Chemicals

Q2 2021

Sales1 in the Chemicals segment rose considerably compared with the prior-year quarter, especially in the Petrochemicals division.

Factors influencing sales in Q2 2021 – Chemicals

 

Chemicals

Petrochemicals

Intermediates

Volumes

20%

19%

22%

Prices

78%

100%

37%

Portfolio

0%

–1%

0%

Currencies

–7%

–8%

–5%

Sales

91%

110%

54%

The sales increase was primarily due to significantly higher price levels, owing largely to strong demand alongside lower product availability. The Petrochemicals division increased prices significantly, in particular for cracker products, styrene monomers and acrylic monomers. Price levels also rose considerably in the Intermediates division, mainly in the butanediol and derivatives as well as in the acids and polyalcohols businesses.

Significantly higher volumes had a positive impact on sales in both divisions. The segment’s sales volumes had been heavily burdened by the effects of the coronavirus pandemic in the prior-year quarter. Volumes in the Petrochemicals division were higher, especially for styrene monomers, acrylic monomers and cracker products, while the Intermediates division increased volumes particularly in the butanediol and derivatives and in the acids and polyalcohols businesses.

Negative currency effects, mainly relating to the U.S. dollar, had an offsetting effect.

Income from operations (EBIT) before special items1 was considerably above the second quarter of 2020. This was largely attributed to considerably higher EBIT before special items in the Petrochemicals division, which resulted mainly from increased margins, greater sales volumes as well as a considerable improvement in income from equity-accounted companies. In the prior-year quarter, apart from the effects of the coronavirus pandemic, the division’s earnings had also been negatively impacted by scheduled turnarounds in Nanjing, China. EBIT before special items also rose considerably in the Intermediates division. This was due primarily to higher margins in the butanediol and derivatives business, improved income from equity-accounted companies and lower fixed costs.

1 For sales, “slight” represents a change of 1%–5%, while “considerable” applies to changes of 6% and higher. “At prior-year level” indicates no change (+/–0%). For earnings, “slight” means a change of 1%–10%, while “considerable” is used for changes of 11% and higher. “At prior-year level” indicates no change (+/–0%).

Segment data – Chemicals (Million €)

 

Q2

H1

 

2021

2020

+/–

2021

2020

+/–

Sales to third parties

3,419

1,791

91%

6,155

4,141

49%

of which Petrochemicals

2,467

1,173

110%

4,404

2,812

57%

Intermediates

952

618

54%

1,751

1,329

32%

Income from operations before depreciation, amortization and special items

1,168

216

441%

1,905

607

214%

Income from operations before depreciation and amortization (EBITDA)

1,162

210

453%

1,946

596

227%

Depreciation and amortizationa

181

228

–21%

360

444

–19%

Income from operations (EBIT)

981

–18

.

1,586

152

.

Special items

–9

–16

44%

38

–20

.

EBIT before special items

990

–2

.

1,548

172

.

Assets (June 30)

8,971

8,642

4%

8,971

8,642

4%

Investments including acquisitionsb

243

153

59%

371

513

–28%

Research and development expenses

25

24

4%

51

49

4%

a

Depreciation and amortization of property, plant and equipment and intangible assets (including impairments and reversals of impairments)

b

Additions to property, plant and equipment and intangible assets