Financial Position

Equity rose from €34,756 million as of December 31, 2017, to €35,301 million. The equity ratio declined from 44.1% to 43.1% due to higher total assets.

Noncurrent liabilities grew from €29,132 million to €29,883 million. This was attributable to the €1,104 million increase in noncurrent financial indebtedness, which in turn primarily reflected the issue of bonds in pounds sterling, euros and U.S. dollars with maturities of 4 to 12 years and an aggregate carrying amount of €1.7 billion. The reclassification of a eurobond with a carrying amount of €750 million to current financial indebtedness had an offsetting effect.

Noncurrent liabilities were mainly reduced by the €217 million decrease in provisions for pensions and similar obligations following discount rate hikes in all relevant currency zones, as well as the €114 million decrease in noncurrent other provisions.

Current liabilities rose from €14,880 million to €16,673 million. This was mainly due to the €1,153 million increase in current financial indebtedness, primarily from the issue of U.S. dollar commercial paper in the amount of €1.1 billion, as well as the previously mentioned reclassification of a eurobond. The scheduled repayment of two eurobonds with a combined carrying amount of around €800 million had an offsetting effect.

Overall, financial indebtedness grew by €2,257 million to €20,289 million. Net debt1 increased by €1,103 million as against December 31, 2017, to €12,588 million.

1 For an explanation of this indicator, the BASF Report 2017, Financial position.

Net debt (million €)



June 30, 2018

Dec. 31, 2017

Noncurrent financial indebtedness




+ Current financial indebtedness




Financial indebtedness




– Marketable securities




– Cash and cash equivalents




Net debt




In the first half of 2018, cash flows from operating activities amounted to €3,455 million, €347 million below the figure for the prior-year period. This was largely attributable to the higher level of cash tied up in miscellaneous items, mainly due to changes in pension provisions and defined benefit assets; cash was released in prior-year period. The change in net working capital, primarily as a result of the lower rise in trade accounts receivable, had an offsetting effect.

Cash flows from investing activities amounted to minus €1,735 million in the first half of 2018, compared with minus €2,365 million in the prior-year period. The improvement was mainly due to the year-on-year decline in cash outflows from the change in other financing-related receivables. Furthermore, at €1,449 million, payments made for property, plant and equipment and intangible assets were €193 million below the prior-year figure. Acquisitions and divestitures resulted in net payments received of €64 million, after net payments made of €65 million in the first half of 2017.

Cash flows from financing activities in the first half of 2018 amounted to minus €518 million, compared with minus €886 million in the prior-year period. This improvement was primarily attributable to higher net cash inflows from financial indebtedness. U.S. dollar commercial paper were issued in the current year after the program was scaled back in the prior-year period. By contrast, net payments received from the issue and repayment of bonds as well as from liabilities to credit institutions declined year on year. Dividends of €2,847 million were paid to shareholders of BASF SE in the first half of 2018, €92 million more than in the prior-year period. Minority shareholders of Group companies received €197 million in dividends, an increase of €115 million.

Free cash flow amounted to €2,006 million, compared with €2,160 million in the prior-year period. The decline in cash flows from operating activities could not be completely offset by the lower payments made for property, plant and equipment and intangible assets.

Free cash flow, 1st half (million €)





Cash flows from operating activities




– Payments made for property, plant and equipment and intangible assets




Free cash flow




Our ratings have remained unchanged since the publication of the BASF Report 2017. Rated “A1/P-1/outlook stable” by Moody’s, “A/A-1/outlook stable” by Standard & Poor’s and “A/S-1/outlook stable” by Scope, BASF enjoys good credit ratings, especially compared with competitors in the chemical industry. These ratings were most recently confirmed by Moody’s on June 29, 2018, by Scope on March 6, 2018, and by Standard & Poor’s on October 18, 2017.