• Login
    • Join
  • FOLLOW:
  • Subscribe Free
    • Magazine
    • eNewsletter
    Checkout
    • Magazine
    • News
    • Research
    • Markets & Technologies
    • Raw Materials
    • Top Companies
    • Directories
    • Jobs
    • Events
    • Microsites
    • More
  • Magazine
  • News
  • Research
  • Markets & Technologies
  • Raw Materials
  • Top Companies
  • Directories
  • Jobs
  • Events
  • Microsites
  • Current / Back Issues
    Features
    Business Corner
    Editorial
    Digital Edition
    eNewsletter Archive
    Our Team
    Editorial Guidelines
    Subscribe Now
    Advertise Now
    World Reports
    eBook
    Top Features
    CPMA Celebrates 100 Years of Leadership for the Color Pigments Industry

    Aerospace Coatings Market

    Energy Curing and Coil Coatings

    Lab/Testing Equipment Update

    High Performance and Special Effect Pigments
    Breaking News
    Online Exclusives
    Distributor News
    Financial News
    Paint & Coatings Manufacturer News
    People In the News
    Price Increases
    Product News
    Raw Materials & Equipment
    Video Bites
    Suppliers News
    Live From Shows
    Top News
    Tnemec Launches New Waterborne Epoxy Products

    BASF Celebrates 10 Years of TECH Academy

    ChemQuest Expands Business Development Team with New VP

    AkzoNobel Wins Airbus Award for Supply Chain Quality and Improvement

    MFG Chemical Hires Two Paints and Coatings BDMs
    Top Companies report
    Market Research
    White Papers / Tech Papers
    Technical Papers
    Product Spec Sheets
    World Reports
    Adhesives and Sealants
    Aerospace Coatings
    Architectural Coatings
    Automotive Coatings
    Automotive Refinish
    Business Operation
    Color Trends & Forecast
    Construction Chemicals
    Corrosion Control
    Industrial Coatings
    Laboratory Equipment
    Marine Coatings
    Market Trends & Forecast
    Powder Coatings
    Production Equipment
    Radcure Coatings
    Special Purpose Coatings
    Wood Coatings
    "Green" Coatings

    Tnemec Launches New Waterborne Epoxy Products

    Disney, Pittsburgh Paints Relationship Survives Mayhem of Stitch

    AkzoNobel Wins Airbus Award for Supply Chain Quality and Improvement

    Sherwin-Williams Selects Radiant Lilac as Its 2025 ‘Loneliest Color’

    PCI’s Powder Coating Week 2026 Set for March 2-4 in Indianapolis
    Additives
    Binders
    Pigments
    Solvents

    CPMA Celebrates 100 Years of Leadership for the Color Pigments Industry

    Orion S.A. Earns 10 Safety Awards from ICBA

    OXERRA Expands Augusta Facility to Enhance U.S. Distribution Capabilities

    Münzing Expands U.S. Operations with New Production Facility in South Carolina

    Aditya Birla Acquires Cargill Specialty Chemical Facility in Georgia
    Company Capabilities
    Buyers Guide
    Distributor Guide
    Add New Company
    International Buyers Guide Companies
    Siltech Corporation

    Shepherd Color Company, The

    Vibrantz Technologies

    Gehring Montgomery Inc

    WAB US Corp
    Industry Events
    Webinars
    Live From Show Event
    Top Events
    Coatings Expo Vietnam 2025

    West Africa Coatings Show

    ABRAFATI SHOW 2025

    Paint Bangladesh 2025

    Paint Expo Eurasia
    Companies
    White Papers/Tech Papers
    Product Spec Sheets
    Equipment
    Literature/Brochures
    Videos
    International Buyers Guide Companies
    Siltech Corporation

