Capex spending falls as profits drop

Capex sept10.pngThe ICIS Top 100 listing of the world’s major chemical companies has just been published, and provides its usual store of data and insight.

In his summary, editor Nigel Davis notes that 16 of the Top 100 reported a net loss in 2009, with LyondellBasell, PEMEX and INEOS the largest at $2.9bn, $1.5bn and $0.9bn respectively.

Davis also notes that “In a world cautious in the extreme and armed against the impact of a further downturn, it is predictable that Top 100 analysis for 2009 records much lower capital spending (capex) across the sector. The average fall for the Top 100 that disclosed capex was 16.5%.” The data is summarised above, by reporting company.

Davis also notes that “the average decline in R&D spending was 4.4%, with 37 companies making cuts of more than 5%”. Equally, he reports that “11 companies cut employee numbers by more than 10%.

A full copy of this year’s report can be downloaded free by clicking here.

About Paul Hodges

Paul Hodges is Chairman of International eChem, trusted commercial advisers to the global chemical industry. The aim of this blog is to share ideas about the influences that may shape the chemical industry over the next 12 – 18 months. It will try to look behind today’s headlines, to understand what may happen next in important issues such oil prices, economic growth and the environment. We may also have some fun, investigating a few of the more offbeat events that take place from time to time. Please do join me and share your thoughts. Between us, we will hopefully develop useful insights into the key factors that will drive the industry's future performance.

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