Homepage  Homepage     Search on site  Search on site     To write the letter  To write the letter     Site map  Site map
Agro Perspectiva
We are on: 
   
 


Home > News

BASF achieves strong EBIT before special items despite significantly higher energy and raw materials prices

29.04.2022 14:03 "Agro Perspectiva" (Kyiv) — Sales grow to ˆ23.1 billion (plus 19%)

EBIT before special items of ˆ2.8 billion (plus 21%)

Outlook from February 25, 2022, maintained for the 2022 business year

The first quarter of 2022 was characterized by significantly higher energy and raw materials prices as well as supply chain disruptions. «Nevertheless, we had a very good start to the year 2022,» said Dr. Martin Brudermüller, Chairman of the Board of Executive Directors of BASF SE, at the company’s virtual Annual Shareholders’ Meeting this year. BASF had already released preliminary figures on April 11, 2022.

Sales rose by ˆ3.7 billion compared with the first quarter of 2021 to ˆ23.1 billion. Sales growth was mainly driven by higher prices, especially in the Chemicals and Materials segments. Positive currency effects in all segments supported sales performance. Slightly lower sales volumes overall had an offsetting effect. Volumes growth in the Agricultural Solutions, Industrial Solutions, Materials, Nutrition & Care and Chemicals segments could not fully offset the decline in volumes in the Surface Technologies segment.

Income from operations (EBIT) before special items increased by ˆ497 million to ˆ2.8 billion. This was largely attributable to considerable earnings growth in the Chemicals segment. The Industrial Solutions, Materials and Nutrition & Care segments also significantly increased EBIT before special items. The Agricultural Solutions segment recorded slightly higher EBIT before special items. EBIT before special items in the Surface Technologies segment declined considerably, primarily as a result of much weaker demand from the automotive industry.

EBIT rose by ˆ474 million compared with the first quarter of 2021 to ˆ2.8 billion. Net income amounted to ˆ1.2 billion, compared with ˆ1.7 billion in the prior-year quarter. This is due to impairment charges recognized by Wintershall Dea, which BASF included in net income from shareholdings on a proportional basis (72.7 percent) as a special charge of around ˆ1.1 billion. These impairments were triggered by the war in Ukraine and the related political consequences and concerned, in addition to the Nord Stream 2 loan, assets in Russia and in the gas transportation business.

Improved operating cash flow in first quarter 2022

Cash flows from operating activities amounted to minus ˆ290 million, an improvement of ˆ235 million compared with the first quarter of 2021. This increase — despite higher cash tied up in net working capital as a result of higher input costs and the sharp rise in sales — was mainly attributable to the improved operating performance. Free cash flow improved by ˆ88 million to minus ˆ893 million.

Proposed dividend of ˆ3.40 per share

The Board of Executive Directors and the Supervisory Board of BASF SE are proposing a dividend of ˆ3.40 per share for the 2021 business year to the Annual Shareholders’ Meeting taking place today. Assuming a corresponding resolution is adopted by shareholders, BASF will pay out a total of around ˆ3.1 billion on May 4, 2022. «This payment is more than covered by our strong free cash flow of ˆ3.7 billion generated in 2021,» said Brudermüller. The ex-dividend date, the day on which the BASF share will trade without the amount of the dividend reflected in the share price, is May 2, 2022.

BASF Group outlook for 2022

The global macroeconomic outlook is currently subject to very high uncertainty. In particular, it is impossible to predict the further development of the war in Ukraine and its impact on the prices and availability of energy and raw materials.

Consequently, BASF is currently maintaining its macroeconomic assumptions for the 2022 business year:

Growth in gross domestic product: 3.8 percent

Growth in industrial production: 3.8 percent

Growth in chemical production: 3.5 percent

Average euro/dollar exchange rate of $1.15 per euro

Average annual oil price (Brent crude) of $75 per barrel

BASF Group’s sales and earnings forecast for the 2022 business year, as published in the BASF Report 2021, is being maintained:

Sales of between ˆ74 billion and ˆ77 billion

EBIT before special items of between ˆ6.6 billion and ˆ7.2 billion

Return on capital employed (ROCE) of between 11.4 percent and 12.6 percent

CO2 emissions of between 19.6 million metric tons and 20.6 million metric tons

The market environment continues to be dominated by an exceptionally high level of uncertainty. Risks may arise from further increases in raw materials prices and new sanctions against Russia, such as a natural gas embargo, or restricted gas supplies from Russia as a result of counter-sanctions. Further risks could arise from the future course of the coronavirus pandemic and longer-lasting or new measures to contain the number of infections, especially in China. Opportunities could arise from continued high margins.