    Shepherd Color Company, The

    Vibrantz Technologies

    Gehring Montgomery Inc

    WAB US Corp
    • Magazine
      • Current / Back Issues
      • Features
      • Editorial
      • Business Corner
      • Digital Edition
      • eNewsletter Archive
      • Editorial Guidelines
      • Subscribe Now
      • Advertise Now
    • Breaking News
    • Directories
      • Buyers Guide
      • Distributor Guide
      • Corporate Capabilities
      • Trade Associations
      • Add Your Company
    • Markets & Technologies
      • Adhesives and Sealants
      • Aerospace Coatings
      • Architectural Coatings
      • Automotive Coatings
      • Automotive Refinish
      • Business Operation
      • Color Trends & Forecast
      • Construction Chemicals
      • Corrosion Control
      • Industrial Coatings
      • Laboratory Equipment
      • Marine Coatings
      • Market Trends & Forecast
      • Powder Coatings
      • Production Equipment
      • Radcure Coatings
      • Special Purpose Coatings
      • Wood Coatings
      • "Green" Coatings
    • Raw Materials
      • Additives
      • Binders
      • Pigments
      • Solvents
    • World Reports
      • Africa Report
      • China Report
      • India/Asia Pacific Report
      • Europe Report
      • Latin America Report
      • Market Research
      • Russian Report
    • Top Companies
    • Online Exclusives
    • Glossary
    • Slideshows
    • Experts Opinions
    • Blog
    • eBook
    • Infographics
    • Videos
    • Podcasts
    • Whitepapers
    • Jobs
    • Microsites
      • Companies
      • White Papers/Tech Papers
      • Product Spec Sheets
      • Equipment
      • Literature/Brochures
      • Videos
    • Events
      • Industry Events
      • Live From Show Event
      • Webinars
    • About Us
      • About Us
      • Contact Us
      • Advertise With Us
      • Privacy Policy
      • Terms of Use
    Breaking News

    BASF: Good Start to the Year in Chemicals Business, Oil and Gas Business Considerably Down

    ...

    05.01.14
    “We had a good start to the year in our chemicals business and in the Agricultural Solutions segment. We sold more. This more than compensated for the negative effects on sales from the comparatively weak U.S. dollar and currencies in emerging markets,” said Dr. Kurt Bock, Chairman of the Board of Executive Directors, at the Annual Shareholders’ Meeting of BASF SE in the Congress Center Rosengarten in Mannheim. Sales declined considerably in the Oil & Gas segment, however. At €19.5 billion, BASF Group sales were down by 1% overall.



    Income from operations (EBIT) before special items amounted to €2.1 billion, 3% below the level of the first quarter of 2013. While earnings in the Performance Products and Functional Materials & Solutions segments improved significantly, the contribution from the Oil & Gas segment fell considerably.


    EBIT included a total of €109 million in special items in the first quarter of 2014. This was largely attributable to special income from the divestiture of shares in non-BASF-operated oil and gas fields in the British North Sea. EBIT therefore grew year-on-year by €80 million to reach €2.2 billion. EBITDA rose by €96 million to €3.0 billion. The financial result decreased by €57 million to minus €183 million.



    Income before taxes and minority interests improved year-on-year by €23 million to €2.1 billion. Net income grew by €31 million to €1.5 billion. Earnings per share were €1.61 in the first quarter of 2014, compared with €1.57 in the same period of 2013.



    Outlook for 2014 confirmed

    The company’s expectations for the global economic environment in 2014 remain unchanged:

        Growth of gross domestic product: 2.8%
        Growth in industrial production: 3.7%
        Growth in chemical production: 4.4%
        An average euro/dollar exchange rate of $1.30 per euro
        An average oil price for the year of $110 per barrel

    Bock: “For 2014, we anticipate somewhat faster growth in the global economy than in 2013. We expect to perform well in a market environment that remains volatile and challenging. We therefore stand by our outlook for 2014 despite unfavorable currency developments. We expect a slight rise in EBIT before special items, especially as a result of considerably higher contributions from the Performance Products and Functional Materials & Solutions segments.” Sales are likely to decrease slightly due to the divestiture of the gas trading and storage business planned for the middle of 2014. EBIT will likely considerably increase. The special income arising from the planned divestiture of the gas trading and storage business should make a significant contribution here.


    World-scale investment in the United States being evaluated

    BASF is evaluating an investment in a world-scale methane-to-propylene complex on the U.S. Gulf Coast. “The production of propylene would allow us to take advantage of low gas prices due to shale gas production, considerably improve our cost position and improve our backward integration in the United States,” said Bock. This would be BASF’s largest single-plant investment to date. Propylene is one of the most important basic chemicals in the petrochemical industry and is used in the production of a wide range of higher-value chemicals. Details on the potential investment are currently under evaluation.



