts not made public by the company. China Blue Star Chem Majority owned by ChemChina. Formosa Plastic Corp US Not segmented in Formosa reports. Formosa Petrochemical Corp Does not segment chemicals from its refining business. Nan Ya Plastics Sales a mixture of chemicals and processed items. Yeochon NCC Results included with Hanwha and Daelim. Daelim Below Top 100 in sales because Yeochon NCC is accounted as
an equity company. Samsung Does not consolidate various chemicals-company interests into one area. Hanwha Chemical 2011 accounts not yet made public by the company. Flint Group Accounts not made public by the company. Lubrizol Acquired by Berkshire Hathaway on 16 September, 2011; Lubrizol business not segmented. PIC Accounts not made public by the company.
Exchange rates
Key financial exchange rates used for 2011 data (2010 in parentheses): €/$ 1.296 (1.325) based on 31 December year end; $/Yen 82.9 (82.8) based on 31 March year end.
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10-16 September 2012 | ICIS Chemical Business | 33
ANALYSIS
Rank 2011 Company $m
Sales % Change Reporting currency in $ -5.8 -1.0 -6.6 1.6 5.4 -9.0 -1.1 11.7 -6.7 -0.7 5.3 32.1 20.5 11.2 11.8 22.0 33.5 7.7 4.7 11.7 3.7 -4.6 10.7 -5.8 12.7 33.3 3.4 0.3 18.1 18.5 22.9 24.2 11.6 14.3 8.7 31.3 13.3 7.2 1.1 -7.2 24.7 27.1 53.8 7.6 82.7 -1.3 3.3 19.7 0.2 14.5 22.8 13.3 11.5 19.9 11.6 14.2 18.3
Operating profit $m
2011
Net profit $m
2011
Total assets % $m 21,840
Change
R&D % $m 431
Change
Capital spending
Employees
%
$m
2010
$m
2010
% $m 969 822
Change Numbers Change
32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83
SK Energyi Shin-Etsuc PPG Industriesj Asahi Kaseic/k DSM Sekisui Chemicalc Sasoll LANXESS Praxair Mosaicm Huntsman BPn NPC (Iran)c/o Teijinc Air Productsz Henkel (Adhesive segment)p Formosa Chemicals & Fibre (Taiwan)q Borealis DICc Sherwin-Williams Potash Corp Versalis (part of ENI)i Tosohc Clariantr Arkemat Eastman Chemical ICL Ecolabu Celanese K+Sv ALPEK (Grupo Alfa)w Ashlandz/gg Dow Corning Wacker-Chemie Formosa Plasticsq Styron SCG Chemicalsii CF Industries Oricaz Indorama Venturesaa Taiyo Nippon Sansoc Kanekac Honeywellbb Mitsubishi Gas Chemicalc NOVA Chemicals Tasnee Momentive Specialty Chemicalsy PKN Orlena/i Occidental Chemicala/i Airgasc Showa Denkoa/i Petronasi
13,000 12,643 12,088 11,913 11,646
669 1,806 594 1,203 659 1,295 1,006 2,468 2,612 606 1,120 1,063 411 1,622
346 1,802 959 1,063 596 730 804 2,082 2,664 410 1,232 691 586 1,389 857 145 1224 642 304 1029 20,470 -18.9 9,197 14,291 0.0 5.8 3 384 119 324 1206 1729 439 190 463 1775 -113 121 168 460 438 1025 530 377 595 141 866 650 1758 754 349 1271 366 154 140 229 263 393 214 8,552 9,676 6,910 6,184 7,283 8,518 7,849 4,091 414 806 457 1339 355 13,571 8,083 2,577 5,596 8,975 7,434 4,623 7,325 5,636 5,402 149 615 651 118 7,183 6,208 3,108 3,790 313 250 5,321 3,976 -2.4 75.0 8.2 3.3 14.1 2.9 6.3 27.2 89 224 3.5 2.4 7.3 10.9 -3.7 1.7 2.5 10.4 77.9 -1.8 2.5 9.4 3.1 11.4 -0.9 -15.6 7.6 -3.0 41 70 10.8 6.1 370 282 313 158 277 139 187 241 357 114 16.1 50.0 -25.2 25.4 -20.1 16.8 -68.5 -2.8 39.3 -65.5 15,000 7.1 5,300 -11.7 2,450 0.2 46 24.7 247 646 196 -4.2 27.2 142.7 2,400 14,000 0.0 0.0 1,012 23.7 188 171 158 72 96 96 23 48.7 4.9 3.9 12.6 9.1 37.1 26.1 12,059 7,941 8,146 5,229 16,257 -7.0 6.4 -4.1 1.2 4.6 42 4.5 118 5.9 314 287 154 2,176 280 234 394 549 457 496 342 349 356 44 201 144.0 19.1 22.8 4.7 -15.9 -30.3 88.4 31.6 88.1 48.6 31.0 73.6 36.6 -21.3 4.7 22,149 12,937 10,000 11,910 40,200 7,600 14,496 4,502 15,000 12,000 17,168 5,362 2,100 36.9 18.1 0.0 7.9 51.7 4.8 2.2 10.5 3.4 33.3 5.2 6.5 5.0 33,000 5,703 5,804 3.1 4.0 -2.8 -3.2 0.9 3.6 6.0 656 334 1,352 213 -27.7 8.5 31.1 33.6 11,206 18,778 18,900 24,105 5,258 5,160 -5.5 7.0 3.3 0.7 7.2 1.7 656 1672 1930 247 502 1195 2515 27 8,657 -0.7 166 9.9 330 39.8 12,000 -7.7 8,913 16,356 18.7 7.1 187 90 21.4 13.9 880 1,797 32.5 29.5 1055 339 672 285 14,458 9,981 4.1 4.6 494 15.0 1214 1209 1.4 -4.3 -31.7 30.1 12.1 22,000 20,855 9,787 16,390 26,184 0.4 5.5 0.0 11.9 -0.3 16,167 -18.2
12,620 11.7
618
11,576 17.0 11,372 23.2 11,252 11.2 11,108 11.8 11,041 22.0 10,832 33.5 10,419 10,310 10,038 9,271 9,196 8,861 8,766 8,715 8,412 8,292 7,853 7,646 7,178 7,068 6,799 6,763 6,675 6,509 6,502 6,427 6,362 6,194 6,193 6,116 6,098 6,025 5,899 5,761 5,663 5,659 5,457 5,241 5,239 5,207 5,136 4,815 4,746 4,593 4,576 7.7 4.7 6.0 -4.6 13.2 -5.7 12.7 33.3 5.7 0.4 3.5 21.2 22.9 24.2 11.6 14.3 11.2 48.4 13.3 7.2 3.4 -7.2 24.7 33.7 53.8 6.4 92.1 -1.3 3.4 19.7 0.3 14.5 22.9 13.3 29.8 19.9 11.6 14.2 23.9
10,082 11.7
369 422 784 4,306 -549 286 540 929 1,021 1,926 754 690 1,233 579 130 792
463 449 749 2,597 -114 405 342 733 862 1,346 807 503 953 387 249 1,064
656 219 442 3081 -270 113 242 -25 696 1512 463 607 731
18,241 274.4
12,966 36.1
11,177 24.8
2,791 1,002 388 375 159 1,042 110 1,007 1,442 368 4 861 556 67
