2.2 – Joint operations
Proportionally consolidated joint operations particularly comprise:
- Ellba C.V., Rotterdam, Netherlands, which is operated jointly with Shell and produces propylene oxide and styrene monomer
- BASF DOW HPPO Production B.V.B.A., Antwerp, Belgium, which is operated jointly with The Dow Chemical Company to produce propylene oxide
- AO Achimgaz, Novy Urengoy, Russia, which is jointly operated with Gazprom for the production of natural gas and condensate
BASF holds a 50% share in each of these companies and controls them jointly with the respective partner. The companies sell their products directly to the partners. The partners ensure the ongoing financing of the companies by purchasing the production. They were therefore classified as joint operations in accordance with IFRS 11.
In the following table, the previous year’s income statement and statement of cash flows include the share in Ellba Eastern Private Ltd., Singapore, which was sold on December 31, 2014.
Financial information on proportionally consolidated companies (BASF stake, unconsolidated) (in million €) |
|||
|
|
2015 |
2014 |
|---|---|---|---|
Income statement |
|
|
|
Sales |
|
370 |
1,088 |
Income from operations |
|
195 |
220 |
Income before taxes and minority interests |
|
202 |
222 |
Net income |
|
159 |
189 |
|
|
|
|
Balance sheet |
|
|
|
Noncurrent assets |
|
540 |
446 |
Thereof property, plant and equipment |
|
523 |
431 |
Current assets |
|
152 |
172 |
Thereof marketable securities, cash and cash equivalents |
|
53 |
41 |
Assets |
|
692 |
618 |
Equity |
|
515 |
453 |
Noncurrent liabilities |
|
84 |
54 |
Thereof financial indebtedness |
|
– |
– |
Current liabilities |
|
93 |
111 |
Thereof financial indebtedness |
|
– |
– |
Total equity and liabilities |
|
692 |
618 |
Other financial obligations |
|
479 |
412 |
|
|
|
|
Statement of cash flows |
|
|
|
Cash provided by operating activities |
|
205 |
252 |
Cash used in investing activities |
|
(159) |
(224) |
Cash used in / provided by financing activities |
|
(36) |
14 |
Net changes in cash and cash equivalents |
|
10 |
42 |
A majority of the activities in the Oil & Gas segment’s Exploration & Production business sector take place through joint activities which are not incorporated in separate companies. This primarily relates to activities in Germany, Norway and Argentina. These are generally accounted for as joint operations in accordance with IFRS 11 and contribute the largest part of the sales, depreciation and amortization, and fixed assets in the Oil & Gas segment.