Chemicals

Q1 2021

Compared with the first quarter of 2020, sales1 in the Chemicals segment rose considerably as a result of sales growth in both divisions.

Factors influencing sales in Q1 2021 – Chemicals

 

Chemicals

Petrochemicals

Intermediates

Volumes

7%

6%

9%

Prices

15%

19%

7%

Portfolio

–1%

–1%

0%

Currencies

–5%

–6%

–4%

Sales

16%

18%

12%

The sales increase was primarily due to significantly higher price levels. The Petrochemicals division increased prices for steam cracker products, styrene monomers, acrylics and oxo alcohols in particular. This mainly reflected the passing on of higher raw materials prices. The Intermediates division also achieved higher prices, especially in Asia, mostly in the butanediol and derivatives and the acids and polyalcohols businesses.

Sales volumes increased significantly as well due to a recovery in demand. In the Petrochemicals division, volumes were higher for steam cracker products and acrylic monomers in particular. Volumes rose significantly in the Intermediates division, especially in the butanediol and derivatives business. In both divisions, sales volumes were negatively impacted by plant shutdowns in North America due to the cold weather as well as production outages and raw material bottlenecks.

Sales performance was weighed down by negative currency effects, mainly relating to the U.S. dollar.

Income from operations (EBIT) before special items1 rose considerably compared with the first quarter of 2020 in both divisions, especially in the Petrochemicals division. Earnings development in both divisions was driven by higher margins as a result of a recovery in demand, an improvement in income from equity-accounted companies, and lower fixed costs.

EBIT included special income from the sale of the condensate splitter in Port Arthur, Texas, to Total Petrochemicals & Refining USA, Inc. in the first quarter of 2021.

1 For sales, “slight” represents a change of 1%–5%, while “considerable” applies to changes of 6% and higher. “At prior-year level” indicates no change (+/–0%). For earnings, “slight” means a change of 1%–10%, while “considerable” is used for changes of 11% and higher. “At prior-year level” indicates no change (+/–0%).

Segment data – Chemicals (Million €)

 

 

Q1

 

 

2021

2020

+/–

Sales to third parties

 

2,736

2,350

16%

of which Petrochemicals

 

1,937

1,639

18%

Intermediates

 

799

711

12%

Income from operations before depreciation, amortization and special items

 

737

391

88%

Income from operations before depreciation and amortization (EBITDA)

 

784

386

103%

EBITDA margin

%

28.7

16.4

Depreciation and amortizationa

 

179

216

–17%

Income from operations (EBIT)

 

605

170

256%

Special items

 

47

–4

.

EBIT before special items

 

558

174

221%

Assets (March 31)

 

8,400

9,226

–9%

Investments including acquisitionsb

 

128

360

–64%

Research and development expenses

 

26

25

4%

a

Depreciation and amortization of property, plant and equipment and intangible assets (including impairments and reversals of impairments)

b

Additions to property, plant and equipment and intangible assets