Chemicals

Q3 2021

Sales1 in the Chemicals segment increased considerably compared with the third quarter of 2020. Both divisions recorded significant sales growth, especially Petrochemicals.

Factors influencing sales in Q3 2021 - Chemicals

 

Chemicals

Petro­chemicals

Intermediates

Volumes

12%

15%

8%

Prices

95%

114%

60%

Portfolio

0%

–1%

0%

Currencies

0%

–1%

2%

Sales

107%

127%

70%

Considerably higher price levels were a primary driver of sales performance. The rise in prices was largely due to strong demand alongside low product availability and higher raw materials prices. Prices rose in all business areas of both divisions. The Petrochemicals division raised them particularly for steam cracker products, styrene monomers and acrylic monomers. Prices in the Intermediates division were raised considerably, especially in the butanediol and derivatives business and in the acids and polyalcohols business.

Sales growth was supported by a considerable increase in volumes due to strong demand. Volumes in the Petrochemicals division grew mainly in steam cracker products and styrene monomers, while Intermediates increased volumes primarily in the acids and polyalcohols business and in the butanediol and derivatives business. The segment’s sales volume development in the prior-year quarter had been significantly weighed down by the impact of the coronavirus pandemic and the unplanned outage at the steam cracker in Port Arthur, Texas.

Income from operations (EBIT) before special items1 was considerably above the level of the prior-year quarter. This was mainly due to the significantly higher earnings contribution from Petrochemicals, resulting primarily from increased margins, higher volumes and improved income from shareholdings accounted for using the equity method. The Intermediates division also significantly increased EBIT before special items. The primary growth drivers were improved margins in the butanediol and derivatives business and increased income from shareholdings accounted for using the equity method.

The decline in special items in the third quarter of 2021 was due primarily to the special charges for impairments in the prior-year quarter.

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 €)

 

Q3

January–September

 

2021

2020

+/–

2021

2020

+/–

Sales to third parties

3,693

1,783

107%

9,848

5,924

66%

of which Petrochemicals

2,648

1,169

127%

7,052

3,981

77%

Intermediates

1,045

614

70%

2,796

1,943

44%

Income from operations before depreciation, amortization and special items

1,042

258

304%

2,947

865

241%

Income from operations before depreciation and amortization (EBITDA)

1,040

249

318%

2,986

845

253%

Depreciation and amortizationa

190

753

–75%

550

1,197

–54%

Income from operations (EBIT)

850

–504

.

2,436

–352

.

Special items

–550

38

–570

.

EBIT before special items

850

46

.

2,398

218

.

Assets (September 30)

9,646

7,860

23%

9,646

7,860

23%

Investments including acquisitionsb

248

169

47%

619

682

–9%

Research and development expenses

22

23

–4%

73

72

1%

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