896 900 344 428 256 749 281 597 837 546 165 438 469 95
1539 626 489 256 65
10,647 15.1
34 | ICIS Chemical Business | 10-16 September 2012
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Rank 2011
Company $m
Sales % Change Reporting currency in $ 21.7 1.6 1.9 2.7 27.2 -7.6 -3.3 34.3 22.5 11.2 11.7 15.0 14.1 8.1 34.4 8.4 -4.4 19.0 1.5 1.8 2.7 21.1 5.4 -3.4 27.8 22.5 11.1 11.7 15.0 14.1 8.0 19.0 8.4 2.6
Operating profit $m
2011
Net profit $m
2011
Total assets % $m
Change
R&D % $m
Change
Capital spending
Employees
%
$m
2010
$m
2010
% $m
Change Numbers Change
Compania Espanola de Petroleos (CEPSA)i 85 Kurarayc Kagaku Kogyo 86 Denki (Denka)c 87 JSRc 88 SIBURs 89 Givaudan Chemical 90 Daicel Industriesc 91 EuroChem 92 Valsparhh 93 Nippon Shokubaic 94 RPMm 95 Rockwood Holdings 96 Westlake Chemical 97 Ubea/c 98 Mexichem 99 FMC 100 Asahi Glassa 84
4,489 4,452 4,401 4,223 4,195 4,171 4,126 4,103 3,953 3,870 3,777 3,669 3,620 3,563 3,392 3,378 3,224
660 250 434 654 472 246 1,371 -40 375 396 567 447 341 587 234
641 297 472 585 519 395 854 376 360 345 358 378 347
380 137 319 268 143 1001 -139 257 216 411 259 364
347 173 333 318 203 656 222 255 189 239 221 285 173
6,314 4,858 5,197 7,156 4,805 6,401 3,500 4,301 3,560 4,588 3,267 4,335 3,744 3,327
3.1 0.0 10.2 10.7 -3.2 30.5 -9.5 8.1 1.3 -2.9 10.6 5.5 12.8 6.6 105 4.7 115 134 45 59 15.2 6.2 10.0 19.9 313 -0.2
444
96.8
200 199 202 744 67 252 72 280 177 215 190 253
24.4 77.8 47.1 11.0 -1.8 36.4 80.9 55.1 117.5 21.0 33.2 37.8 9,700 9,700 1,811 11,173 5,000 2.0 7.8 1.0 -3.3 20,801 10,020 6.1 -1.6 8,913 3.4
387 215
366
BuBBLING uNDEr
Rank 2010 Company $m Sales % Change Reporting currency in $ 14.4 20.1 -2.8 5.1 14.2 11.8 9.6 42.1 21.4 0.4 9.2 2.1 6.3 5.0 13.9 22.6 1.9 32.6 -3.3 20.2 14.4 2.6 17.2 7.5 5.3 14.4 20.1 -2.9 -7.0 14.2 11.8 9.6 42.1 21.4 0.0 9.2 -0.1 6.3 2.7 13.9 8.4 1.9 32.6 -8.0 20.2 11.8 2.6 17.2 7.5 3.0 587 278 233 205 428 136 243 453 142 344 7 98 338 66 811 404 281 415 400 174 207 416 97 6 414 262 157 128 85 320 24 554 331 305 61 237 32 554 262 191 87 227 6 387 78 201 1,414 1,282 1,441 1,956 3,526 2,594 -8.0 8.2 0.4 15.4 -0.3 0.7 24 114 33.3 4.6 2 36 30 7.1 7.1 11.4 87 49 73 501 105 121 71.7 13.1 62.6 49.1 59.1 23.9 3,400 5,313 3.0 7.6 2,586 3,722 5,120 5.3 3.9 1.7 464 164 173 182 267 -124 121 165 -141 228 324 312 163 154 264 27 -132 145 -64 94 3,165 3,396 -3.9 8.1 78 6.8 111 128 16.8 4.9 4,750 0.7 3,204 7,480 2,081 3,468 2,966 1,788 3,766 4.4 46.2 24.5 2.9 3.2 -20.5 1.3 77 100 37 51 220 15 26 32.8 -5.5 9.2 -6.7 0.5 5.8 12.9 191 264 54 127 128 138 93 152.5 -13.4 37.0 27.8 19.9 -11.1 -5.7 4,260 11,001 4,700 5,006 5,644 7,457 4,072 6.0 32.9 17.5 0.6 2.4 -9.7 3.4 273 227 234 38 388 -883 426 -1,215 Operating profit $m
2011
Net profit $m
2011
Total assets % $m 1,644 4,497 3,764 7,857 3,141 3,537 2,855
Change
R&D % $m 69
Change
Capital spending
Employees
%
$m
2010
$m
2010
% $m 66 142 174 45.3 25.4 -12.8 113.0 0.8 24.2 3,744 6,300 13,541 4,100 5,500 4,500
Change Numbers Change
101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125
Georgia Gulf W.R. Grace Zeonc Pemexi Cabotz Cytec Industries Chemtura Industries Qatarcc Albemarle Lonzaff PolyOne Kemira IFF Tessenderlo Groupdd Makhteshim-Agan Industries Tata Chemicalc Momentive Performance Materialsy Methanex IRPC Public Company Limitedi Petkim Petrokimya Holding Fuchs Petrolub Ferro SQM Solutia Altana
3,223 3,212 3,172 3,114 3,102 3,073 3,025 2,966 2,869 2,868 2,864 2,860 2,788 2,755 2,691 2,675 2,637 2,608 2,372 2,330 2,162 2,156 2,145 2,097 2,095
125
114
58 269 231 -912 236 208 119
43 207 221 -1195 154 172 -586
-1.3 5.3 7.3 -11.1 8.8 -3.7 -2.0 66 85 43 1.5 16.7 2.4 13.6
3.5 5.0 0.0 5.1 -8.3 7.1
230 117 154
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10-16 September 2012 | ICIS Chemical Business | 35
ANALYSIS
ICIS Top 100 gains driven by prices
Higher prices translate to sales gain and improved profitability for the ICIS Top 100 chemical companies. We also highlight capital spending patterns
D
Ecolab
REGAN HARTNELL LONDON
espite many headwinds, the global chemical industry has surged to a new record level of chemical sales. The ICIS Top 100 chemical company listing shows that the top 100 had combined sales of $1.40 trillion (€1.08 trillion) in the 2011 financial year, representing growth of 13.4% compared with 2010. Top 100 sales in 2010 were almost 24% greater than in 2009, when chemical sales suffered greatly amid the 2008–2009 financial crisis. Year-on-year sales growth in 2011, albeit
TOP GAINS
Top 100 rankings gained this year over last
down from the surge in 2010, is still close to 1.5 times the 9.0% average level of annual growth seen since 2000. The ICIS Top 100’s $1.4 trillion of chemical sales represents 35.2% of the $3.98 trillion worth of global chemical production (excluding pharmaceuticals), according to the American Chemistry Council.
