BASF Group’s EBITDA before special items (income from operations before depreciation, amortization and special items) increased in the third quarter by €77 million to €1.6 billion due to significantly higher contributions from the core businesses.

“The positive earnings momentum in our core businesses was already visible in the first half of 2024 and continued in the third quarter, driven by higher volumes and margins,” said Dr. Markus Kamieth, Chairman of the Board of Executive Directors of BASF SE. This increase was partially offset by a considerable earnings decline in the standalone businesses as well as in Other.

Under its new strategy announced in late September 2024, BASF differentiates between its core businesses (Chemicals, Materials, Industrial Solutions and Nutrition & Care) and the standalone businesses that serve distinct industries. The standalone businesses are reported in the Surface Technologies and Agricultural Solutions segments.

At €15.7 billion, sales were on a level with the prior-year period. Volume growth in almost all segments compared with the third quarter of 2023 had a positive impact on sales performance. Volumes increased in the core businesses as well as in Agricultural Solutions. Only the Surface Technologies segment recorded a decline in volumes in the Catalysts division due to weak demand in the automotive market.

Negative currency effects, mainly relating to the Argentine peso and Brazilian real, burdened sales. Lower prices in nearly all segments, particularly for precious and base metals in the Surface Technologies segment, also hindered sales performance.

The EBITDA margin before special items was 10.3 percent, following 9.8 percent in the prior-year quarter. In the core businesses, the EBITDA margin before special items improved by 3.6 percentage points to 13.4 percent in the third quarter of 2024 versus 9.8 percent in the prior-year quarter.

EBITDA amounted to €1.3 billion, following €1.4 billion in the prior-year period.  EBITDA included special items in the amount of minus €345 million. Special charges resulted in particular in the Agricultural Solutions division from provisions in connection with the closure of the production plants for glufosinate-ammonium and the associated site closures that were announced in July 2024.

At €250 million, EBIT was €144 million below the figure of the prior-year quarter. Depreciation and amortization amounted to €1 billion, compared with €969 million in the prior-year period.

Net income was €287 million (prior-year quarter: minus €249 million). This significant increase resulted mainly from higher net income from shareholdings, primarily due to special income of €398 million in connection with the transfer of Wintershall Dea assets to Harbour Energy plc. In the prior-year quarter, special items in the amount of minus €291 million arose at Wintershall Dea.

Cash flows from operating activities amounted to €2.1 billion in the third quarter of 2024, €633 million below the figure of the prior-year period. The €674 million higher reduction in trade accounts payable was the primary reason for this decrease. At the same time, cash released from inventories decreased by €339 million compared with the third quarter of 2023. Free cash flow amounted to €569 million in the third quarter of 2024, compared with €1.5 billion in the prior-year period.

BASF Group’s outlook for 2024 unchanged

BASF’s assumptions for the full year 2024 remain unchanged:

* Growth in gross domestic product: +2.3 percent

* Growth in industrial production: +2.2 percent

* Growth in chemical production: +2.7 percent

* Average euro/dollar exchange rate of $1.10 per euro

* Average annual oil price (Brent crude) of $80 per barrel