Chemicals

Q1 2022

Sales¹ in the Chemicals segment rose considerably compared with the prior-year quarter. Both operating divisions contributed to the increase.

Factors influencing sales in Q1 2022 – Chemicals
	Chemicals	Petrochemicals	Intermediates
Volumes	0.2%	1.3%	–2.5%
Prices	41.3%	37.0%	51.7%
Portfolio	–0.1%	–0.1%	–0.1%
Currencies	4.9%	4.4%	6.1%
Sales	46.3%	42.6%	55.3%

Sales growth was primarily driven by significantly higher prices in both divisions. This was due to the passing on of increased prices for raw materials and energy amid continued strong demand. The Petrochemicals division raised prices in all business areas, especially for steam cracker products, styrene monomers and in the propylene and butadiene value chains. The Intermediates division raised prices, particularly in the butanediol and derivatives business, the amines business and in the acids and polyalcohols business.

Sales performance was supported by positive currency effects, mainly relating to the U.S. dollar.

Overall, sales volumes were slightly above the prior-year quarter amid stable demand. Slightly higher volumes in the Petrochemicals division more than compensated for slightly lower volumes in the Intermediates division.

Income from operations (EBIT) before special items¹ rose considerably compared with the first quarter of 2021, mainly due to higher margins in both divisions. The Intermediates division significantly improved margins across all business areas in North America and Asia Pacific. This more than compensated for lower margins in Europe in the butanediol and derivatives business and in the acetylenics and carbonyl derivatives business as a result of the sharp rise in natural gas prices. Income from shareholdings accounted for using the equity method also improved, contributing to earnings growth. The increase in earnings in the Petrochemicals division was driven by higher margins in the propylene and butadiene value chains and for styrene monomers. This more than compensated for lower margins for steam cracker products due to higher raw materials and energy prices. Higher fixed costs, partly due to currency effects and higher energy and gas prices, had an offsetting effect.

Q1 segment data – Chemicals (Million €)

2022

2021

+/–

Sales to third parties

4,004

2,736

46.3%

of which Petrochemicals

2,763

1,937

42.6%

Intermediates

1,241

799

55.3%

Income from operations before depreciation, amortization and special items^a

1,048

766

36.8%

Income from operations before depreciation and amortization (EBITDA)^a

1,046

813

28.7%

Depreciation and amortization^b

189

179

5.7%

Income from operations (EBIT)^a

857

633

35.4%

Special items

–1

EBIT before special items^a

858

586

46.5%

Assets (March 31)^a

11,367

8,476

34.1%

Investments including acquisitions^c

228

128

78.2%

Research and development expenses

–3.5%

a	BASF’s ethylene value chain was reorganized as of January 1, 2022. In this connection, the polyolefins and styrenics businesses of the joint venture BASF-YPC Company Ltd., Nanjing, China, which were previously reported under Other, were allocated to the Petrochemicals division. The prior-year figures have been adjusted. This reduced income from integral companies accounted for using the equity method, EBITDA before special items, EBITDA, EBIT and EBIT before special items in Other by €28 million in the first quarter of 2021 and increased these indicators in the Petrochemicals division accordingly (rounding differences are possible). The effect was €28 million in both the second and third quarters of 2021 and €34 million in the fourth quarter of 2021. The effect in full-year 2021 was €118 million. The operating assets were also reallocated as part of the reorganization and increased the Chemicals segment’s assets by €114 million as of December 31, 2021. For more information, see basf.com/publications
b	Depreciation and amortization of property, plant and equipment and intangible assets (including impairments and reversals of impairments)
c	Additions to property, plant and equipment and intangible assets

1 For sales, “slight” represents a change of 0.1%–5.0%, while “considerable” applies to changes of 5.1% and higher. “At prior-year level” indicates no change (+/–0.0%). For earnings, “slight” means a change of 0.1%–10.0%, while “considerable” is used for changes of 10.1% and higher. “At prior-year level” indicates no change (+/–0.0%).

BASF Quarterly Statement Q1 2022

Chemicals

Q1 2022

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