SALES MIRROR IPEX The rise in 2011 sales was mostly in line with the level of growth suggested by the dollar-denominated ICIS Petrochemical Index (IPEX), which suggests that sales growth was primarily attributed to higher
BiG BoTTom LiNE
Top five net profits in the Top 100, $bn
chemical prices rather than to any significant additional volume growth. The IPEX is a monthly calculated, capacityweighted index that tracks the price levels of a basket of 12 commodity-type chemicals and polymers in each of three regions – Asia, Europe and the US. By using a similar methodology and the average IPEX reading for the first seven months of 2012, this forecasts a level of sales in 2012 of around $1.36 trillion, or a decrease in chemical sales of just under 3%. The continued worries about the financial stability and fate of the eurozone, the health of
Top INNoVAToRs
Top five R&D expenditures as a % of sales
22 22 20 15 10
BASF SABIC ExxonMobil DuPont Potash Corp
8.0 7.8 4.4 3.5 3.0
Merck KGaA Syngenta Givaudan DuPont Bayer
14.8% 8.5% 7.5% 5.2% 5.1%
Xxxxx Xxxxx Xxxxx Xxxxx Xxxxx Xxxxx
Indorama Ventures Solvay CF Industries Sasol
ICIS TOP 100 SALES TRACK IPEX ON PRICE INFLATION
Sales, $bn
1,600
TOP 100 SALES GROWTH
IPEX
400
Percentage Xxxxx xxxxxx
25 Xxxxx xxxxxx Xxxxx xxxxxx 20 Xxxxx xxxxxx 15 Xxxxx xxxxxx Xxxxx xxxxxx 10 5
Top 100 chemical sales IPEX index (1993=100)
1,200 300
FORECAST
800
200
0 -5
100
400
-10 -15
Year on year sales growth Average growth 2001 2011
0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
0
-20
36 | ICIS Chemical Business | 10-16 September 2012
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Average operating profit margin for the top 20 companies in the listing was 9.7%, higher than the average 8.0% margin since 2001
the US economy and continued growth in emerging markets have capped volume growth and demand-pull price rises in the first two quarters of 2012. Price increases reflected in the IPEX have generally resulted from higher feedstock costs flowing through to increased product prices.
The only producers to declare negative operating profit margins are the Italian producer Versalis (formerly Polimeri Europa), which suffers from some legacy operating issues, and US-based Valspar as it struggled with a multiyear downturn of the US construction sector.
OPERATING pRoFiT MARGINS RISE The average operating profit margin (operating profits to sales ratio) for the top 20 companies in the listing was 9.7%, higher than the average 8.0% margin since 2001. It was the second consecutive operating profit margin increase since the 2009 slump. For the second year running, fertilizer producers have returned the best operating margins and have dominated half of the top 10 places in the winners and losers chart. Although well down from their pre-crisis peak, fertilizer prices have remained resilient due to strong demand from emerging nations. After its reorganisation and release of company financials, Russian chemical producer Sibur has ousted Middle East producers from the top margin spot for petrochemical producers, although Saudi Arabia’s SABIC 50 does feature in the top 10. Understandably, a handful of 40 Japanese companies are among the worst performers at 30 the operating level, as they were greatly affected by the disastrous tsunami of early 2011 20 and are still facing difficult operating conditions of reduced electricity supply 10 after the shutdown of nuclear generating capacity.
0
FERTiLiZERS SPEND BIG For the second year running, the biggest spenders were dominated by fertilizer producers and industrial gas companies, as represented by an analysis of the ratio of capital expenditures to revenue levels. Fertilizer producers are undergoing a multi-year capital investment cycle to bring new fertilizer capacity on stream. Industrial gas companies are seeing strong
WINNERS AND LOSERS
Percentage
50
demand for their products from Asia and higher levels of capital expenditures are an integral part of their business model to supply their customers with their gaseous needs. Sibur is the only petrochemical producer to feature on the big spender chart, as it has ambitious investment plans to supply a strongly growing Russian market. On an absolute level, the larger petrochemical companies show their presence. Germany-based BASF takes top spot with close to $4.5bn worth of investment in 2011, followed by SABIC, USbased Dow Chemical and China’s Sinopec, each with $2bn–3bn of expenditure. ■
Visit the landing page for this year’s Top 100 chemical companies listing and analysis on the ICIS website at icis.com/top100chem
Top 10 and bottom 5 operating margins 40 30 20 10 0 -10
Ind CF us trie s
ic
Ch Mits em ui ica ls Sh De owa nk o
Ch NOV em A ica ls
Po t Co ash rp
ICL
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P Or KN len
sa
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12 10 8 6 4 2 0
Top 20 operating margins Average margin
25 20
Ve rsa li
SIB U
he
SA B
sa
Percentage
s
ICL
ic
IC
m
R
Va ls
Mo
s
AVERAGE OPERATING MARGINS OF TOP 20 PRODUCERS -10
FERTILIZER COMPANIES INVEST TO FEED A HUNGRY WORLD
Percentage
Eu r
Eu
Ve rs
SA
roC
Mo
ali s
UR
pa r
Xxxxx
Capital expenditure as % of sales
Xxxxx Xxxxx Xxxxx
15
25
Xxxxx
10 5 0
20
15
UR Eu Ch ro em Pra xa ir W -Ch acke em r ie Alb em arl e Liq Air uid e Ori ca So lva y Ku rar ay Li Gronde up Ch LG em As Gla ahi LA ss NX ES S Sh inEts u Ro ck wo od Air ga s Ar k em a
Po t Co ash rp
ICL
2001
10
2011
5
www.icis.com
Po t Co ash rp SIB UR E Ch uro em Pra xa ir Wa c he ker mi e em arl e Liq Air uid e ica lva y ray
0
10-16 September 2012 | ICIS Chemical Business | 37
Li Gr nde ou p L Ch G em As Gla ahi ss an xe ss inEts u kw oo d Air ga s rke ma ICL As Ka ahi se i Or So ura
As Ka ahi se i
SIB
EUROPE ETAC
Ethyl acetate prices are expected to continue rising as global feedstock costs remain high 14
ASIA PMMA
Prices face downward pressure on weak demand and upcoming supply in Japan 43
10-16 September 2012
Periodicals Entry
Chemical Business
ANALYSIS OF CHEMICAL MARKETS
IN ASSOCIATION WITH
We present the ICIS Top 100 Chemical Companies, a ranking of the world’s largest chemical producers. Sponsored by DKSH, the listing – based on 2011 sales – reveals some surprises. Revenues and profits rose again, backed largely by price gains. Germany’s BASF led the pack with $95.2bn in sales, while China’s Sinopec made major strides to capture the number two position, edging out US-based ExxonMobil Chemical. On page 36, the ICIS data team slices and dices the statistics.
www.icis.com
30 It was a year of contrasts, with strength in the first half of 2011 overshadowed by weakness in the second half. Yet it was a record year for sales for the Top 100.
RECOrDS FALL
33 The list of the world’s top chemical producers shows some big movers. See who made the cut and also those “bubbling under” down to number 125.
ICIS TOP 100 rANKiNG
36 Sales for the Top 100 chemical companies largely mirrored the ICIS Petrochemical Index. See the forecast for 2012 sales. Is bigger better? Plus, operating margins of the Top 20 reveal an interesting picture.
TOP 100 DriVEN BY PriCES
10-16 September 2011 | ICIS Chemical Business | 29
Gareth JJ Burgess
ANALYSIS
NIGEL DAVIS LONDON
W
hile on paper it was a good year for the chemical industry, 2011 will be remembered for all the wrong reasons. Having started with such promise, it soon began to run off the rails. Oil prices climbed but demand growth slowed. By the end of the year, manufacturing industry activity globally was subdued and chemical demand had fallen away. But sector companies’ financial results for the calendar year reflect the strength of the first half of 2011, rather than the slump in the fourth quarter. Some companies produced record financial results. At the start, chemical companies were convinced that 2011 would be a strong year, with demand driven by a recovering US economy and growth in the important China market. But sector growth estimates were revised downward sharply by mid-year. Earnings reflected the changing macroeconomic and industry environment. For upstream players, particularly, the third quarter was difficult, and the fourth quarter even harder. ICIS collects financial information on the leading global chemical companies for its Top 100 chemical company listing and analysis. The listing by sales in 2011 reflects a world that continues to change, with emerging market players showing the strongest year-onyear growth. Some chemical producers hit new sales records in 2011 as rapidly growing international markets compensated for quickly contracting growth in the US and, particularly, in Europe.
