Saturday, October 1, 2016

Chemical report Q2 2016


In the chemical group I decided to push in BASF, BP, Fugro as well as Tessenderlo. Fugro is indeed not a chemical company but it is very strongly influences by the chemical industry and especially then the oil industry that I decided that it makes more sense to bring them in here. If I will see a dramatic change in the business for Fugro then I will know that BASF and BP is once again taking off and start to see the end of the tunnel.

BASF


BASF, Q2, 2016, front page


For the report in full please go here and for the latest summary which was the BASF report Q1 2016 then please click on that link and to find out more about The Chemical Company then please visit analysis of BASF 2016.

In the financial statement below there is not much to be happy about. The revenue has definitely crashed for BASF and it is now down by -27% the only good part there is that they have tightened up their costs that are happily down by -33%.This year they additionally have not held a party for 0.5 billion € so we end up with almost 2.5 billion € in earnings which is pretty similar to the party year so it is not good but at least they are showing earnings.


BASF, Q2, 2016, financial statement


Conclusion: BASF is struggling and their oil and gas business is down on its knees with -86% in revenue. Disturbing enough also the Chemistry is down by -15% which really surprises me since that goes against my thoughts. I will of course remain as a shareholder in BASF.

BP

BP, Q2, 2016, front page


For the report in full please click here and to see the previous summary regarding BP report Q1 2016 or why not take a look at the latest analysis of BP 2016. 

In the financial statement below we can see how hard BP is still suffering. The revenue was increased for Q2 in comparison to Q1 2016 but still it is far from what it was back in 2015. We can see that Rosneft start to recover a little so the flow from associates have kicked up a little but still I do not really see the light in the end of this tunnel based on these figures. Th earnings are yet again a loss in the size of, for the half year, 2 billion USD. I do not know if it should be stated as being light in the end of tunnel but they have increased their spending on exploration... Let us see if any of that has gone to Fugro.


BP, Q2, 2016, financial statement


Conclusion: BP is still doing awful. Crashed revenue, crashed earnings and for us poor shareholders the cannibalising continues with paid out dividend and a strongly decreasing equity that follows. I understand why they do not stop it but sometimes one really should. I will remain as shareholder.

Fugro

Fugro, Q2, 2016, front page

For the report in full please go here and to see my previous summary then visit Fugro report Q2 2016 and to find out more about Fugro then please click on analysis of Fugro 2016.

In the financial report below things are not a rose garden for Fugro. Revenue has crashed from 1.2 billion to less than 1 billion €. They keep firing people and selling out not only vessels but also entire divisions. Right now they are eating up the few retained earnings that they had from the good years and we can even see that their backlog is dying. They very strongly emphasise that many customers are pulling back their contracts within the oil and gas industry. So that BP increased their exploration does not seem to have landed in the hands of Fugro.


Fugro, Q2, 2016, financial statement


Conclusion: Fugro is still not doing well and they will not until oil prices goes up much higher. They are cutting, cutting and cutting which is purely a matter of surviving which makes it very sad for me to watch as a shareholder. I should never have entered in Fugro but I will not sell them at this time.

Tessenderlo

Tessenderlo, Q2, 2016, front page

For the report in full please click here and to see my previous summary then please visit Tessenderlo report Q1 2016 and to find out more concerning Tessenderlo then please go to analysis of Tessenderlo 2016.

From the statement below we can see there has not been any large changes when one compares 2015 with 2016. The revenue is pretty much flat, costs have decreased ever so slightly and we end up pretty much the same earnings as we had in 2015 for the running six months.


Tessenderlo, Q2, 2016, financial statement


Conclusion: Tessenderlo made that jump up from disaster to back on track in 2015 and as of yet they have not managed to bring it to the next level of having increased revenue and earnings. I am sure that it will come soon enough and I do not mind if I have to wait another year for it. I will remain as a shareholder in Tessenderlo.

Conclusion Overall: The chemical sector is not doing very well. Most of them have dropped back in revenue and earnings and if you are a service company to that sector then you will have serious problems right now.

No comments: