BASF Report 2021

Net Income from Shareholdings, Financial Result and Income After Taxes

Net income from shareholdings was above the prior-year figure, rising by €1,116 million to €207 million in 2021 (2020: –€909 million). The increase was mainly due to special income from the sale of our shares in Solenis (€589 million) as well as the improved earnings contribution from Wintershall Dea AG (–€344 million). This included impairments in the amount of €581 million, less than in the prior year.

The financial result amounted to –€436 million, compared with –€462 million in the previous year. The interest result improved by €59 million overall, due in part to lower interest expenses for financial indebtedness. The other financial result amounted to –€122 million after –€89 million in 2020, primarily driven by higher net expenses in connection with bonds in foreign currency and the corresponding hedging instruments. Lower write-downs on securities and loans, as well as a lower net interest expense from pension plans and similar obligations had an offsetting effect.

Income before income taxes amounted to €7,448 million in 2021, after –€1,562 million in 2020.

Income tax expenses were €1,430 million, after the negative pre-tax result had led to tax income of €91 million in the previous year.

Compared with 2020, income after taxes from continuing operations rose by €7,489 million to €6,018 million. Income after taxes from discontinued operations amounting to –€36 million resulted from purchase price adjustments for the divestiture of the construction chemicals business. The prior-year figure of €396 million included the book gain from the sale of the former Construction Chemicals division and its operating income after taxes until divestiture.

Income after taxes in the amount of €5,982 million (2020: –€1,075 million) included €5,523 million attributable to shareholders of BASF SE (2020: –€1,060 million). Noncontrolling interests amounted to €459 million, after –€15 million in the prior year. This mainly resulted from a higher earnings contribution from BASF TotalEnergies Petrochemicals LLC in Port Arthur, Texas, and a positive earnings contribution from BASF Petronas Chemicals Sdn. Bhd. Petaling Jaya, Malaysia, where earnings in the prior year had been impacted by impairments.

In 2021, earnings per share amounted to €6.01, compared with –€1.15 in the previous year.