Global GET-Future Laboratory

Profits, however, went in the other direction. The 44 companies in the Global Top 50 that post profit figures reported a total of $96.7 billion, a 15.1% increase from a year earlier. Profit margins for the same firms increased to 13.5% from 10.6%. No company on the list lost money in 2015. It turns out that 2015, though unusual, wasn’t a bad year for chemical companies.

Oil prices averaged about $49 per barrel in 2015, down from $93 in 2014, according to the Energy Information Administration. These lower oil prices pulled down chemical prices, but they also gave chemical companies a break on feedstock costs. On balance, lower oil prices have been good for chemical makers, especially those in Asia and Europe, which had been losing out to natural-gas-based chemical makers in the U.S. and the Middle East.

Another factor influencing the ranking is the strong dollar. In 2014, a euro cost $1.33 on average. In 2015, it cost $1.11. Other major currencies such as the Japanese yen and the South Korean won also decreased in value against the dollar. Currency strength impacts the ranking because C&EN converts foreign company sales from their local currency to dollars.

This year’s Global Top 50 lineup is somewhat changed from last year. Gone from the list is Shell Chemicals, which failed to provide C&EN with a sales figure for its chemical business. Sales declines pushed BP, Tosoh, and Siam Cement off the list.

A new company that made the ranking is the Bayer spin-off Covestro. Other new faces include Lubrizol, Honeywell, and Potash Corp. of Saskatchewan. Interestingly, these three firms all report their results in the strong U.S. dollar.