Results of Operations
At €21,946 million, sales were €2,277 million higher than in the prior-year quarter. The sales increase was mainly driven by much higher prices in almost all segments. Only the Surface Technologies segment recorded lower price levels as a result of lower precious metal prices. Currency effects had a positive impact in all segments. Sales growth was also boosted by portfolio effects in the Surface Technologies segment following the acquisition of a majority shareholding in BASF Shanshan Battery Materials Co., Ltd. Sales development was significantly dampened by lower volumes in all segments except for Agricultural Solutions.
Factors influencing BASF Group sales in Q3 2022
Income from operations (EBIT) before special items1 declined by €517 million compared with the third quarter of 2021 to €1,348 million. This was primarily attributable to significantly lower EBIT before special items in the Chemicals and Materials segments. Considerable earnings growth in the Surface Technologies, Agricultural Solutions, Nutrition & Care and Industrial Solutions segments was unable to compensate for this. EBIT before special items also improved considerably in Other.
Special items in EBIT amounted to –€53 million in the third quarter of 2022. Net expenses from restructuring measures, integration costs and other items totaling €64 million were partially offset by income from divestitures totaling €11 million, in particular from the sale of the kaolin minerals business.
At €1,294 million, EBIT2 was considerably below the prior-year quarter (€1,822 million). This figure includes income from integral companies accounted for using the equity method, which declined by €124 million to €76 million, mainly due to the lower earnings contribution from BASF-YPC Company Ltd., Nanjing, China.
Compared with the third quarter of 2021, income from operations before depreciation, amortization and special items (EBITDA before special items)3 decreased by €446 million to €2,325 million and EBITDA3 declined by €474 million to €2,255 million.
1 For an explanation of this indicator, see Our Steering Concept in the BASF Report 2021.
2 The calculation of income from operations (EBIT) is shown in the Statement of Income.
3 For an explanation of this indicator, see Results of Operations in the BASF Report 2021.
|
|
2022 |
2021 |
|||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
Income after taxes |
|
952 |
1,381 |
|||||||||
– Special itemsa |
|
–569 |
–43 |
|||||||||
+ Amortization, impairments and reversals of impairments on intangible assets |
|
163 |
156 |
|||||||||
– Amortization, impairments and reversals of impairments on intangible assets contained in special items |
|
− |
− |
|||||||||
– Adjustments to income taxes |
|
48 |
59 |
|||||||||
– Adjustments to income after taxes from discontinued operations |
|
− |
–43 |
|||||||||
Adjusted income after taxes |
|
1,635 |
1,564 |
|||||||||
– Adjusted noncontrolling interests |
|
46 |
132 |
|||||||||
Adjusted net income |
|
1,589 |
1,432 |
|||||||||
Weighted average number of outstanding sharesb |
in thousands |
897,372 |
918,479 |
|||||||||
Adjusted earnings per share |
€ |
1.77 |
1.56 |
|||||||||
|
||||||||||||
|
2022 |
2021 |
|---|---|---|
EBIT |
1,294 |
1,822 |
– Special items |
–53 |
–43 |
EBIT before special items |
1,348 |
1,865 |
+ Depreciation and amortization before special items |
974 |
891 |
+ Impairments and reversals of impairments on property, plant and equipment and intangible assets before special items |
4 |
15 |
Depreciation, amortization, impairments and reversals of impairments on property, plant and equipment and intangible assets before special items |
977 |
906 |
EBITDA before special items |
2,325 |
2,771 |
|
2022 |
2021 |
|---|---|---|
EBIT |
1,294 |
1,822 |
+ Depreciation and amortization |
974 |
891 |
+ Impairments and reversals of impairments on property, plant and equipment and intangible assets |
–13 |
16 |
Depreciation, amortization, impairments and reversals of impairments on property, plant and equipment and intangible assets |
960 |
907 |
EBITDA |
2,255 |
2,729 |
Net income from shareholdings rose by €16 million compared with the prior-year quarter to €102 million. Income from non-integral companies accounted for using the equity method included special charges for impairments of approximately €740 million recognized in connection with damages to the Nord Stream 1 pipelines, in which BASF holds an indirect interest via Wintershall Dea AG. The operational result (after tax) of Wintershall Dea attributable to BASF rose by €533 million compared with the third quarter of 2021 to €630 million.
The financial result declined by €26 million compared with the prior-year quarter. This was primarily attributable to the €44 million lower interest result, mainly due to higher interest expenses for financial indebtedness.
Overall, income before income taxes decreased by €538 million compared with the prior-year quarter to €1,239 million in the third quarter of 2022. The tax rate rose to 23.2% (Q3 2021: 19.9%).
Income after taxes declined by €429 million compared with the third quarter of 2021 to €952 million. The decrease in noncontrolling interests to €42 million (Q3 2021: €128 million) mainly resulted from lower earnings contributions from BASF TotalEnergies Petrochemicals LLC, Port Arthur, Texas, and from BASF Petronas Chemicals Sdn. Bhd., Petaling Jaya, Malaysia.
Earnings per share amounted to €1.01 in the third quarter of 2022 (Q3 2021: €1.36). Earnings per share adjusted4 for special items and amortization of intangible assets amounted to €1.77 (Q3 2021: €1.56).
4 For an explanation of this indicator, see Results of Operations in the BASF Report 2021.