2.3 – Joint Ventures and Associated Companies

BASF has a shareholding in a material joint venture. BASF-YPC Company Ltd., Nanjing, China, is operated by BASF together with its partner, Sinopec, at the Verbund site in Nanjing. BASF’s share equals 50%.

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Financial information on BASF-YPC Company Ltd., Nanjing, China (100%) (Million €)

 

2018

2017

Balance sheet

 

 

 

Noncurrent assets

 

1,110

1,254

Current assets

 

932

908

of which marketable securities, cash and cash equivalents

 

201

231

Assets

 

2,042

2,162

 

 

 

 

Equity

 

1,691

1,756

Noncurrent liabilities

 

29

124

of which financial indebtedness

 

28

122

Current liabilities

 

322

282

of which financial indebtedness

 

92

30

Total equity and liabilities

 

2,042

2,162

 

 

 

 

Statement of income

 

 

 

Sales revenue

 

2,764

2,761

Depreciation and amortization

 

206

207

Interest income

 

5

5

Interest expenses

 

6

9

Income taxes

 

112

159

Income after taxes

 

343

473

 

 

 

 

Carrying amount according to the equity method as of the beginning of the year

 

879

881

Proportional income after taxes

 

171

236

Proportional change of other comprehensive income

 

(6)

(59)

Total comprehensive income

 

165

177

Capital measures/dividends/changes in the scope of consolidation/other adjustments

 

(197)

(179)

of which dividends

 

(197)

(179)

Other adjustments to income and expenses

 

–

–

Carrying amount according to the equity method as of the end of the year

 

847

879

W & G Infrastruktur Finanzierungs-GmbH, Kassel, Germany, (BASF interest: 50%), a material joint venture in 2017, was reclassified to assets of disposal groups.

Non-material joint ventures accounted for using the equity method include, in particular:

  • Heesung Catalysts Corporation, Seoul, South Korea, which is operated jointly with the partner Heesung (BASF interest: 50%)
  • N.E. Chemcat Corporation, Tokyo, Japan, which is operated jointly with the partner Sumitomo Metal Mining Co. Ltd. (BASF interest: 50%)

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Non-material joint ventures accounted for using the equity method (BASF interest) (Million €)

 

 

2018

2017

1

This item includes accumulated effects from the discontinued business in the amount of €12 million in 2018 (€70 million in 2017).

2

In 2018, the amount of €939 million was transferred to the assets of the oil and gas disposal group.

Carrying amount according to the equity method as of the beginning of the year

 

1,509

823

Proportional income after taxes1

 

106

197

Proportional change of other comprehensive income

 

16

(27)

Total comprehensive income

 

122

170

Capital measures/dividends/changes in the scope of consolidation/other adjustments2

 

(1,054)

528

Other adjustments to income and expenses1

 

(24)

(12)

Carrying amount according to the equity method as of the end of the year

 

553

1,509

The material associated company in 2017, Joint Stock Company Achim Trading, Moscow, Russia (BASF interest: 18.01%, economic share: 25.01%), was transferred to the assets of disposal groups.

Non-material associated companies accounted for using the equity method include, in particular:

  • Stahl Lux 2 S.A., Luxembourg (BASF interest: 16.6%) is classified as an associated company as BASF can exercise significant influence over the company due to the fact that its approval is required for certain relevant board resolutions
  • Yara Freeport LLC, Wilmington, Delaware (BASF interest: 32%)
  • CIMO Compagnie industrielle de Monthey S.A., Monthey, Switzerland (BASF interest: 50%)
  • BASF Huntsman Shanghai Isocyanate Investment B.V., Arnheim, Netherlands (BASF interest: 50%)

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Non-material associated companies accounted for using the equity method (BASF interest) (Million €)

 

 

2018

2017

3

This item includes effects from discontinued operations in the amount of €87 million in 2018 (€178 million in 2017).

4

In 2018, the amount of €1,613 million was transferred to the assets of the oil and gas disposal group.

Carrying amount according to the equity method as of the beginning of the year

 

2,327

2,943

Proportional income after taxes3

 

115

151

Proportional change of other comprehensive income

 

11

(31)

Total comprehensive income

 

126

120

Capital measures/dividends/changes in the scope of consolidation/other adjustments4

 

(1,650)

(735)

Other adjustments to income and expenses3

 

–

(1)

Carrying amount according to the equity method as of the end of the year

 

803

2,327