Chemicals
Please note
The audited BASF Report will be published on March 21, 2025. The key financial figures published here are therefore to be regarded as preliminary. From today's perspective, no adjustments are expected.
The content of this section is not part of the statutory audit of the annual financial statements but has undergone a separate limited assurance by our auditor.
The content of this section is voluntary, unaudited information, which was critically read by the auditor.
The Chemicals segment comprises the Petrochemicals and Intermediates operating divisions. It contributes to our direct customer business and supplies the other segments with basic chemicals and intermediates, contributing to the organic growth of our key value chains. Alongside internal transfers, our customers mainly come from the chemical and plastics industries. We aim to further strengthen our competitiveness through technological leadership, operational excellence and products with a lower carbon footprint.
At a glance
€1,342 million
EBITDA before special items
2023: €1,167 million
–€2,051 million
Segment cash flow
2023: –€936 million
Compared with the previous year, sales in the Chemicals segment rose. Sales growth in the Petrochemicals division more than made up for the decline in the Intermediates division.
|
Chemicals |
Petrochemicals |
Intermediates |
|---|---|---|---|
Volumes |
8.1% |
8.7% |
6.8% |
Prices |
–3.1% |
0.3% |
–11.7% |
Currencies |
–0.5% |
–0.5% |
–0.6% |
Portfolio |
– |
– |
– |
Sales |
4.5% |
8.5% |
–5.5% |
The increase in sales were mainly attributable to higher volumes in both divisions, due primarily to lower imports to Europe in the first half of 2024 as a result of the conflict in the Red Sea, as well as both planned and unplanned plant shutdowns among competitors. The Petrochemicals division increased volumes across all value chains, particularly in the propylene value chain, for steam cracker products as well as styrene monomers. The Intermediates division posted higher sales volumes, especially in Europe, in the amines as well as acids and polyalcohols business areas.
By contrast, lower prices in all business areas of the Intermediates division weighed on sales performance for the segment. This development was mainly driven by overcapacities in the market. Prices were slightly above the prior-year level in the Petrochemicals division, with higher prices for steam cracker products making up for lower prices in the propylene value chain.
Minor negative currency effects in both divisions resulted primarily from the Brazilian real and the Chinese renminbi.
EBITDA before special items1 for the Chemicals segment rose considerably compared with the prior-year figure. The increase was based on considerable earnings growth in the Petrochemicals division. The division improved EBITDA before special items, thanks in particular to a volume-related increase in the contribution margin, especially the margin for steam cracker products. Higher fixed costs, which were predominantly incurred in connection with the construction of the Verbund site in Zhanjiang, China, had an offsetting effect. In the Intermediates division, EBITDA before special items declined considerably. The decrease was attributable above all to a price-related decrease in the contribution margin in North America, especially in the butanediol and derivatives business and a lower earnings contribution from equity-accounted shareholdings in China.
Segment cash flow1 was considerably below the prior-year figure in both divisions. This was mainly driven by higher capital expenditures, especially for the construction of the Verbund site in China. A buildup in inventories to support the increase in sales volumes had an additional negative impact on the segment’s cash flow development. Both divisions had reduced inventories in the prior-year period.
Million € |
|
2024 |
2023 |
+/– |
||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sales to third parties |
|
10,838 |
10,369 |
4.5% |
||||||||||
of which Petrochemicals |
|
8,050 |
7,418 |
8.5% |
||||||||||
Intermediates |
|
2,788 |
2,951 |
–5.5% |
||||||||||
Intersegment transfers |
|
3,962 |
3,606 |
9.9% |
||||||||||
Sales including transfers |
|
14,800 |
13,975 |
5.9% |
||||||||||
EBITDA before special items |
|
1,342 |
1,167 |
15.0% |
||||||||||
Special items in EBITDA |
|
–28 |
0 |
. |
||||||||||
EBITDA |
|
1,314 |
1,167 |
12.6% |
||||||||||
EBITDA margin before special items |
% |
12.4 |
11.3 |
– |
||||||||||
Depreciation and amortizationa |
|
885 |
803 |
10.3% |
||||||||||
EBIT before special items |
|
503 |
361 |
39.4% |
||||||||||
Special items in EBIT |
|
–74 |
4 |
. |
||||||||||
Income from operations (EBIT) |
|
429 |
364 |
17.7% |
||||||||||
Investments including acquisitionsb |
|
3,403 |
2,706 |
25.8% |
||||||||||
Segment cash flow |
|
–2,051 |
–936 |
–119.2% |
||||||||||
Assets (December 31) |
|
14,266 |
11,468 |
24.4% |
||||||||||
Research and development expenses |
|
80 |
83 |
–4.4% |
||||||||||
|
||||||||||||||
Chemicals – sales by region
By location of customer
1 For EBITDA before special items and cash flow, “slight” means a change of 0.1%–10.0%, while “considerable” and its synonyms are used for changes of 10.1% and higher. “At prior-year level” indicates no change (+/–0.0%).
These contents fulfill the disclosure requirements of the European Sustainability Reporting Standards (ESRS).