Some companies have vaulted up the rankings
EUROZONE IMPACT The eurozone sovereign debt crisis began to weigh heavily on markets and national economies as the year progressed. Chemical industry players, as suppliers of vital intermediates for manufacturing, construction, transport and consumer products, felt the squeeze on all fronts. The upstream chemical participants and, particularly, those involved with
Records fall in year of contrasts
Profits and sales surged ahead in 2011 and companies with Asia exposure shot up the ranks. Sinopec rose two places to become the second-largest chemical company
30 | ICIS Chemical Business | 10-16 September 2012 www.icis.com
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more basic chemicals, petrochemicals and plastics, were the first to respond to changing market conditions. Volumes suffered in some sub-sectors in the second quarter, while others followed suit later on. The third-quarter slowdown was most noticeable in the financial results of upstream petrochemical producers squeezed by still-high oil-based raw material and energy costs and starting to feel the negative impact of lower sales volumes. During the course of the year, producers gained more on price than on volume. The important emerging markets underpinned growth, while well-established markets and important end-use sectors, such as construction, struggled.
DKSH MaRiO PREisslER GLObaL HeaD, PerfOrmaNce MateriaLs
A MESSAGE FROM OUR SPONSOR
The ICIS Top 100 Chemical Companies highlights businesses that have successfully dealt with the challenges of the global market. Our sponsor, DKSH, gives a view on how it can help chemical companies to grow their business in new and existing markets. DKSH Business Unit Performance Materials, a leading specialty chemicals distributor, is honoured to be the sponsor for the ICIS Top 100 Chemical Companies. As an industry, chemical distribution will see continued growth, especially since chemical producers are strengthening their global reach and further expanding their business to the fast growing markets, especially in Asia. Another visible trend is that outsourcing of key activities by chemical producers is increasing – a trend that is opening many new opportunities. DKSH is ranked No 3 in Asia in the ICIS Top 100 Chemical Distributors list, published in July 2012, and we
STRONG PERFORMANCE Against the backdrop of what turned out to be a difficult year, and certainly one of contrasting quarters, most producers in the Top 100 nevertheless performed well. The year started with cash flowing and companies determined to keep costs under control. Working capital was being managed effectively, while some took the opportunity to pay down or reschedule debt. The ICIS ranking by sales shows that the Top 100 players – those with sales of $3.2bn plus – saw healthy sales growth of more than 12% in 2011. The upstream petrochemical players showed the strongest growth for the year, having pushed sales much higher in the first half as volume demand increased. These companies in particular were able to push their product prices higher as oil prices climbed and feedstock naphtha costs rose. In rough terms, petrochemical prices tend to follow the price of crude oil, whether the feedstock is oil- or natural gas-based. Product portfolios and regional growth characteristics continue to shape the ICIS Top 100 table. The upstream petrochemical producers achieved particularly strong growth in 2011, while specialty chemical makers tended to grow at a slower rate. Once again, however, the quarter-to-quarter dynamics of the results are masked in the annual figures. The ICIS Top 100 Chemical Companies listing by sales reflects continued mergers and acquisitions (M&A) activity in the sector, as well as diverse regional growth dynamics. ASIA GROWTH REFLECTED The growth and influence of Asian companies is the story behind changes in the 2011 rankings. China’s largest petrochemical producer, Sinopec, continued to grow strongly during the year, with its chemical segment sales up by 28.9% in local currencies, and by 34.9% higher in US dollars. We include the chemical segments of the major oil companies in the ICIS Top 100 listwww.icis.com
“As an industry, chemical distribution will see continued growth”
aim to continue consolidating our leadership position in the region. We have been at home in Asia for nearly 150 years, reliably safeguarding the interest of our business partners. DKSH is already a leader in its traditional strongholds such as Southeast Asia and Japan. In Japan we are the strongest non-Japanese chemical distributor. Our strategy is to grow our leading position across Asia by strengthening operations in China, India, and Korea.
Our clients, leading chemical producers, appreciate our unparalleled geographical spread covering the whole of Asia (and Western Europe), as well as our application- and service-driven business model, which enables us to work and think like a specialty chemicals company. Our specialists act in the market on behalf of key clients as if they were their employees. They are supported by a Key Client Management team providing a single point of contact while still leveraging our group’s network and resources for our clients’ best interests. To support the philosophy of offering more than just distribution, we have opened a series of innovation centres – presently totalling 23 globally; 20 of these in Asia. In these centres, DKSH technical specialists work on new and improved formulations to meet and anticipate clients’ and customers’ needs. ■ Visit us at: dksh.com/ chemicaldistribution and youtube.com/DKSHGroup
ing and analysis. We convert reported financial data to US dollars at the relevant financial year-end exchange rate, so the strength of certain currencies against the dollar plays a part in the rankings. Columns in the ICIS Top 100 table give year-on-year sales and profits percentage changes in US dollar and reporting currency terms. Other major Asia players making important gains in 2011 were Thailand’s PTT Global Chemical, which represents the combined businesses of the former PTT Chemical and PTT Aromatics, and Indorama, one of the most prolific acquirers of assets in the chemical industry over the past two years. South Korea’s Honam Petrochemical saw sales jump by 47.6%, while petrochemical sales for India’s Reliance Industries increased by 28.2%. Fertilizer makers also grew strongly in 2011, as did important regional players in chemicals such as Mexichem, Russia’s SIBUR, Brazil’s Braskem, Poland’s PKN Orlen and Saudi Arabia’s SABIC. The major changes in rankings by sales in the ICIS Top 100 largely reflect these gains.
SINOPEC cLImBS LADDEr Sinopec’s petrochemical operations jump two places in the table to claim second place behind leading industry giant BASF despite strong growth by others in this leading group of producers. US-based Dow Chemical slips to fourth in the table from second last year, reflecting its realignment as a more specialty-oriented materials producer. Five companies showed sales growth of more than 40%; 12 achieved growth of more than 30%. Not surprisingly, perhaps, the strongest top-line growth was shown by Asian companies and fertilizer producers. However, petrochemical groups based outside Asia but with a strong presence there also did well. Only 12 of the Top 100 companies saw sales contract in 2011. Among them were some of Japan’s leading chemical producers that were hit hard by the earthquake and tsunami that struck the north-east of the country’s main island. M&A activity helped push Belgium’s Solvay and PTT Global Chemical into the top ❯❯
10-16 September 2012 | ICIS Chemical Business | 31
ANALYSIS
❯❯ 30 group in 2011. France’s Rhodia is no longer included in the rankings, having merged with Solvay in 2011.
PETROCHEMICALS GAIN Volume demand growth earlier in the year and pricing power helped the large petrochemical producers make gains in 2011, despite the fourth-quarter slump. In 2011, the West Texas Intermediate (WTI) oil price fluctuated between $75/bbl and $112/bbl, with the high point early in the second quarter and the low point at the start of the fourth quarter, and lower prices in the second half of the third quarter. The ICIS Petrochemical Index (IPEX), which reflects prices of a group of 12 important petrochemical and polymer products in three regions, moved from 300.45 in January to a peak of 374.94 in June and then down to 300.78 by December. Producers in Europe tied to naphtha and other oil-related feedstocks faced a challenge in passing their feedstock price increases on to customers in polymers and intermediates downstream from the cracker. Companies cracking ethane in the Middle East continued to achieve high returns. Those cracking ethane in the US benefited greatly from low and competitive ethane prices brought about by the North American shale gas revolution. US fertilizer producers also benefited greatly from low natural gas prices in North America, but were also boosted by demand growth. Intermediates and specialty chemical makers were squeezed by higher upstream chemical costs but, once again, demand in the first months of the year helped them to retain and increase prices. Industrial gases producers, which are also included in the ICIS Top 100 analysis, made the most of the industrial demand for gases in the emerging economies, particularly China.
