Business Review
At a glance
- Sales rise 68.2% to €13,579 million, mainly due to higher prices
- EBIT before special items improves by 568.3% to €2,974 million
At €13,579 million, sales to third parties in the Chemicals segment were €5,508 million above the prior-year figure in 2021. Both divisions contributed to the increase with considerable sales growth. The Petrochemicals division increased sales by €4,248 million to €9,674 million, while sales in the Intermediates division rose by €1,259 million to €3,904 million.
|
Chemicals |
Petrochemicals |
Intermediates |
---|---|---|---|
Volumes |
9.6% |
10.5% |
7.9% |
Prices |
61.2% |
71.5% |
40.2% |
Portfolio |
–0.7% |
–1.0% |
0.0% |
Currencies |
–1.9% |
–2.6% |
–0.4% |
Sales |
68.2% |
78.3% |
47.6% |
Sales performance was mainly driven by significantly higher price levels. This was largely due to strong demand alongside low product availability, mainly caused by extreme weather conditions such as Winter Storm Uri in North America, supply chain disruptions, as well as significantly higher feedstock and energy costs. As a result, the Petrochemicals division increased prices in all business areas, especially for steam cracker products, styrene monomers and along the entire propylene value chain. The Intermediates division raised prices in the butanediol and derivatives business in particular, as well as in the acids and polyalcohols business.
Sales growth was supported by a significant increase in volumes due to strong demand. Volumes in the Petrochemicals division grew mainly in steam cracker products and styrene monomers. The Intermediates division increased volumes primarily in the butanediol and derivatives business and in the acids and polyalcohols business. The amines business in Europe also posted significant volume growth. In the previous year, volume development was significantly weighed down by the impact of the coronavirus pandemic and the unplanned outage of the steam cracker in Port Arthur, Texas.
Sales growth was curbed by negative currency effects, mainly relating to the U.S. dollar.
Sales development was slightly dampened by portfolio effects in the Petrochemicals division from the disposal of our share in the condensate splitter in Port Arthur, Texas, to Total Petrochemicals & Refining USA, Inc.
|
|
2021 |
2020 |
+/– |
||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sales to third parties |
|
13,579 |
8,071 |
68.2% |
||||||||||
of which Petrochemicals |
|
9,674 |
5,426 |
78.3% |
||||||||||
Intermediates |
|
3,904 |
2,645 |
47.6% |
||||||||||
Intersegment transfers |
|
4,269 |
2,861 |
49.2% |
||||||||||
Sales including transfers |
|
17,848 |
10,932 |
63.3% |
||||||||||
Income from operations before depreciation, amortization and special items |
|
3,724 |
1,305 |
185.4% |
||||||||||
Income from operations before depreciation and amortization (EBITDA) |
|
3,764 |
1,237 |
204.3% |
||||||||||
EBITDA margin |
% |
27.7 |
15.3 |
− |
||||||||||
Depreciation and amortizationa |
|
767 |
1,429 |
–46.3% |
||||||||||
Income from operations (EBIT) |
|
2,997 |
–192 |
. |
||||||||||
Special items |
|
23 |
–637 |
. |
||||||||||
EBIT before special items |
|
2,974 |
445 |
568.3% |
||||||||||
Return on capital employed (ROCE) |
% |
32.9 |
–2.2 |
− |
||||||||||
Assets |
|
10,369 |
7,896 |
31.3% |
||||||||||
Investments including acquisitionsb |
|
1,157 |
871 |
32.9% |
||||||||||
Research and development expenses |
|
97 |
96 |
1.1% |
||||||||||
|
Compared with 2020, income from operations (EBIT) before special items rose by €2,529 million to €2,974 million as a result of considerable earnings growth in both divisions. In both the Petrochemicals and Intermediates divisions, this was primarily attributable to significantly higher margins, higher sales volumes and improved income from investments accounted for using the equity method.
EBIT amounted to €2,997 million, an improvement of €3,189 million compared with the previous year. This included special income from the disposal of our share in the condensate splitter in the first quarter of 2021. In the previous year, special items were mainly impacted by impairments.
Divisions |
Europe |
North America |
Asia Pacific |
South America, |
Total |
---|---|---|---|---|---|
Petrochemicals |
56% |
28% |
11% |
5% |
9,674 |
Intermediates |
37% |
15% |
45% |
3% |
3,904 |