Chemicals
The Chemicals segment consists of the Petrochemicals and Intermediates divisions. It 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 expand our competitiveness through technological leadership and operational excellence.
Divisions
Neopentyl glycol ZeroPCF
Since 2022, BASF has offered the versatile intermediate neopentyl glycol (NPG) as a ZeroPCF variant, i.e., with a Product Carbon Footprint (PCF) of net zero.1 We achieve this through a production process that combines our biomass balance approach with the use of renewable energies and the advantages of our Verbund production system. NPG ZeroPCF has the same quality as our conventionally manufactured NPG and therefore serves as a drop-in solution for our customers to achieve their emission and sustainability targets. A key application area for NPG is powder coatings, primarily used in the construction industry and for household appliances. There, they enable a reduction of volatile organic compounds (VOC) by up to 50%. NPG ZeroPCF is currently produced at the Verbund site in Ludwigshafen, Germany, and is available worldwide.
Discover NPG ZeroPCF at basf.com/en/npg
1 Cradle-to-gate calculation (from raw materials extraction to the factory gate)
Factors influencing sales
EBIT before special items1
1 BASF’s ethylene value chain was reorganized internally as of January 1, 2022. In this connection, the polyolefins and styrenics businesses of the joint venture BASF-YPC Company Ltd., Nanjing, China, which were previously reported under Other, were allocated to the Petrochemicals division. The 2021 figures have been adjusted. This reduced income from integral companies accounted for using the equity method, EBITDA before special items, EBITDA, EBIT and EBIT before special items in Other by €118 million in 2021 and increased these indicators in the Petrochemicals division accordingly. The operating assets were also reallocated as part of the reorganization and increased the Chemicals segment’s assets by €114 million as of December 31, 2021.
| Million € | 2022 | 20211 | 2020 | 2019 |
| Sales to third parties | 14,895 | 13,579 | 8,071 | 9,532 |
| Share of total BASF sales (%) | 17 | 17 | 14 | 16 |
of which Petrochemicals |
10,546 | 9,674 | 5,426 | 6,670 |
Intermediates |
4,349 | 3,904 | 2,645 | 2,862 |
| Income from operations before depreciation and amortization (EBITDA) before special items | 2,774 | 3,842 | 1,305 | 1,574 |
| Income from operations before depreciation and amortization (EBITDA) | 2,771 | 3,882 | 1,237 | 1,545 |
| EBITDA margin (%) | 18.6 | 28.6 | 15.3 | 16.2 |
| Income from operations (EBIT) before special items | 1,956 | 3,092 | 445 | 791 |
| EBIT before special items margin (%) | 13.1 | 22.8 | 5.5 | 8.3 |
| Income from operations (EBIT) | 1,758 | 3,115 | –192 | 622 |
| EBIT margin (%) | 11.8 | 22.9 | –2.4 | 6.5 |
| Return on capital employed (ROCE) (%) | 15.6 | 33.9 | –2.2 | 6.8 |
1 BASF’s ethylene value chain was reorganized internally as of January 1, 2022. In this connection, the polyolefins and styrenics businesses of the joint venture BASF-YPC Company Ltd., Nanjing, China, which were previously reported under Other, were allocated to the Petrochemicals division. The 2021 figures have been adjusted. This reduced income from integral companies accounted for using the equity method, EBITDA before special items, EBITDA, EBIT and EBIT before special items in Other by €118 million in 2021 and increased these indicators in the Petrochemicals division accordingly. The operating assets were also reallocated as part of the reorganization and increased the Chemicals segment’s assets by €114 million as of December 31, 2021.