China’s Sinopec grew strongly during the year, to reach second place in the listings
PROFITS RISE Volume demand growth, lower costs and higher prices translated into increased profits for most chemicals players in 2011. Earnings before interest and tax (EBIT) surged for CF Industries, Agrium and Occidental Chemical of the US, and for Norway’s Yara International and South Korea’s SK Energy, as well as Sinopec. Profits data are not available for all the companies listed in the ICIS Top 100, but the table shows both EBIT and the net profit results. We also list the important assets, spending and employee data on which the ICIS Company of the Year award is based. The winner will be announced in our 24 September issue. ICIS collects a considerable amount of financial data on the major chemical companies, not all of it shown in the table published
in ICIS Chemical Business. The additional data are available on request. The strongest operating profit margins (operating profits to sales ratio) in 2011 were shown by the fertilizer producers – Potash Corp of Saskatchewan, CF Industries and EuroChem. Russia’s SIBUR and SABIC also produced strong operating margins, as did industrial gases companies including Germany’s Linde, and Praxair of the US. The ICIS Top 100 data also show that companies were using their cash to add new production capabilities in 2011. Capital spending across the Top 100 companies listed in 2011 increased by an average of 28%. ■
To access the 2012 ICIS Top 100 chemical companies listing package online, visit icis.com/top100chem
FootNotES
C hemical segment figures. Includes inter-segment revenues, e.g. revenue for sales of by-products to other divisions. For ExxonMobil, inter-segment revenue was $22.8bn in 2011 and $18.1bn in 2010. For Sinopec = external sales with inter-segment sales. Ube figures = Chemicals & Plastics + Specialty Chemicals & Products. b 2 010 finances are based on the sum of predecessor and successor components after emergence from bankruptcy, 30 April, 2010. c Financial year-end 31 March, 2012. d Net sales includes inter-segment sales; data excludes HealthCare division (2011 sales €17.2bn; 2010 sales €16.9bn). e Excludes real estate and energy busi ness areas.
a f
Linde Gas & Engineering sales, operating profit and employee figures only. Pro-forma results include the acquisi tion of Rhodia from January 2011. h PTT Global Chemical Public Company Limited was formed by the amalgamation of PTT Chemical Public Company Limited and PTT Aromatics and Refining Public Company Limited and was registered as a new entity on 19 October, 2011. i Petrochemical figures. For SK Energy, the sales revenue figure includes inter-segment sales. j O ptical segment and glass segment figures have not been included. k A sahi Kasei excludes homes and healthcare segments. l F inancial year-end 30 June, 2011 – business segments’ total turnover
g
figures: polymers, solvents, olefins, surfactants, waxes and nitro used. Financial year-end 31 May, 2012. n I CIS estimates. BP Petrochemicals figures only. Revenue represents third-party sales as well as other operating revenues and excludes the sales made by joint ventures, which are equity accounted. BP’s underlying replacement cost profit, excluding joint venture interests in Europe. o Net sales figure. The total of NPC and its associated companies in 2011 is $25bn. p A dhesive Technologies segment only. q N et profit is pre-tax. r Sud-Chemie sales consolidated for the eight-month period following acquisition in April 2011. s A ll figures for SIBUR are based on
m
combined financial information, which excludes results of the mineral fertilizers and tires businesses divested by SIBUR in December 2011. t 2011 and 2010 figures (re-stated) exclude the vinyl products business segment, announced as having been sold to the Klesch Group. u N alco was fully acquired by Ecolab in December 2011. v 2 010 income statement and cashflow statement adjusted to reflect disposal of the COMPO business. 2011 figures refer to continued operations, excluding COMPO, which was sold to Triton with effect from 18 October, 2011. w I ncludes the assets and results of the operations acquired from Eastman Chemical, from 1 February, 2011.
32 | ICIS Chemical Business | 10-16 September 2012
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Rex Features
IN ASSOCIATION WITH
ThE ICIS TOP 100
Rank 2011 Company $m
Sales % Change Reporting currency in $ 12.5 34.9 20.7 11.8 24.0 24.9 18.5 1.2 20.5 -20.3 9.6 4.2 -1.8 4.8 12.6 20.1 3.1 4.8 7.1 4.8 16.0 4.4 11.9
Operating profit $m
2011
Net profit $m
2011
Total assets % $m 79,277 27,107 69,224
Change
R&D % $m 2,080
Change
Capital spending
Employees
%
$m
2010
$m
2010
% $m 4,419 2,385 1,450 30.9 111,141 21.9 -34.5 26.2 51.7 -33.9 -21.6 -1.5 22.2 29.2 1.5 -32.3 29.6 31.2 9.4 70.1 18.4 21.0 10.3 18.9 -0.7 29,121 40,227 46,200 32,421 50,417 7,164 57,240 53,979 70,000 12,807 1,098 41,665 56,100 51,705 14,000 40,000 71,607
Change Numbers Change
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
BASF Sinopeca ExxonMobila Dow Chemical LyondellBasell Industriesb SABIC Shella Mitsubishi Chemicalc DuPont INEOS Totala Bayerd Sumitomo Chemicalc AkzoNobel LG Chem Johnson Mattheyc Torayc Air Liquide Evonika/e Linde Groupf Braskemx Mitsui Chemicalsc Solvayg PTT Global Chemical Public Co. Ltd.h Reliance Industriesc/i Agrium Honam Petrochemical Chevron Phillips Chemical Yara International Merck KGaA Syngenta
95,245 15.1 65,752 28.9 64,731 20.7 59,985 11.8 51,035 24.0 50,636 25.0 46,963 18.5 38,713 1.3 37,961 20.5 27,529 -18.5 26,839 12.1 24,975 23,505 20,342 6.5 -1.7 7.2
11,127 10,286 8019 4,018 5,875 3,601 3,998 2,240 5,996 2,802 2,944 4383 2402 2147 2054 1,576 4,282 1,849 903 1,241 732 1,350 2,448 694 1,300 3,157 2,498 4,160 1,036 260 2,735 3,711 1,528 1,278 1,152 1,062 1,616 2,520 449 1,209 2,987 1,987 3,877 1,937 490 1521 -277 -12 1069 952 1873 505 775 1989 67 428 3474 240
6039 4913 1970
0.7 3.3 -0.5 -9.7 5.2 -3.7
5.2
1.8 9.1 4.4 0.0 21.2 0.2 16.7 -6.4 0.0 0.7 3.0
22,677 18.5 1,646 196 219 1,672 1,956 -0.8 27.3 25.7 5.8 18.5
2,687 1,050 2,838 634 1,402 1,843
10151 22,839 5741 1511 1009 3031 -32 38,301 88,736
13,023 10,105 7797
48,492 20.0 14,714 -17.9 34,766 2.7 -1.4 -3.3 0.1 0.8 4.7 5.2 -3.4 -3.1
1,275 63 461
-2.5 1.9 4.2
1,367 200 917 1,896 241
295 1965 291 699 1860 1332 1138 300 538
28,201 25,748 5,227 19,084 31,262 37,471 20,056 15,160 11,823 8,341
19,580 16.5 19,252 20.4 19,170 18,735 18,308 17,867 17,546 15,996 15,937 28.2 15,470 44.0 14,169 47.6 13,935 24.4 13,441 22.9 13,317 10.6 13,268 14.0 3.2 7.2 9.6 7.1 4.5
13,199 16.6 621 326 473 127 53 283 10.4 4.7 5.6 1.9 12.1 56.9
1,138 2,274 980 1,743 1,209 541 1,654
3.8 6.0 -2.7 4.1 6.1 73.5
21,958 -19.3
17,813 30.1 16,449 14.4
15,634 131.8
13.4 44.0 47.6 24.4 19.7 8.2 14.0
1,781 2,223 1,449
2,121 1,113 1,122 1375 1022 1970 713 812 1388 1499 838 1397
-17.9 1.9 22.2 7.7 21 1,966 1,127 17.5 6.2 9.2 26 23.8
432 663 867
254.1 50.3 -41.8 14,800 1,657 4.6 6.4
13,140 9,318 8,634 28,665 17,241
2,215 1,277 2,051
1,282 1,476 1,793
2018 800 1599
12,361 10.0 -3.4 -0.3
485 475 479
-8.6 -9.6 21.0
7,627 40,676 26,333
3.8 0.3 0.1
2 010 figures re-stated. M omentive companies listed separately as fiscal-year 2011 financials for the Momentive holding company have not been filed. z F inancial year ending 30 September, 2011. aa Adopted new and revised Thai finan cial reporting standards (TFRS) from 1 January, 2011. Figures for 2010 restated according to new standards. bb Specialty Materials figures used. cc Figures are for petrochemicals and fertilizers only. dd Figures exclude PVC/chlor-alkali and part of the organic chlorine derivatives activities sold to Kerling (through INEOS ChlorVinyls) in June 2011. 2010 figures are re-stated to reflect the disposal.
