ICIS Publishes Top 100 Companies For 2009

ICIS has recently published its regular Top 100 Chemical Companies feature, together with an excellent analysis of the events of the last year.

The Top 5, ranked in terms of sales, are BASF, Dow Chemical, ExxonMobil, Sinopec and Lyondell Basell. Of these, Sinopec is new to the top 5, having been ranked 8th last year.

Looking back over the last year, it is really quite remarkable that the major chemical companies have fared so well in adapting to an economic crisis that saw an oil price crash from a peak of $147 per barrel down to $32 per barrel and a virtual collapse in markets such as construction and automotive.

Clearly survival required significant cost reduction across the board. Reduced working capital, operating and maintenance cost reductions and reduced capital expenditure were commonplace, the only difference being the depth of cuts from one company to the next.

This blog has talked much about a new normal in the post recession period. The challenge remains a difficult one for all chemicals producers as we move forward. It will be necessary to deal with the economic conditions that this new normal will bring, whilst also adopting strategies to address the impacts of the recent cost cuts in areas such as capital expenditure.

However, in having survived so far, companies have clearly demonstrated that they have the management capabilities and willingness to adapt.

Reliance to Purchase LyondellBasell Assets?

photo : LyondellBasell

Speculation is mounting that Reliance Industries is looking to buy the North American assets of LyondellBasell. Various sources suggest that a price of between $3 billion and $6 billion will be offered for the assets.

LyondellBasell was formed back in July 2007, when Basell acquired Lyondell Chemical Co. for $12.1 billion.

Although it is necessary to take into account the fact that Lyondell had assets outside the US, the price range quoted is still much lower than the original price paid by Basell. It is not clear at this stage whether the deal would include any of LyondellBasell's very strong technology licensing businesses - which cover predominantly polyolefins, polyolefin catalysts, olefins, propylene oxide and derivatives - although I would think this is unlikely.

LyondellBasell does have some very good US assets. If Reliance were to acquire these assets it would significantly strengthen its global position and move significantly higher in the ICIS Top 100 chemical companies, where it currently holds 34th place. LyondellBasell is currently in 4th place. Changing times!

ICIS Top 100 Chemical Companies

My recent post on the ICIS Top 100 Chemical Companies generated much discussion.

Many thanks to Lara McNamee of ICIS who posted the link to the PDF file in the comments section of the blog.

The PDF file can be downloaded by following this link

It will be very interesting to see the 2009 top 100 report and assess the growth of the Middle Eastern chemical companies as well as the impact of recession on the major European and North American chemical companies.