Sales for the BASF Group rose slightly in the first half of 2015, favorably influenced by currency effects and by increased volumes in the Oil & Gas segment. Lower prices resulting from the sharp drop in the price of oil put a strain on sales development. Income from operations before special items matched the level of the first half of 2014, supported in particular by the substantially higher contribution from the Functional Materials & Solutions segment.
Sales and income from operations before special items
Sales rise by 3% to €39.1 billion
At around €4.1 billion, earnings match level of same period of 2014
Compared with the first half of 2014, our sales grew by 3% to €39.1 billion despite slightly declining sales volumes in the chemicals business1. This was largely thanks to positive currency effects in all divisions as well as higher volumes in gas trading. Lower prices for crude oil weighed down sales in the Oil & Gas segment as well as in our chemicals business.
At around €4.1 billion, income from operations before special items matched the level of the first half of the previous year. The oil price-related decline in the Oil & Gas segment dampened earnings, while the Functional Materials & Solutions and Chemicals segments provided support through greater contributions. The Agricultural Solutions segment matched the earnings of the previous first half; the Performance Products segment and Other remained below the level of the same period of 2014.
1 Our chemicals business comprises the Chemicals, Performance Products and Functional Materials & Solutions segments.
Factors influencing sales
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Factors influencing sales in 2015 (% of sales)
1st Half
Volumes
3
Prices
(8)
Portfolio
0
Currencies
8
3
We raised our sales volumes year-on-year, boosted by a sharp volumes increase in the Oil & Gas segment’s natural gas trading business. Sales volumes remained stable in the Functional Materials & Solutions segment, while declining slightly in the other segments. Prices decreased overall on account of the lower price of oil, especially in the Chemicals and Oil & Gas segments; they rose in the Agricultural Solutions segment, however. Currency effects were positive in all segments. The disposal of our share in the Ellba Eastern Private Ltd. joint operation in Singapore slightly reduced sales.
Sales and income from operations before special items in the segments
Sales in the Chemicals segment fell considerably below the level of the previous first half. This was mainly due to the price declines resulting from lower raw material costs, especially in the Petrochemicals division. Sales were additionally reduced by the disposal of our share in the Ellba Eastern Private Ltd. joint operation in Singapore at the end of 2014, as well as by slightly lower overall volumes. Currency effects had a positive impact on sales, however. Earnings grew slightly, primarily through the increased contribution from Petrochemicals.
First-half sales (million €, relative change)
First-half sales (bar chart)
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http://report.basf.com/2015/q2/en/business-review/1st-half-2015.html
BASF Group Business Review 2nd Quarter 2015
In the second quarter of 2015, we were able to slightly increase our sales through higher volumes in the Oil & Gas segment as well as through positive currency effects. The sharp drop in oil prices led to significant price declines for basic chemicals and weakened sales growth in the Oil & Gas segment. We were able to considerably raise earnings in the Functional Materials & Solutions segment, while the other segments remained behind the level of the previous second quarter. Earnings grew slightly overall.
Sales and income from operations before special items
Sales grow by 3% to €19.1 billion as a result of higher volumes in Oil & Gas and positive currency effects
Earnings rise by 2% to around €2 billion, driven by contributions from Functional Materials & Solutions segment and Other
Compared with the second quarter of 2014, our sales grew by 3% to €19.1 billion despite overall lower sales prices. This development was supported by higher volumes in gas trading as well as by positive currency effects in all divisions. The drop in prices resulting from the lower price of oil negatively impacted sales, especially in the Chemicals and Oil & Gas segments.
We raised income from operations before special items by €31 million to around €2 billion, largely through the significantly increased contribution from the Functional Materials & Solutions segment as well as the reversal of provisions for the long-term incentive program in Other. While earnings were only slightly down in the Chemicals segment, the other segments posted considerable declines.
Factors influencing sales
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Factors influencing sales in 2015 (% of sales)
2nd Quarter
Volumes
2
Prices
(8)
Portfolio
0
Currencies
9
3
Sales volumes grew slightly compared with the same quarter of the previous year. This was predominantly through a sharp increase in volumes in the Oil & Gas segment’s Natural Gas Trading business sector. Sales volumes remained stable in the chemicals business1 but decreased in the Agricultural Solutions segment. As a consequence of the significant drop in the price of oil, prices declined overall, especially in the Chemicals and Oil & Gas segments. We observed positive currency effects in all segments. Portfolio measures had no material impact on sales development.
1 Our chemicals business comprises the Chemicals, Performance Products and Functional Materials & Solutions segments.
Sales and income from operations before special items in the segments
Sales in the Chemicals segment were considerably down compared with the second quarter of 2014. Lower raw material costs led to a sharp drop in prices, especially in the Petrochemicals division. Further dampening sales was the disposal of our share in the Ellba Eastern Private Ltd. joint operation in Singapore at the end of 2014. Positive currency effects in all divisions and higher sales volumes in the Intermediates division worked in our favor. Earnings declined slightly, primarily as a result of higher fixed costs arising from the gradual startup of new production facilities and a greater number of scheduled plant shutdowns.
Second-quarter sales (million €, relative change)
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http://report.basf.com/2015/q2/en/business-review/2nd-quarter-2015.html
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Basf EUR 80,24 -2,46 vol. 522.000 |
