Oil & Gas

1st Quarter 2015

• Considerable sales growth through increased volumes in gas trading business
• Slight earnings reduction despite considerable decrease in oil prices

We raised our sales considerably in the Oil & Gas segment compared with the previous first quarter (volumes 32%, prices/currencies −17%, portfolio 2%). This was predominantly the result of increased oil and gas production and higher volumes in the Natural Gas Trading business sector. Income from operations before special items declined slightly. A greater contribution from Natural Gas Trading was not able to fully compensate for the primarily oil price-related decrease in the Exploration & Production business sector. Net income was below the previous first quarter’s level. The first quarter of 2014 had included special income from the divestiture of our shares in non-BASF-operated fields in the British North Sea.

Sales were down considerably in the Exploration & Production business sector. In the first quarter of 2015, the price of Brent blend crude oil averaged $54 per barrel, while it had sold at $108 per barrel (−50%) in the same quarter of the previous year. Production increases in Norway and Russia could not fully compensate for this price development. The activities in Norway acquired from Statoil at the end of 2014 led to positive portfolio effects. Earnings fell by a third as a result of the reduced prices as well as higher exploration expenses in Norway.

In the Natural Gas Trading business sector, we achieved a considerable, volumes-driven increase in sales. Higher sales volumes and more favorable procurement conditions led to considerable earnings growth.