Norway
Factbook

Factors influencing sales and sensitivities

Factors influencing sales of the BASF Group

  2008 2009 2010 2011 20121 20132 2014 2015 2016 2017
Volumes 0% (10%) 11% 0% 1% 5% 4% 3% 2% 4%
Prices 12% (14%) 8% 12% 1% 0% (3%) (9%) (4%) 8%
Currencies (4%) 1% 5% (2%) 3% (3%) (1%) 6% (1%) (1%)
Acquisitions/divestitures 0% 4% 2% 5% (1%) 1% 0% (5%) (15%) 1%
Total 8% (19%) 26% 15% 4% 3% 0% (5%) (18%) 12%

1 We have applied International Financial Reporting Standards 10 and 11 as well as International Accounting Standard 19 (revised) since January 1, 2013. Figures for 2012 have been restated; no restatement was made for 2011 and earlier.
2 Figures for 2013 have been adjusted to reflect the dissolution of the natural gas trading business disposal group.

Factors influencing sales

Sales rose by €6,925 million to €64,475 million in 2017. This was mainly attributable to significantly higher sales prices in the chemicals business, especially in the Chemicals segment, as well as volumes growth in all segments. The Chemetall business, which was acquired from Albemarle in December 2016, also had a positive impact. Sales were reduced by slightly negative currency effects in all segments.


Sensitivities

Currency impact on BASF Group

Our competitiveness on global markets is influenced by fluctuations in exchange rates. For BASF’s sales, opportunities and risks arise in particular when the U.S. dollar exchange rate fluctuates. A full-year rise in the value of the U.S. dollar/ euro exchange rate by $0.01 would result in an increase of around €50 million in the BASF Group’s EBIT, assuming other conditions remain the same. On the production side, we counter exchange rate risks by producing in the respective currency zones.

Annual impact of US$/€ exchange rate change on BASF Group

(exchange rate: –$0.01 per €)

 

million €

Sales

+ 200

EBIT

+ 50

Financial currency risks result from the translation of receivables, liabilities and other monetary items in accordance with IAS 21 at the closing rate into the functional currency of the respective Group company. In addition, we incorporate planned purchase and sales transactions in foreign currencies in our financial foreign currency risk management. These risks are hedged using derivative instruments, if necessary.

Oil price impact on the Oil & Gas segment

The year’s average oil price for Brent crude was around $54 per barrel in 2017, compared with $44 per barrel in the previous year. For 2018, we anticipate an average oil price of $65 per barrel. We therefore expect a slight increase in price levels for the raw materials and petrochemical basic products that are important to our business. Yet an oil price level below the expected average would pose risks for our oil and gas business, whose EBIT declines by approximately €20 million for every $1 decrease in the average annual barrel price of Brent crude.

Annual impact of oil price change on Oil & Gas segment

($1 per barrel rise in annual average oil price for Brent crude)

 

million €

Sales

+ 25

EBIT

+ 20

Last Update 15 June 2018