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
Electrically heated steam cracker furnace
We have signed an agreement with SABIC and Linde to develop and pilot electrically heated steam cracker furnaces. Together, we developed concepts to replace the fossil fuels used in the heating process with renewable energy. We want to make a significant contribution to reducing carbon emissions in the chemical industry with this innovative and promising solution. If energy from renewable sources is used, the new technology has the potential to almost completely avoid CO2 emissions.
Discover our carbon management at basf.com/carbon-management
Factors influencing sales
EBIT before special items
1 BASF’s ethylene value chain was reorganized 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 €28 million in the first quarter of 2021 and increased these indicators in the Petrochemicals division accordingly (rounding differences are possible). The effect was €28 million in both the second and third quarters of 2021 and €34 million in the fourth quarter of 2021. The effect in full-year 2021 was €118 million. 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. For more information, see basf.com/q12022
| Million € | 20211 | 2020 | 2019 |
| Sales to third parties | 13,579 |
8,071 | 9,532 |
| Share of total BASF sales (%) | 17 |
14 | 16 |
of which Petrochemicals |
9,674 |
5,426 | 6,670 |
Intermediates |
3,904 |
2,645 | 2,862 |
| Income from operations before depreciation and amortization (EBITDA) before special items | 3,842 |
1,305 |
1,574 |
| Income from operations before depreciation and amortization (EBITDA) | 3,882 |
1,237 |
1,545 |
| EBITDA margin (%) | 28.6 |
15.3 |
16.2 |
| Income from operations (EBIT) before special items | 3,092 |
445 |
791 |
| EBIT before special items margin (%) | 22.8 |
5.5 |
8.3 |
| Income from operations (EBIT) | 3,115 |
–192 |
622 |
| EBIT margin (%) | 22.9 |
–2.4 |
6.5 |
| Return on capital employed (ROCE) (%) | 33.9 |
–2.2 |
6.8 |
1 BASF’s ethylene value chain was reorganized 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 €28 million in the first quarter of 2021 and increased these indicators in the Petrochemicals division accordingly (rounding differences are possible). The effect was €28 million in both the second and third quarters of 2021 and €34 million in the fourth quarter of 2021. The effect in full-year 2021 was €118 million. 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. For more information, see basf.com/q12022