Chemicals

Q2 2019

In the Chemicals segment, sales were considerably lower than in the second quarter of 2018, especially in the Petrochemicals division. Sales also declined considerably in the Intermediates division.

Factors influencing sales in Q2 2019 – Chemicals

 


Chemicals

Petro­chemicals

Intermediates

Volumes

 

(17%)

(21%)

(6%)

Prices

 

(6%)

(6%)

(7%)

Portfolio

 

0%

0%

0%

Currencies

 

1%

1%

2%

Sales

 

(22%)

(26%)

(11%)

Sales development was mainly driven by significantly lower volumes in the Petrochemicals division as a result of the scheduled turnarounds of our steam crackers in Antwerp, Belgium, and Port Arthur, Texas. Sales volumes also declined considerably in the Intermediates division, especially in the businesses serving the automotive, coatings, textile and wind turbine industries. Price levels in both divisions were likewise significantly lower than in the prior-year quarter. In the Petrochemicals division, prices declined for styrene monomers, ethylene glycols and steam cracker products in particular. In the Intermediates division, prices were considerably lower for acids and polyalcohols, among other products. Positive currency effects had a slight offsetting effect in both divisions.

Income from operations (EBIT) before special items decreased considerably compared with the second quarter of 2018 in both divisions, but especially in the Petrochemicals division. Contributing factors included the turnarounds of our steam crackers. Margins also declined, in particular for steam cracker products in North America as well as for ethylene glycols in Europe and Asia Pacific due to high product availability on the market. In addition, we had received an insurance refund in the prior-year quarter. Fixed costs were negatively impacted by currency effects. EBIT before special items in the Intermediates division declined as a result of lower margins and volumes.

EBIT includes a special charge from the impairment of a natural gas-based investment on the U.S. Gulf Coast, which BASF is no longer pursuing.

Segment data – Chemicals (Million €)

 

 

Q2

H1

 

 

2019

2018

+/–

2019

2018

+/–

a

Amortization of intangible assets and depreciation of property, plant and equipment (including impairments and reversals of impairments)

b

Additions to intangible assets and property, plant and equipment

Sales to third parties

 

2,180

2,792

(22%)

4,728

5,737

(18%)

of which Petrochemicals

 

1,463

1,984

(26%)

3,266

4,145

(21%)

Intermediates

 

717

808

(11%)

1,462

1,592

(8%)

Income from operations before depreciation, amortization and special items

 

302

621

(51%)

791

1,255

(37%)

Income from operations before depreciation and amortization (EBITDA)

 

286

616

(54%)

771

1,245

(38%)

Depreciation and amortizationa

 

323

166

95%

506

325

56%

Income from operations (EBIT)

 

(37)

450

.

265

920

(71%)

Special items

 

(156)

(7)

.

(160)

(12)

.

EBIT before special items

 

119

457

(74%)

425

932

(54%)

Assets (June 30)

 

9,058

8,813

3%

9,058

8,813

3%

Investments including acquisitionsb

 

337

218

55%

572

353

62%

Research and development expenses

 

26

28

(7%)

53

56

(5%)