Chemicals
Q2 2022
Sales1 in the Chemicals segment rose considerably compared with the second quarter of 2021. Both operating divisions contributed to the increase.
|
Chemicals |
Petrochemicals |
Intermediates |
|---|---|---|---|
Volumes |
–3.9% |
–2.2% |
–8.4% |
Prices |
24.9% |
23.6% |
28.2% |
Portfolio |
–0.1% |
–0.1% |
–0.1% |
Currencies |
6.4% |
6.1% |
6.9% |
Sales |
27.2% |
27.4% |
26.6% |
Sales growth was primarily driven by significantly higher prices in both divisions, mainly 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 achieved higher price levels across all business areas.
Sales performance was supported by positive currency effects, mainly relating to the U.S. dollar.
Overall, sales volumes were slightly lower than in the prior-year quarter. This was primarily attributable to coronavirus lockdowns in China and the resulting supply chain disruptions. Consequently, the Intermediates division recorded considerably lower sales volumes in the butanediol and derivatives business in particular. The slight decline in volumes in the Petrochemicals division mainly related to steam cracker products, styrene monomers and acrylics.
Income from operations (EBIT) before special items1 remained at a high level but was considerably below the exceptionally strong earnings in the prior-year quarter. This was primarily due to considerably lower earnings in the Petrochemicals division, mainly from higher fixed costs as a result of the increase in energy prices and currency effects. Lower income from investments accounted for using the equity method also contributed to the decrease. By contrast, the earnings development in the division was positively impacted by continued strong margins. EBIT before special items declined slightly in the Intermediates division. Higher margins in North America on the back of continued strong demand were not able to fully compensate for lower margins and volumes in the Asia Pacific region resulting from the lockdowns, and for higher fixed costs from turnarounds, especially in Ludwigshafen, Germany.
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%).
|
Q2 |
H1 |
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
2022 |
2021 |
+/– |
2022 |
2021 |
+/– |
||||||||||||||
Sales to third parties |
4,349 |
3,419 |
27.2% |
8,353 |
6,155 |
35.7% |
||||||||||||||
of which Petrochemicals |
3,143 |
2,467 |
27.4% |
5,906 |
4,404 |
34.1% |
||||||||||||||
Intermediates |
1,206 |
952 |
26.6% |
2,447 |
1,751 |
39.7% |
||||||||||||||
Income from operations before depreciation, amortization and special itemsa |
1,050 |
1,196 |
–12.1% |
2,098 |
1,961 |
7.0% |
||||||||||||||
Income from operations before depreciation and amortization (EBITDA)a |
1,048 |
1,189 |
–11.9% |
2,095 |
2,002 |
4.6% |
||||||||||||||
Depreciation and amortizationb |
197 |
181 |
9.0% |
386 |
360 |
7.3% |
||||||||||||||
Income from operations (EBIT)a |
851 |
1,010 |
–15.7% |
1,708 |
1,643 |
4.0% |
||||||||||||||
Special items |
–3 |
–9 |
71.9% |
–4 |
38 |
. |
||||||||||||||
EBIT before special itemsa |
853 |
1,018 |
–16.1% |
1,712 |
1,604 |
6.7% |
||||||||||||||
Assets (June 30)a |
11,705 |
9,051 |
29.3% |
11,705 |
9,051 |
29.3% |
||||||||||||||
Investments including acquisitionsc |
314 |
243 |
29.1% |
542 |
371 |
46.1% |
||||||||||||||
Research and development expenses |
25 |
25 |
–1.4% |
50 |
51 |
–2.5% |
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