BASF Group has reported its 2022 financial results. BASF increased sales by 11.1% to €87.3 billion. Sales growth was reportedly driven by higher prices across almost all segments due to an increase in raw materials and energy prices. The materials and chemicals segments implemented the highest price increases. Significantly lower volumes overall dampened sales growth for the BASF Group. Volume development was primarily driven by lower sales volumes in the surface technologies and chemicals segments.

At €6.9 billion, income from operations (EBIT) before special items was 11.5% below the company’s prior-year figure, but within the forecasted range. The earnings development was attributable to a strong decline in earnings contributions from the chemicals and materials segments. Both segments recorded lower margins and volumes as well as higher fixed costs.

The surface technologies segment recorded considerably higher earnings, especially due to increased earnings contributions from the automotive catalysts and battery materials businesses. Higher prices and volumes in the coatings division additionally supported the segment’s earnings performance. The industrial solutions segment slightly increased EBIT before special items as a result of price-driven margin growth.

In 2022, BASF Group’s operational earnings were burdened by additional energy costs of €3.2 billion globally. Europe accounted for around 84% of this increase, which mostly impacted the Verbund site in Ludwigshafen. Higher natural gas costs accounted for 69% of the overall increase in energy costs globally. As a result of the significantly lower net income from shareholdings, net income for the BASF Group was minus €627 million compared with €5.5 billion in 2021.

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