2.3 – Joint ventures and associated companies
Equity-accounted joint ventures particularly comprise:
- BASF-YPC Company Ltd., Nanjing, China, Verbund site operated together with Sinopec (BASF stake: 50%)
- Heesung Catalysts Corporation, Seoul, South Korea, which is operated jointly with Heesung (BASF stake: 50%)
- N.E. Chemcat Corporation, Tokyo, Japan, which is operated jointly with Sumitomo Metal Mining Co. Ltd. (BASF stake: 50%)
- Wintershall Noordzee B.V., Rijswijk, Netherlands, which is operated jointly with Gazprom (BASF stake: 50%) (effective September 30, 2015)
Joint ventures accounted for using the equity method (BASF stake) (in million €) |
|||
|
|
2015 |
2014 |
|---|---|---|---|
Investments accounted for using the equity method as of the beginning of the year |
|
1,263 |
1,218 |
Proportional net income |
|
25 |
87 |
Proportional change of other comprehensive income |
|
80 |
96 |
Total comprehensive income |
|
105 |
183 |
Capital measures/dividends/changes in the scope of consolidation/other adjustments |
|
260 |
(119) |
Other adjustments of income and expense |
|
(35) |
(19) |
Investments accounted for using the equity method as of the end of the year |
|
1,593 |
1,263 |
Equity-accounted associated companies particularly comprise:
- Achim Development, a limited liability company in Novy Urengoy, Russia (BASF stake: 25.01%) and Achim Trading, a closed joint stock company in Moscow, Russia (BASF stake 18.01%, economic share 25.01%), which together with Gazprom, develop and market the output from blocks IV and V of the Achimov formation
- Wintershall AG, Kassel, Germany, which operates Libyan exploration and production activities together with Gazprom Libyen Verwaltungs GmbH (BASF stake: 51%). Despite an investment of 51%, BASF does not exercise control according to IFRS 10, as contractual arrangements with the Libyan government strictly limit influence on variable returns after income taxes.
- Although BASF only has a 15.5% share in Nord Stream AG, Zug, Switzerland, this was classified as associated company, as BASF exercises significant influence over the company as its approval is required for relevant board resolutions
- OAO Severneftegazprom, Krasnoselkup, Russia (BASF stake: 25%, economic share: 35%)
- Shanghai Lianheng Isocyanate Co. Ltd., Shanghai, China (BASF stake: 35%)
- GASCADE Gastransport GmbH, Kassel, Germany (BASF stake: 50.02%)
- NEL Gastransport GmbH, Kassel, Germany (BASF stake: 50.02%). Due to the corporate governance structure of GASCADE Gastransport GmbH, Kassel, Germany, and NEL Gastransport GmbH in connection with requirements of Section 10 of the Energy Management Act (EnWG), BASF only exercises significant influence over both companies, despite an investment of more than 50%.
Effective July 1, 2015, BASF sold its 25% share in SolVin to its partner, Solvay.
Associated companies accounted for using the equity method (BASF stake) (in million €) |
|||
|
|
2015 |
2014 |
|---|---|---|---|
Investments accounted for using the equity method as of the beginning of the year |
|
1,982 |
2,956 |
Proportional net income |
|
250 |
196 |
Proportional change of other comprehensive income |
|
(21) |
(213) |
Total comprehensive income |
|
229 |
(17) |
Capital measures/dividends/changes in the scope of consolidation/other adjustments |
|
621 |
(966) |
Other adjustments of income and expense |
|
11 |
9 |
Investments accounted for using the equity method as of the end of the year |
|
2,843 |
1,982 |
Financial information on companies accounted for using the equity method (BASF stake) (in million €) |
|||
|
|
2015 |
2014 |
|---|---|---|---|
Income statement information |
|
|
|
Sales |
|
4,686 |
9,133 |
Income from operations |
|
427 |
455 |
Income before taxes and minority interests |
|
338 |
383 |
Net income |
|
275 |
283 |
|
|
|
|
Balance sheet information |
|
|
|
Noncurrent assets |
|
5,998 |
4,083 |
Thereof property, plant and equipment |
|
3,791 |
3,393 |
Current assets |
|
1,819 |
1,971 |
Thereof marketable securities, cash and cash equivalents |
|
334 |
299 |
Assets |
|
7,817 |
6,054 |
Equity |
|
4,494 |
2,605 |
Noncurrent liabilities |
|
2,285 |
2,152 |
Thereof financial indebtedness |
|
813 |
1,148 |
Current liabilities |
|
1,038 |
1,297 |
Thereof financial indebtedness |
|
248 |
367 |
Total equity and liabilities |
|
7,817 |
6,054 |
Neither of the companies accounted for using the equity method are deemed material for BASF. The table therefore includes the totals of the amounts from the financial statements of the companies accounted for using the equity method. Deviations between proportional equity and the carrying amount of shareholdings accounted for using the equity method are mainly a consequence of changes in equity not affecting profit or loss.