Agro Perspectiva

< EU takes steps to suspend all duties on imports from Ukraine All news for
29.04.2022
Vegetable oil and maize prices slightly decrease after recent surge, while rice, meat, dairy and sugar prices slightly increase and global trade prospects dim >

18.03.2024  
23:10 The European Union and Switzerland launch negotiations to deepen bilateral relations
10:05 Commission proposes targeted review of Common Agricultural Policy to support EU farmers
15.03.2024  
23:36 Cargill Power CanolaTM Program Helps Farmers Take Advantage of Growing Bioenergy Market Opportunities for Canadian Canola
23:19 FAO will provide Ukrainian farmers with soybean and sunflower seeds for spring sowing campaign
13.03.2024  
23:27 FAO urges more cooperation in banana sector, significant for some least developed and low-income food-deficit countries and smallholder farmers
16:51 The European Commission sets out key steps for managing climate risks to protect people and prosperity
12.03.2024  
20:25 Coreper and COMENVI approve the provisional agreement on EU Carbon Removal Certification Framework
20:24 INTA MEPs fail EU producers by dismissing potential improvements to Ukraine ATMs
08:10 Soybean meal is expected to be a more competitive feed ingredient on higher global supplies.
11.03.2024  
09:11 U.S. Corn Exports Shift Destinations as Brazil Captures China Market
08.03.2024  
15:20 Conflicts push acute food insecurity higher
13:21 FAO Food Price Index declines further in February
13:14 Packaging: Council and Parliament strike a deal to make packaging more sustainable and reduce packaging waste in the EU
11:45 Commission approves ˆ61.3 million Bulgarian State aid scheme to support farmers, producers of grain and oil crops, in the context of Russia's war against Ukraine
07.03.2024  
20:41 First go-ahead to renewing trade support for Ukraine and Moldova
05.03.2024  
15:55 Commission proposes to prolong road transport agreements with Ukraine and Moldova and introduces updates to the agreement with Ukraine
02.03.2024  
07:31 Heroes of deserts and highlands: Nourishing people and culture
23.02.2024  
10:21 BASF’s financial strength supports proposed stable dividend of ˆ3.40 per share for the 2023 business year
10:17 The Council has chosen to ignore farmers' concerns regarding Ukraine ATMs; it is now imperative for the European Parliament to take action
20.02.2024  
20:27 South Asia is anticipated to import nearly 14 million tons wheat in 2023/24
19.02.2024  
13:00 Cargill and ENOUGH expand partnership to provide consumers with innovative, sustainable protein options
17.02.2024  
17:47 Global Environment Facility approves new FAO-led projects and programs benefiting 46 countries
16.02.2024  
09:10 The EU is at a crossroads with the Ukrainian agricultural issue - COPA-COGECA, AVES, CEFS, CEPM, CIBE, EUWEP
13.02.2024  
17:31 European farmers exempted from rules on land lying fallow
12.02.2024  
16:45 India Wheat Stocks Plummet to Lowest in 15 Years
03.02.2024  
17:35 Mandarins. Global production for 2023/24 is forecast to rise to 38.0 million tons
09:59 Record cereal output in 2023
07:15 FAO Food Price Index down again in January led by lower wheat and maize prices
29.01.2024  
10:32 President von der Leyen launches Strategic Dialogue on the Future of EU Agriculture
26.01.2024  
11:31 Record Exports Forecast for Egypt Oranges
23.01.2024  
17:55 With the Federal Chancellor in the show bakery
19.01.2024  
11:45 Organic production in Ukraine
16.01.2024  
23:25 Domestic consumption of dairy products may double in 2024 – analysts
12.01.2024  
23:53 Competition Tightens for Leading Pork Exporter
22:55 Peru Fish Meal Exports at Lowest Level Since 2015/16 El Niño
22:43 Grains Trade Disrupted by Challenges in Key Shipping Routes
10.01.2024  
15:38 In China, the largest import market for dairy products, surplus raw milk production led to government subsidies to stabilize the domestic processing sector
09.01.2024  
11:55 The FAO Sugar Price Index averaged 134.6 points in December, down 26.8 points from November
06.01.2024  
12:43 Polish fish and seafood imports continued to grow in 2022 and reached over $3 billion, with a $129 million (4 percent market share) originating from the USA
05.01.2024  
17:21 EU imports are dominated by unroasted green coffee beans, which accounts for about 90 percent of trade
17:00 FAO Food Price Index declines in December. Benchmark measure of world food commodity prices ends 2023 about 10 percent below its year-earlier level
29.12.2023  
09:53 Global and Bank of Georgia sign EUR50 million loan agreement to support small businesses
28.12.2023  
16:47 EIB delivers EUR3 million for energy-efficient upgrades in three Ukrainian cities
27.12.2023  
23:11 EU agri-food trade surplus increases in September 2023
26.12.2023  
15:05 FAO and EU launch a second grant call to bolster the recovery of Ukrainian farmers
18.12.2023  
09:00 EIB Global offers support to Ukraine, Moldova and Georgia on the next step of their EU accession paths
11.12.2023  
13:21 FAO Food Price Index holds steady in November
09.12.2023  
22:15 Donau Soja: Republic of Moldova increases soya harvest in 2023 and boosts market opportunities in the EU
24.11.2023  
12:25 SUGAR MARKET BY SESVANDERHAVE
09:32 BASF signs CNY 40 billion syndicated bank term loan facility with maturity of 15 years for its Verbund site in Zhanjiang, China

Also available: 


NewsNews - News - News - News - News - News
BriefWeekly Reports - Free article
SubscriptionTariff - News&Reports
AdvertisingMagazine - Site
ConferencesForum AGRO-2013 - DAIRY WORLD-2008 - FERTILIZERS-2010
Statistics
For our clientsAgroNewsDaily - Ukrainian Grain&Oilseed Market - Fertilizers - Milk Monthly - Milk Weekly
About usAbout project - Contact
2002 -2024 © Agrarika, ltd.
tel.: +380 67 4473802; +380 67 5964652
e-mail: client@agroperspectiva.com