    Business development in the segments in the first quarter

    In the Chemicals segment, sales matched the level of the previous first quarter. Lower prices and negative currency effects were offset by increased volumes. Sales volumes grew, particularly as a result of stronger demand in the Intermediates division as well as higher volumes in the Petrochemicals division, especially in North America. Earnings decreased slightly, mainly due to margin pressure.



    Sales in the Performance Products segment were at the level of the previous first quarter despite negative currency effects and slightly lower sales prices. This was attributable to higher sales volumes. Strict fixed cost management contributed to a considerable rise in earnings.



    In the Functional Materials & Solutions segment, sales were slightly higher on account of increased volumes, thanks primarily to strong demand from the automotive industry. Negative currency effects reduced sales growth. In the Construction Chemicals division, sales declined slightly as a result of portfolio effects, as well. Earnings considerably surpassed the level of the first quarter of 2013. All divisions contributed to this.



    Sales grew considerably in the Agricultural Solutions segment. This was mainly because of the strong start in the Northern Hemisphere. Negative currency effects were more than compensated for by raising volumes and prices. Earnings rose slightly thanks to these higher volumes and prices.



    Sales in the Oil & Gas segment were considerably below the level of the previous first quarter. In the Natural Gas Trading business sector, sales volumes were significantly down year-on-year as a result of the mild winter in Europe. Despite lower prices for crude oil and missing volumes from offshore production in Libya, sales levels remained stable in the Exploration & Production business sector. This was largely due to additional volumes from Norway. Margin pressure and lower volumes in natural gas trading as well as the smaller contribution from Libya led to a considerable earnings decline in the segment.



    Sales in Other rose slightly compared with the first quarter of 2013. This was mainly the result of higher volumes in raw materials trading. EBIT before special items declined considerably, however. Currency losses and valuation effects for the long-term incentive program played a significant role here. Whereas provisions had been reversed in the first quarter of 2013, the positive development of the BASF share led to expenses for increasing provisions in the first quarter of 2014.



    Business development in the regions in the first quarter

    Sales at companies located in Europe decreased year-on-year by 3%. The considerably lower level of sales in the Oil & Gas segment was responsible for this. In the Natural Gas Trading business sector, above-average temperatures in the winter months led to a mostly volumes and price-related decline in sales. On the other hand, weather conditions were favorable for the business with crop protection products; sales rose considerably in the Agricultural Solutions segment. EBIT before special items fell by €19 million to €1.5 billion due to the considerably lower contribution from the Oil & Gas segment.


    In North America, sales grew as a result of significantly higher volumes, rising by 9% in U.S. dollars and by 5% in euro terms. Sales volumes in the Petrochemicals and Catalysts divisions increased especially sharply. Besides currency effects, lower prices also reduced sales growth in the region. At €491 million, earnings surpassed the level of the first quarter of 2013 by €37 million thanks primarily to higher contributions from the Petrochemicals division and the Agricultural Solutions segment.



    Sales in the Asia Pacific region rose by 7% in local-currency terms and by 1% in euro terms. Sales volumes increased in all segments. Negative currency effects and declining prices weakened sales growth. At €174 million, earnings were €71 million below the same quarter of 2013. This was largely on account of a considerably smaller contribution from the Chemicals segment as well as currency losses reported in Other. By contrast, the Functional Materials & Solutions segment was able to considerably improve earnings.



    Sales in the South America, Africa, Middle East region grew by 10% in local-currency terms but declined by 10% in euro terms. Higher prices and improved sales volumes were only able to partly offset highly negative currency effects. Sales decreased considerably in the Agricultural Solutions segment. Here, negative currency effects as well as declining volumes and sales prices put a strain on sales development. Despite a considerably higher contribution from the Oil & Gas segment in Argentina, earnings for the region amounted to €17 million, down by €21 million compared with the level of the previous first quarter. This was due to the currency losses reported in Other.
    Related Searches
    • Construction Chemicals
    Related Knowledge Center
    • Construction Chemicals
      Loading, Please Wait..
      Breaking News
      • Tnemec Launches New Waterborne Epoxy Products
      • BASF Celebrates 10 Years of TECH Academy
      • ChemQuest Expands Business Development Team with New VP
      • AkzoNobel Wins Airbus Award for Supply Chain Quality and Improvement
      • MFG Chemical Hires Two Paints and Coatings BDMs
      View Breaking News >
      CURRENT ISSUE

