- Financial result improves significantly, special income from sale of shares in K+S Aktiengesellschaft
- Income taxes increase only slightly, despite strong improvement in earnings before taxes and minority interests
- Months-long suspension of oil production in Libya and predominantly tax-free gains from sale of shares in K+S Aktiengesellschaft lead to decline in tax rate
The financial result was €384 million, significantly above the previous year’s value of minus €388 million. This was primarily due to the special item of €887 million in income from participations that resulted from the sale of our stake in K+S Aktiengesellschaft. The overall financial result included special items of €829 million. Special items in income before taxes and minority interests amounted to €968 million.
At minus €574 million, the interest result improved compared with the previous year. Other financial expenses and income improved to minus €26 million.
Income before taxes and minority interests increased significantly from €7,373 million to €8,970 million. Return on assets amounted to 16.1%, compared with 14.7% in the previous year.
Despite the strong improvement in income before taxes and minority interests, income taxes increased only slightly, by €68 million to €2,367 million. The tax rate therefore decreased significantly, from 31.2% to 26.4%. This was mostly due to the months-long suspension of oil production in Libya, which is heavily taxed. At €439 million, non-compensable income taxes for oil production in 2011 were €544 million below the level of the previous year. Furthermore, gains from the sale of our shares in K+S Aktiengesellschaft were predominantly tax-free.
Income before minority interests improved by €1,529 million to €6,603 million. Minority interests decreased from €517 million to €415 million. Declines were posted especially at Wintershall AG following the months-long suspension of production in Libya as well as at BASF PETRONAS Chemicals Sdn. Bhd. in Malaysia. Net income grew by €1,631 million to €6,188 million. Earnings per share thus rose from €4.96 to €6.74.