2.2 – Joint operations

Proportionally consolidated joint operations particularly comprise:

  • Ellba C.V., Rotterdam, Netherlands, which is operated jointly with Shell and produces propylene oxide and styrene monomer
  • BASF DOW HPPO Production B.V.B.A., Antwerp, Belgium, which is operated jointly with The Dow Chemical Company to produce propylene oxide
  • AO Achimgaz, Novy Urengoy, Russia, which is jointly operated with Gazprom for the production of natural gas and condensate

BASF holds a 50% share in each of these companies and controls them jointly with the respective partner. The companies sell their products directly to the partners. The partners ensure the ongoing financing of the companies by purchasing the production. They were therefore classified as joint operations in accordance with IFRS 11.

In the following table, the previous year’s income statement and statement of cash flows include the share in Ellba Eastern Private Ltd., Singapore, which was sold on December 31, 2014.

Financial information on proportionally consolidated companies (BASF stake, unconsolidated) (in million €)

 

 

2015

2014

Income statement

 

 

 

Sales

 

370

1,088

Income from operations

 

195

220

Income before taxes and minority interests

 

202

222

Net income

 

159

189

 

 

 

 

Balance sheet

 

 

 

Noncurrent assets

 

540

446

Thereof property, plant and equipment

 

523

431

Current assets

 

152

172

Thereof marketable securities, cash and cash equivalents

 

53

41

Assets

 

692

618

Equity

 

515

453

Noncurrent liabilities

 

84

54

Thereof financial indebtedness

 

Current liabilities

 

93

111

Thereof financial indebtedness

 

Total equity and liabilities

 

692

618

Other financial obligations

 

479

412

 

 

 

 

Statement of cash flows

 

 

 

Cash provided by operating activities

 

205

252

Cash used in investing activities

 

(159)

(224)

Cash used in / provided by financing activities

 

(36)

14

Net changes in cash and cash equivalents

 

10

42

A majority of the activities in the Oil & Gas segment’s Exploration & Production business sector take place through joint activities which are not incorporated in separate companies. This primarily relates to activities in Germany, Norway and Argentina. These are generally accounted for as joint operations in accordance with IFRS 11 and contribute the largest part of the sales, depreciation and amortization, and fixed assets in the Oil & Gas segment.