x y
ee ff
Excludes Winchester segment. ncludes Arch acquisition on 20 I October, 2011. gg Includes operating results from International Specialty Products from date of acquisition (August 2011), and excludes Ashland Distribution, divested in March 2011. hh Financial year end 28 October, 2011. ii Formerly known as Cementhai Chemicals.
Reasons for exclusions
PetroChina Does not segment chemicals from refining business. Repsol No longer discloses its chemical figures. OMV Includes petrochemical operations in its refining and marketing segment. Shanghai Petrochemical Majority
owned by Sinopec. Koch Does not segment chemical data. Samsung Total Sales equity accounted in Total and Samsung figures. ChemChina Accounts not made public by the company. China Blue Star Chem Majority owned by ChemChina. Formosa Plastic Corp US Not segmented in Formosa reports. Formosa Petrochemical Corp Does not segment chemicals from its refining business. Nan Ya Plastics Sales a mixture of chemicals and processed items. Yeochon NCC Results included with Hanwha and Daelim. Daelim Below Top 100 in sales because Yeochon NCC is accounted as
an equity company. Samsung Does not consolidate various chemicals-company interests into one area. Hanwha Chemical 2011 accounts not yet made public by the company. Flint Group Accounts not made public by the company. Lubrizol Acquired by Berkshire Hathaway on 16 September, 2011; Lubrizol business not segmented. PIC Accounts not made public by the company.
Exchange rates
Key financial exchange rates used for 2011 data (2010 in parentheses): €/$ 1.296 (1.325) based on 31 December year end; $/Yen 82.9 (82.8) based on 31 March year end.
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10-16 September 2012 | ICIS Chemical Business | 33
ANALYSIS
Rank 2011 Company $m
Sales % Change Reporting currency in $ -5.8 -1.0 -6.6 1.6 5.4 -9.0 -1.1 11.7 -6.7 -0.7 5.3 32.1 20.5 11.2 11.8 22.0 33.5 7.7 4.7 11.7 3.7 -4.6 10.7 -5.8 12.7 33.3 3.4 0.3 18.1 18.5 22.9 24.2 11.6 14.3 8.7 31.3 13.3 7.2 1.1 -7.2 24.7 27.1 53.8 7.6 82.7 -1.3 3.3 19.7 0.2 14.5 22.8 13.3 11.5 19.9 11.6 14.2 18.3
Operating profit $m
2011
Net profit $m
2011
Total assets % $m 21,840
Change
R&D % $m 431
Change
Capital spending
Employees
%
$m
2010
$m
2010
% $m 969 822
Change Numbers Change
32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83
SK Energyi Shin-Etsuc PPG Industriesj Asahi Kaseic/k DSM Sekisui Chemicalc Sasoll LANXESS Praxair Mosaicm Huntsman BPn NPC (Iran)c/o Teijinc Air Productsz Henkel (Adhesive segment)p Formosa Chemicals & Fibre (Taiwan)q Borealis DICc Sherwin-Williams Potash Corp Versalis (part of ENI)i Tosohc Clariantr Arkemat Eastman Chemical ICL Ecolabu Celanese K+Sv ALPEK (Grupo Alfa)w Ashlandz/gg Dow Corning Wacker-Chemie Formosa Plasticsq Styron SCG Chemicalsii CF Industries Oricaz Indorama Venturesaa Taiyo Nippon Sansoc Kanekac Honeywellbb Mitsubishi Gas Chemicalc NOVA Chemicals Tasnee Momentive Specialty Chemicalsy PKN Orlena/i Occidental Chemicala/i Airgasc Showa Denkoa/i Petronasi
13,000 12,643 12,088 11,913 11,646
669 1,806 594 1,203 659 1,295 1,006 2,468 2,612 606 1,120 1,063 411 1,622
346 1,802 959 1,063 596 730 804 2,082 2,664 410 1,232 691 586 1,389 857 145 1224 642 304 1029 20,470 -18.9 9,197 14,291 0.0 5.8 3 384 119 324 1206 1729 439 190 463 1775 -113 121 168 460 438 1025 530 377 595 141 866 650 1758 754 349 1271 366 154 140 229 263 393 214 8,552 9,676 6,910 6,184 7,283 8,518 7,849 4,091 414 806 457 1339 355 13,571 8,083 2,577 5,596 8,975 7,434 4,623 7,325 5,636 5,402 149 615 651 118 7,183 6,208 3,108 3,790 313 250 5,321 3,976 -2.4 75.0 8.2 3.3 14.1 2.9 6.3 27.2 89 224 3.5 2.4 7.3 10.9 -3.7 1.7 2.5 10.4 77.9 -1.8 2.5 9.4 3.1 11.4 -0.9 -15.6 7.6 -3.0 41 70 10.8 6.1 370 282 313 158 277 139 187 241 357 114 16.1 50.0 -25.2 25.4 -20.1 16.8 -68.5 -2.8 39.3 -65.5 15,000 7.1 5,300 -11.7 2,450 0.2 46 24.7 247 646 196 -4.2 27.2 142.7 2,400 14,000 0.0 0.0 1,012 23.7 188 171 158 72 96 96 23 48.7 4.9 3.9 12.6 9.1 37.1 26.1 12,059 7,941 8,146 5,229 16,257 -7.0 6.4 -4.1 1.2 4.6 42 4.5 118 5.9 314 287 154 2,176 280 234 394 549 457 496 342 349 356 44 201 144.0 19.1 22.8 4.7 -15.9 -30.3 88.4 31.6 88.1 48.6 31.0 73.6 36.6 -21.3 4.7 22,149 12,937 10,000 11,910 40,200 7,600 14,496 4,502 15,000 12,000 17,168 5,362 2,100 36.9 18.1 0.0 7.9 51.7 4.8 2.2 10.5 3.4 33.3 5.2 6.5 5.0 33,000 5,703 5,804 3.1 4.0 -2.8 -3.2 0.9 3.6 6.0 656 334 1,352 213 -27.7 8.5 31.1 33.6 11,206 18,778 18,900 24,105 5,258 5,160 -5.5 7.0 3.3 0.7 7.2 1.7 656 1672 1930 247 502 1195 2515 27 8,657 -0.7 166 9.9 330 39.8 12,000 -7.7 8,913 16,356 18.7 7.1 187 90 21.4 13.9 880 1,797 32.5 29.5 1055 339 672 285 14,458 9,981 4.1 4.6 494 15.0 1214 1209 1.4 -4.3 -31.7 30.1 12.1 22,000 20,855 9,787 16,390 26,184 0.4 5.5 0.0 11.9 -0.3 16,167 -18.2
12,620 11.7
618
11,576 17.0 11,372 23.2 11,252 11.2 11,108 11.8 11,041 22.0 10,832 33.5 10,419 10,310 10,038 9,271 9,196 8,861 8,766 8,715 8,412 8,292 7,853 7,646 7,178 7,068 6,799 6,763 6,675 6,509 6,502 6,427 6,362 6,194 6,193 6,116 6,098 6,025 5,899 5,761 5,663 5,659 5,457 5,241 5,239 5,207 5,136 4,815 4,746 4,593 4,576 7.7 4.7 6.0 -4.6 13.2 -5.7 12.7 33.3 5.7 0.4 3.5 21.2 22.9 24.2 11.6 14.3 11.2 48.4 13.3 7.2 3.4 -7.2 24.7 33.7 53.8 6.4 92.1 -1.3 3.4 19.7 0.3 14.5 22.9 13.3 29.8 19.9 11.6 14.2 23.9
