Top 100 global chemical companies |
| News created: 22. september 2007 11:22 |
NIGEL DAVIS/LONDON
THE CHEMICAL industry enjoyed another great year in 2006. Demand improved almost across the board. Companies fought with the rocketing oil price and its impact on feedstock and energy costs, but the battle was largely won. Higher costs were passed on to customers down most product chains. Cash flowed freely as companies capitalized on a third successive year of growth.
The good times are reflected in the annual ICIS analysis of the financial performances of the Top 100 global chemical producers. The data for 2006 - and for the Japanese majors for fiscal 2006/07 - show sales increasing and profits climbing with them.
The year did not necessarily feel that good for market players in July and August, when when first-half problems, coupled with a record-high oil price hit most businesses hard. But still-buoyant demand, particularly from developing Asia, and also from a resurgent Europe, helped keep supply/demand balances tight. That tightness was reflected in better second-half performance.
There were pockets of underperformance, as might be expected in a group of such diverse companies and markets. For most firms, however, the trick will be to match 2006 performance in 2007.
The Top 100 numbers tell the tale for 2006 as a whole. Sales for the leading 20 chemical firms were 14% higher operating profits were up by 6%. Companies used cash to pay down debt, reward shareholders and expand. Net profits for the top 20 were, on average, 8% higher than in 2005.
The ICIS listing includes the major chemical firms and the oil companies' chemical offshoots. Corporate data are given to ensure that as much information as possible can be included in the listing and comparisons with earlier years made easily. |
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