MOSCOW (MRC) -- In the first quarter of 2016, BASF Group sales decreased by 29% to EUR14.2 billion compared with the same quarter of the previous year, said the producer in its report.
This was largely on account of the divestiture of the gas trading and storage business, which had contributed EUR4.2 billion to sales in the first quarter of 2015.
The lower price of oil led to declining sales prices, especially in the Chemicals segment. Overall sales volumes matched the level of the previous first quarter. Volumes increased slightly in the Functional Materials & Solutions, Oil & Gas and Performance Products segments, whereas they decreased slightly in the Agricultural Solutions and Chemicals segments.
"We were able to slightly increase EBIT before special items in the Performance Products, Functional Materials & Solutions and Agricultural Solutions segments," 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, Germany. The significantly smaller contributions from the Oil & Gas and Chemicals segments reduced income from operations (EBIT) before special items by EUR164 million to EUR1.9 billion. A considerable earnings improvement in Other was especially the result of valuation effects for the long-term incentive program.
Compared with the previous first quarter, EBIT declined by EUR129 million to EUR1.9 billion. EBITDA fell by EUR78 million to EUR2.8 billion. At minus EUR188 million, the financial result was below the level of the first quarter of 2015 (minus EUR164 million).
Income before taxes and minority interests fell by EUR153 million to EUR1.7 billion. The tax rate was 15.4% (first quarter of 2015: 29.7%). The decline was mainly attributable to taxes in the Oil & Gas segment.
Net income rose by EUR213 million to EUR1.4 billion. Earnings per share were EUR1.51 in the first quarter of 2016, compared with EUR1.28 in the same period of 2015. Adjusted for special items and amortization of intangible assets, earnings per share amounted to EUR1.64 (first quarter of 2015: EUR1.43).
As MRC wrote before, in September 2015, BASF began its first production of diphenylmethane diisocyanate (MDI) at its wholly-owned site in Chongqing, China. Production will be ramped up gradually in line with market demand.
BASF is the largest diversified chemical company in the world and is headquartered in Ludwigshafen, Germany. BASF produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries.
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