10,082 11.7
369 422 784 4,306 -549 286 540 929 1,021 1,926 754 690 1,233 579 130 792
463 449 749 2,597 -114 405 342 733 862 1,346 807 503 953 387 249 1,064
656 219 442 3081 -270 113 242 -25 696 1512 463 607 731
18,241 274.4
12,966 36.1
11,177 24.8
2,791 1,002 388 375 159 1,042 110 1,007 1,442 368 4 861 556 67
896 900 344 428 256 749 281 597 837 546 165 438 469 95
1539 626 489 256 65
10,647 15.1
34 | ICIS Chemical Business | 10-16 September 2012
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Rank 2011
Company $m
Sales % Change Reporting currency in $ 21.7 1.6 1.9 2.7 27.2 -7.6 -3.3 34.3 22.5 11.2 11.7 15.0 14.1 8.1 34.4 8.4 -4.4 19.0 1.5 1.8 2.7 21.1 5.4 -3.4 27.8 22.5 11.1 11.7 15.0 14.1 8.0 19.0 8.4 2.6
Operating profit $m
2011
Net profit $m
2011
Total assets % $m
Change
R&D % $m
Change
Capital spending
Employees
%
$m
2010
$m
2010
% $m
Change Numbers Change
Compania Espanola de Petroleos (CEPSA)i 85 Kurarayc Kagaku Kogyo 86 Denki (Denka)c 87 JSRc 88 SIBURs 89 Givaudan Chemical 90 Daicel Industriesc 91 EuroChem 92 Valsparhh 93 Nippon Shokubaic 94 RPMm 95 Rockwood Holdings 96 Westlake Chemical 97 Ubea/c 98 Mexichem 99 FMC 100 Asahi Glassa 84
4,489 4,452 4,401 4,223 4,195 4,171 4,126 4,103 3,953 3,870 3,777 3,669 3,620 3,563 3,392 3,378 3,224
660 250 434 654 472 246 1,371 -40 375 396 567 447 341 587 234
641 297 472 585 519 395 854 376 360 345 358 378 347
380 137 319 268 143 1001 -139 257 216 411 259 364
347 173 333 318 203 656 222 255 189 239 221 285 173
6,314 4,858 5,197 7,156 4,805 6,401 3,500 4,301 3,560 4,588 3,267 4,335 3,744 3,327
3.1 0.0 10.2 10.7 -3.2 30.5 -9.5 8.1 1.3 -2.9 10.6 5.5 12.8 6.6 105 4.7 115 134 45 59 15.2 6.2 10.0 19.9 313 -0.2
444
96.8
200 199 202 744 67 252 72 280 177 215 190 253
24.4 77.8 47.1 11.0 -1.8 36.4 80.9 55.1 117.5 21.0 33.2 37.8 9,700 9,700 1,811 11,173 5,000 2.0 7.8 1.0 -3.3 20,801 10,020 6.1 -1.6 8,913 3.4
387 215
366
BuBBLING uNDEr
Rank 2010 Company $m Sales % Change Reporting currency in $ 14.4 20.1 -2.8 5.1 14.2 11.8 9.6 42.1 21.4 0.4 9.2 2.1 6.3 5.0 13.9 22.6 1.9 32.6 -3.3 20.2 14.4 2.6 17.2 7.5 5.3 14.4 20.1 -2.9 -7.0 14.2 11.8 9.6 42.1 21.4 0.0 9.2 -0.1 6.3 2.7 13.9 8.4 1.9 32.6 -8.0 20.2 11.8 2.6 17.2 7.5 3.0 587 278 233 205 428 136 243 453 142 344 7 98 338 66 811 404 281 415 400 174 207 416 97 6 414 262 157 128 85 320 24 554 331 305 61 237 32 554 262 191 87 227 6 387 78 201 1,414 1,282 1,441 1,956 3,526 2,594 -8.0 8.2 0.4 15.4 -0.3 0.7 24 114 33.3 4.6 2 36 30 7.1 7.1 11.4 87 49 73 501 105 121 71.7 13.1 62.6 49.1 59.1 23.9 3,400 5,313 3.0 7.6 2,586 3,722 5,120 5.3 3.9 1.7 464 164 173 182 267 -124 121 165 -141 228 324 312 163 154 264 27 -132 145 -64 94 3,165 3,396 -3.9 8.1 78 6.8 111 128 16.8 4.9 4,750 0.7 3,204 7,480 2,081 3,468 2,966 1,788 3,766 4.4 46.2 24.5 2.9 3.2 -20.5 1.3 77 100 37 51 220 15 26 32.8 -5.5 9.2 -6.7 0.5 5.8 12.9 191 264 54 127 128 138 93 152.5 -13.4 37.0 27.8 19.9 -11.1 -5.7 4,260 11,001 4,700 5,006 5,644 7,457 4,072 6.0 32.9 17.5 0.6 2.4 -9.7 3.4 273 227 234 38 388 -883 426 -1,215 Operating profit $m
2011
Net profit $m
2011
Total assets % $m 1,644 4,497 3,764 7,857 3,141 3,537 2,855
Change
R&D % $m 69
Change
Capital spending
Employees
%
$m
2010
$m
2010
% $m 66 142 174 45.3 25.4 -12.8 113.0 0.8 24.2 3,744 6,300 13,541 4,100 5,500 4,500
Change Numbers Change
101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125
Georgia Gulf W.R. Grace Zeonc Pemexi Cabotz Cytec Industries Chemtura Industries Qatarcc Albemarle Lonzaff PolyOne Kemira IFF Tessenderlo Groupdd Makhteshim-Agan Industries Tata Chemicalc Momentive Performance Materialsy Methanex IRPC Public Company Limitedi Petkim Petrokimya Holding Fuchs Petrolub Ferro SQM Solutia Altana
3,223 3,212 3,172 3,114 3,102 3,073 3,025 2,966 2,869 2,868 2,864 2,860 2,788 2,755 2,691 2,675 2,637 2,608 2,372 2,330 2,162 2,156 2,145 2,097 2,095
125
114
58 269 231 -912 236 208 119
43 207 221 -1195 154 172 -586
-1.3 5.3 7.3 -11.1 8.8 -3.7 -2.0 66 85 43 1.5 16.7 2.4 13.6
3.5 5.0 0.0 5.1 -8.3 7.1
230 117 154
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10-16 September 2012 | ICIS Chemical Business | 35
ANALYSIS
ICIS Top 100 gains driven by prices
Higher prices translate to sales gain and improved profitability for the ICIS Top 100 chemical companies. We also highlight capital spending patterns
D
Ecolab
REGAN HARTNELL LONDON
espite many headwinds, the global chemical industry has surged to a new record level of chemical sales. The ICIS Top 100 chemical company listing shows that the top 100 had combined sales of $1.40 trillion (€1.08 trillion) in the 2011 financial year, representing growth of 13.4% compared with 2010. Top 100 sales in 2010 were almost 24% greater than in 2009, when chemical sales suffered greatly amid the 2008–2009 financial crisis. Year-on-year sales growth in 2011, albeit
TOP GAINS
Top 100 rankings gained this year over last
down from the surge in 2010, is still close to 1.5 times the 9.0% average level of annual growth seen since 2000. The ICIS Top 100’s $1.4 trillion of chemical sales represents 35.2% of the $3.98 trillion worth of global chemical production (excluding pharmaceuticals), according to the American Chemistry Council.
