Financial Position

Equity stood at €36,884 million, on a level with December 31, 2023. Retained earnings declined by €1,634 million compared with the end of the previous year. This resulted mainly from dividend payments to the shareholders of BASF SE for 2023 in the amount of €3,035 million and from net income in the amount of €1,298 million. Other comprehensive income rose by €1,956 million, in particular as a result of actuarial gains and currency effects.

On account of the increase in total assets, the equity ratio stood at 45.9%, down on the prior-year figure (47.3%).

Noncurrent liabilities increased by €1,614 million compared with the 2023 year-end, mainly due to the €2,037 million rise in noncurrent financial indebtedness. This increase was primarily attributable to the issue of new bonds with a carrying amount of around €1.7 billion, of which around €1.4 billion related to private placements, and extending the utilization of the credit line in China for the construction of the Verbund site in Zhanjiang by around €2 billion. This was offset by the reclassification of five bonds, with a total carrying amount of around €1.7 billion, from noncurrent to current financial indebtedness.

Provisions for pensions and similar obligations decreased by €493 million compared with December 31, 2023, mainly due to slightly higher interest rates and income on plan assets.

Deferred tax liabilities declined by €135 million, whereas income tax provisions remained on a level with the previous year.

The increase of €199 million in other provisions was mainly due to increased provisions for restoration obligations and for contract liabilities, particularly in connection with the planned closure of the glufosinate-ammonium production plants in Germany.

Current liabilities rose by €1,169 million compared with December 31, 2023, to €17,039 million. Trade accounts payable were up by €181 million on the prior year-end figure. The €105 million increase in current provisions was mainly due to higher provisions for emission rights.

At €404 million, income tax liabilities were down slightly on the prior-year level.

The aforementioned reclassification of bonds from noncurrent to current financial indebtedness was the main cause of the €457 million increase in financial liabilities. This was offset by the scheduled repayment of a bond with a carrying amount of €500 million as well as the €710 million decrease in liabilities to banks, mainly due to the repayment of two loans.

Compared with the previous year, other liabilities rose by €424 million, in particular due to the liability relating to the class settlement in connection with the AFFF multidistrict litigation in the United States.

Liabilities of disposal groups stood at €39 million.

Net debt amounted to €18,781 million on December 31, 2024, and was therefore around €2.2 billion higher than the figure at the end of the previous year.

Off-balance sheet obligations

Off-balance sheet obligations amounting to €29 billion (2023: €30 billion) mainly relate to long-term purchase obligations for raw materials and long-term supply agreements for electricity from renewable sources. In addition, obligations exist in connection with initiated or planned investment projects amounting to €7 billion (2023: €11 billion), primarily in connection with the construction of the new Verbund site in Zhanjiang, China (for more information, see Capital expenditures).