      May/June 2025

      • Aerospace Coatings Market
      • Energy Curing and Coil Coatings
      • Lab/Testing Equipment Update
      • High Performance and Special Effect Pigments
      • View More >

      Cookies help us to provide you with an excellent service. By using our website, you declare yourself in agreement with our use of cookies.
      You can obtain detailed information about the use of cookies on our website by clicking on "More information”.

      • About Us
      • Privacy Policy
      • Terms And Conditions
      • Contact Us

      follow us

      Subscribe

      Latest Breaking News From Nutraceuticals World

      Gattefossé Opens New Facilities in Mumbai, India
      TSI Group Unveils myHMB + Vitamin D Logo
      Indena to Showcase Metabolic, Brain Health Solutions at In-Vitality 2024

      Latest Breaking News From Coatings World

      BASF Celebrates 10 Years of TECH Academy
      ChemQuest Expands Business Development Team with New VP
      AkzoNobel Wins Airbus Award for Supply Chain Quality and Improvement

      Latest Breaking News From Medical Product Outsourcing

      StimLabs's Umbilical Cord-Derived Wound Care Product Released in U.S.
      New Medical-Grade Bio-Based PVC Compounds Introduced
      Croívalve Reports 1st Tricuspid Coaptation Valve Implant in U.S. Feasibility Study

      Latest Breaking News From Contract Pharma

      Neurocrine Bioscience’s CRENESSITY Becomes Commercially Available in the U.S.
      Roche's Parkinson's Disease Drug Misses Primary Endpoint
      PTC Therapeutics Submits Vantiquinone NDA to FDA

      Latest Breaking News From Beauty Packaging

      Weekly Recap: Coty Sells SKKN, Henkel Recall, Awards, & More
      Rare Beauty to Host Pop-Up Event with Sephora UK
      Cloud Haircare Expands to Walmart Stores Nationwide

      Latest Breaking News From Happi

      Cosmetify Names Nikkie de Jager the World’s Most Powerful Beauty Influencer
      Big Lips in the Small Wonder
      L’Oréal’s Bioprinted Skin & Dove’s Deodorant Launch

      Latest Breaking News From Ink World

      BCF Sponsors Parliamentary Event to Engage with Policymakers
      Weekly Recap: DIC Corporation, BASF, Toyo Printing Inks Top This Week’s Stories
      INX International Launches Innova Plus NCF Nitrocellulose-Free Inks

      Latest Breaking News From Label & Narrow Web

      Mexico's Flexopolis adds second Bobst flexo press
      Paramount Labels installs Rotatek Brava 450
      Esko teams with Bobst for smartGRAVURE System

      Latest Breaking News From Nonwovens Industry

      Nonwovenn Invests in MediTech Business
      Rockline Announces Leadersip Transition
      Corotec Promotes Tom Ignatowski

      Latest Breaking News From Orthopedic Design & Technology

      David Thordarson Takes Charge of American Orthopaedic Foot & Ankle Society
      UPM Biomedicals Launches FibGel Injectable Nanocellulose Hydrogel for Medical Devices
      ONWARD Medical Attracts €50 Million in Capital

      Latest Breaking News From Printed Electronics Now

      Weekly Recap: DuPont, SEMI, Sun Chemical Top This Week’s Stories
      ORNL’s 3D-Printed Metal Molds Poised to Accelerate US Auto Manufacturing
      SRI, NSIC are Catalyzing Corporate Innovation in Japan

      Copyright © 2025 Rodman Media. All rights reserved. Use of this constitutes acceptance of our privacy policy The material on this site may not be reproduced, distributed, transmitted, or otherwise used, except with the prior written permission of Rodman Media.

      AD BLOCKER DETECTED

      Our website is made possible by displaying online advertisements to our visitors.
      Please consider supporting us by disabling your ad blocker.


      FREE SUBSCRIPTION Already a subscriber? Login