SALES MIRROR IPEX The rise in 2011 sales was mostly in line with the level of growth suggested by the dollar-denominated ICIS Petrochemical Index (IPEX), which suggests that sales growth was primarily attributed to higher
BiG BoTTom LiNE
Top five net profits in the Top 100, $bn
chemical prices rather than to any significant additional volume growth. The IPEX is a monthly calculated, capacityweighted index that tracks the price levels of a basket of 12 commodity-type chemicals and polymers in each of three regions – Asia, Europe and the US. By using a similar methodology and the average IPEX reading for the first seven months of 2012, this forecasts a level of sales in 2012 of around $1.36 trillion, or a decrease in chemical sales of just under 3%. The continued worries about the financial stability and fate of the eurozone, the health of
Top INNoVAToRs
Top five R&D expenditures as a % of sales
22 22 20 15 10
BASF SABIC ExxonMobil DuPont Potash Corp
8.0 7.8 4.4 3.5 3.0
Merck KGaA Syngenta Givaudan DuPont Bayer
14.8% 8.5% 7.5% 5.2% 5.1%
Xxxxx Xxxxx Xxxxx Xxxxx Xxxxx Xxxxx
Indorama Ventures Solvay CF Industries Sasol
ICIS TOP 100 SALES TRACK IPEX ON PRICE INFLATION
Sales, $bn
1,600
TOP 100 SALES GROWTH
IPEX
400
Percentage Xxxxx xxxxxx
25 Xxxxx xxxxxx Xxxxx xxxxxx 20 Xxxxx xxxxxx 15 Xxxxx xxxxxx Xxxxx xxxxxx 10 5
Top 100 chemical sales IPEX index (1993=100)
1,200 300
FORECAST
800
200
0 -5
100
400
-10 -15
Year on year sales growth Average growth 2001 2011
0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
0
-20
36 | ICIS Chemical Business | 10-16 September 2012
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Average operating profit margin for the top 20 companies in the listing was 9.7%, higher than the average 8.0% margin since 2001
the US economy and continued growth in emerging markets have capped volume growth and demand-pull price rises in the first two quarters of 2012. Price increases reflected in the IPEX have generally resulted from higher feedstock costs flowing through to increased product prices.
The only producers to declare negative operating profit margins are the Italian producer Versalis (formerly Polimeri Europa), which suffers from some legacy operating issues, and US-based Valspar as it struggled with a multiyear downturn of the US construction sector.
OPERATING pRoFiT MARGINS RISE The average operating profit margin (operating profits to sales ratio) for the top 20 companies in the listing was 9.7%, higher than the average 8.0% margin since 2001. It was the second consecutive operating profit margin increase since the 2009 slump. For the second year running, fertilizer producers have returned the best operating margins and have dominated half of the top 10 places in the winners and losers chart. Although well down from their pre-crisis peak, fertilizer prices have remained resilient due to strong demand from emerging nations. After its reorganisation and release of company financials, Russian chemical producer Sibur has ousted Middle East producers from the top margin spot for petrochemical producers, although Saudi Arabia’s SABIC 50 does feature in the top 10. Understandably, a handful of 40 Japanese companies are among the worst performers at 30 the operating level, as they were greatly affected by the disastrous tsunami of early 2011 20 and are still facing difficult operating conditions of reduced electricity supply 10 after the shutdown of nuclear generating capacity.
0
FERTiLiZERS SPEND BIG For the second year running, the biggest spenders were dominated by fertilizer producers and industrial gas companies, as represented by an analysis of the ratio of capital expenditures to revenue levels. Fertilizer producers are undergoing a multi-year capital investment cycle to bring new fertilizer capacity on stream. Industrial gas companies are seeing strong
WINNERS AND LOSERS
Percentage
50
demand for their products from Asia and higher levels of capital expenditures are an integral part of their business model to supply their customers with their gaseous needs. Sibur is the only petrochemical producer to feature on the big spender chart, as it has ambitious investment plans to supply a strongly growing Russian market. On an absolute level, the larger petrochemical companies show their presence. Germany-based BASF takes top spot with close to $4.5bn worth of investment in 2011, followed by SABIC, USbased Dow Chemical and China’s Sinopec, each with $2bn–3bn of expenditure. ■
Visit the landing page for this year’s Top 100 chemical companies listing and analysis on the ICIS website at icis.com/top100chem
Top 10 and bottom 5 operating margins 40 30 20 10 0 -10
Ind CF us trie s
ic
Ch Mits em ui ica ls Sh De owa nk o
Ch NOV em A ica ls
Po t Co ash rp
ICL
Li Gr nde ou p Pra xa ir
BIC
he m
SIB
P Or KN len
sa
Va ls
Ch Nov em a ica ls M Ch its em ui ica ls Sh De owa nk o
Po Co tash rp.
Li Gr nde ou p Pra xa ir
Ind CF us tri e
P Or KN len
pa
roC
12 10 8 6 4 2 0
Top 20 operating margins Average margin
25 20
Ve rsa li
SIB U
he
SA B
sa
Percentage
s
ICL
ic
IC
m
R
Va ls
Mo
s
AVERAGE OPERATING MARGINS OF TOP 20 PRODUCERS -10
FERTILIZER COMPANIES INVEST TO FEED A HUNGRY WORLD
Percentage
Eu r
Eu
Ve rs
SA
roC
Mo
ali s
UR
pa r
Xxxxx
Capital expenditure as % of sales
Xxxxx Xxxxx Xxxxx
15
25
Xxxxx
10 5 0
20
15
UR Eu Ch ro em Pra xa ir W -Ch acke em r ie Alb em arl e Liq Air uid e Ori ca So lva y Ku rar ay Li Gronde up Ch LG em As Gla ahi LA ss NX ES S Sh inEts u Ro ck wo od Air ga s Ar k em a
Po t Co ash rp
ICL
2001
10
2011
5
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Po t Co ash rp SIB UR E Ch uro em Pra xa ir Wa c he ker mi e em arl e Liq Air uid e ica lva y ray
0
10-16 September 2012 | ICIS Chemical Business | 37
Li Gr nde ou p L Ch G em As Gla ahi ss an xe ss inEts u kw oo d Air ga s rke ma ICL As Ka ahi se i Or So ura
As Ka ahi se i
SIB
