Net Income from Shareholdings, Financial Result and Income After Taxes
Net income from shareholdings amounted to -€200 million in 2023 after -€4,939 million in 2022. In the previous year, net income from shareholdings was dampened by special charges of €6.3 billion, in particular from non-cash-effective impairments on Wintershall Dea, a non-integral shareholdings accounted for using the equity method, primarily in connection with the termination of business activities in Russia. Wintershall Dea’s earnings contribution in 2023 amounted to -€130 million and included special items of -€164 million for impairments and reversals of impairments as well as for provisions as part of the planned adjustment of the corporate structure.
Compared with the previous year, the €202 million decrease in the financial result was partly due to the €105 million lower interest result. Higher interest expenses for financial indebtedness, primarily as a result of higher interest rates, were only partially offset by higher interest income. In addition, the other financial result decreased by €97 million, mainly due to higher net expenses in connection with bonds in foreign currency and related hedging instruments.
Overall, income before income taxes amounted to €1,420 million in 2023, after €1,190 million in the previous year. Income tax expenses were €1,041 million (2022: €1,581 million). The tax rate of 73.3% was mainly due to valuation allowances on deferred tax assets on loss carryforwards as well as their nonrecognition, particularly in Germany.
The decrease in noncontrolling interests by €82 million to €154 million primarily resulted from lower earnings contributions from the BASF Shanshan companies in China.
Net income was €225 million compared with -€627 million in 2022.
Earnings per share amounted to €0.25 (2022: -€0.70).