Chemicals
Q1 2022
Sales1 in the Chemicals segment rose considerably compared with the prior-year quarter. Both operating divisions contributed to the increase.
|
Chemicals |
Petrochemicals |
Intermediates |
---|---|---|---|
Volumes |
0.2% |
1.3% |
–2.5% |
Prices |
41.3% |
37.0% |
51.7% |
Portfolio |
–0.1% |
–0.1% |
–0.1% |
Currencies |
4.9% |
4.4% |
6.1% |
Sales |
46.3% |
42.6% |
55.3% |
Sales growth was primarily driven by significantly higher prices in both divisions. This was due to the passing on of increased prices for raw materials and energy amid continued strong demand. The Petrochemicals division raised prices in all business areas, especially for steam cracker products, styrene monomers and in the propylene and butadiene value chains. The Intermediates division raised prices, particularly in the butanediol and derivatives business, the amines business and in the acids and polyalcohols business.
Sales performance was supported by positive currency effects, mainly relating to the U.S. dollar.
Overall, sales volumes were slightly above the prior-year quarter amid stable demand. Slightly higher volumes in the Petrochemicals division more than compensated for slightly lower volumes in the Intermediates division.
Income from operations (EBIT) before special items1 rose considerably compared with the first quarter of 2021, mainly due to higher margins in both divisions. The Intermediates division significantly improved margins across all business areas in North America and Asia Pacific. This more than compensated for lower margins in Europe in the butanediol and derivatives business and in the acetylenics and carbonyl derivatives business as a result of the sharp rise in natural gas prices. Income from shareholdings accounted for using the equity method also improved, contributing to earnings growth. The increase in earnings in the Petrochemicals division was driven by higher margins in the propylene and butadiene value chains and for styrene monomers. This more than compensated for lower margins for steam cracker products due to higher raw materials and energy prices. Higher fixed costs, partly due to currency effects and higher energy and gas prices, had an offsetting effect.
|
|
2022 |
2021 |
+/– |
||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sales to third parties |
|
4,004 |
2,736 |
46.3% |
||||||||||||
of which Petrochemicals |
|
2,763 |
1,937 |
42.6% |
||||||||||||
Intermediates |
|
1,241 |
799 |
55.3% |
||||||||||||
Income from operations before depreciation, amortization and special itemsa |
|
1,048 |
766 |
36.8% |
||||||||||||
Income from operations before depreciation and amortization (EBITDA)a |
|
1,046 |
813 |
28.7% |
||||||||||||
Depreciation and amortizationb |
|
189 |
179 |
5.7% |
||||||||||||
Income from operations (EBIT)a |
|
857 |
633 |
35.4% |
||||||||||||
Special items |
|
–1 |
47 |
. |
||||||||||||
EBIT before special itemsa |
|
858 |
586 |
46.5% |
||||||||||||
Assets (March 31)a |
|
11,367 |
8,476 |
34.1% |
||||||||||||
Investments including acquisitionsc |
|
228 |
128 |
78.2% |
||||||||||||
Research and development expenses |
|
25 |
26 |
–3.5% |
||||||||||||
|
1 For sales, “slight” represents a change of 0.1%–5.0%, while “considerable” applies to changes of 5.1% and higher. “At prior-year level” indicates no change (+/–0.0%). For earnings, “slight” means a change of 0.1%–10.0%, while “considerable” is used for changes of 10.1% and higher. “At prior-year level” indicates no change (+/–0.0%).