BASF Report 2022

25. Other Financial Obligations

The figures listed below are stated at nominal value:

Other financial obligations (Million €)

 

Dec. 31, 2022

Dec. 31, 2021

Bills of exchange

5

3

Guarantees

41

383

Warranties

33

58

Collateral granted on behalf of third-party liabilities

1

1

Initiated investment projects

13,982

4,761

of which purchase commitments

5,019

1,481

for the purchase of intangible assets

10

10

Payment and loan commitments and other financial obligations

293

263

BASF SE provides a guarantee to Abu Dhabi National Oil Corporation covering all obligations of Wintershall Dea Middle East GmbH related to the Ghasha concession in the United Arab Emirates. Furthermore, BASF SE assumed guarantees to the Danish Energy Agency covering all obligations of Wintershall Dea Interna­tional GmbH and Wintershall Noordzee B.V. related to licenses for exploration and production of hydrocarbons in the Danish concession area. The guarantees do not stipulate a maximum amount. The risk of a claim being exercised against the guarantees is classified as low. The decline in guarantees resulted primarily from the fact that BASF SE’s guarantees were no longer in existence for abandonment obligations of Wintershall Dea Norge AS for various oil and gas facilities acquired from Equinor as of December 31, 2022.

The rise in obligations from initiated investment projects is mainly attributable to the construction of BASF’s new Verbund site in Zhanjiang, China.

Obligations arising from purchase contracts

Obligations from purchase contracts resulted primarily from long-term purchase obligations for raw materials as well as supply agreements for energy from renewable sources. The decline is mainly attributable to lower purchase obligations for raw materials.

Firm purchase obligations as of December 31, 2022, were as follows:

Obligations arising from purchase contracts (Million €)

 

Dec. 31, 2022

Dec. 31, 2021

Following year 1

9,353

9,686

Following year 2

2,703

4,963

Following year 3

2,150

1,832

Following year 4

2,058

1,716

Following year 5

1,975

1,720

Following year 6 and maturities beyond this year

8,876

9,644a

Total

27,116

29,561

a

Pursuant to IAS 8 a retrospective adjustment to obligations from purchase contracts was carried out in the amount of €2,179 million.

Verbund
In the BASF Verbund, plants are intelligently connected. In this system, chemical processes consume less energy, produce higher product yields and conserve resources. The by-products of one plant serve as feedstock elsewhere, creating efficient value chains\_– from basic chemicals to high value-added solutions such as coatings or crop protection products. Our Verbund concept – realized in production, technologies, the market and digitalization – enables innovative solutions for a sustainable future.

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