Financial Position
|
December 31, 2023 |
December 31, 2022 |
||
|---|---|---|---|---|
|
Million € |
% |
Million € |
% |
Subscribed capital |
1,142 |
1.5 |
1,144 |
1.4 |
Capital reserves |
3,139 |
4.1 |
3,147 |
3.7 |
Retained earnings |
32,517 |
42.0 |
35,453 |
42.1 |
Other comprehensive income |
–1,521 |
–2.0 |
–171 |
–0.2 |
Noncontrolling interests |
1,368 |
1.8 |
1,350 |
1.6 |
Equity |
36,646 |
47.3 |
40,923 |
48.4 |
|
|
|
|
|
Provisions for pensions and similar obligations |
2,896 |
3.7 |
2,810 |
3.3 |
Deferred tax liabilities |
1,140 |
1.5 |
1,543 |
1.8 |
Tax provisions |
335 |
0.4 |
330 |
0.4 |
Other provisions |
1,684 |
2.2 |
1,650 |
2.0 |
Financial indebtedness |
17,085 |
22.1 |
15,171 |
18.0 |
Other liabilities |
1,739 |
2.3 |
1,606 |
1.9 |
Noncurrent liabilities |
24,879 |
32.2 |
23,110 |
27.4 |
|
|
|
|
|
Accounts payable, trade |
6,741 |
8.7 |
8,434 |
10.0 |
Provisions |
3,214 |
4.2 |
3,799 |
4.5 |
Tax liabilities |
801 |
1.0 |
995 |
1.2 |
Financial indebtedness |
2,182 |
2.8 |
3,844 |
4.6 |
Other liabilities |
2,931 |
3.8 |
3,368 |
4.0 |
Current liabilities |
15,871 |
20.5 |
20,440 |
24.3 |
Total equity and liabilities |
77,395 |
100.0 |
84,472 |
100.0 |
Equity and liabilities
At a glance
- Equity ratio of 47.3% slightly below prior-year level
- Net debt of €16,590 million almost unchanged
- Cash flows from operating activities above previous year
Equity decreased by €4,277 million compared with the previous year to €36,646 million. Retained earnings were €2,937 million below the figure as of December 31, 2022. This resulted from the dividends paid to the shareholders of BASF SE for 2022, which amounted to €3,035 million, while the net income amounted to €225 million. Other comprehensive income decreased by €1,349 million, in particular as a result of currency effects and actuarial losses.
At 47.3%, the equity ratio was slightly below the prior-year level (48.4%).
Noncurrent liabilities increased by €1,769 million compared with the 2022 year-end. This was mainly attributable to the €1,914 million increase in noncurrent financial indebtedness. The increase primarily resulted from the issue of three eurobonds with a nominal value totaling €1.5 billion and the taking up of loans amounting to around €1.8 billion. The reclassification of a 500 million eurobond and two loans totaling €760 million from noncurrent to current financial indebtedness as well as exchange rates and interest had an offsetting effect.
The €133 million increase in other noncurrent liabilities compared with the prior-year figure largely resulted from higher lease liabilities.
At €2,896 million, provisions for pensions and similar obligations were slightly above the prior year-end figure. The rise in obligations due to lower discount rates in all relevant currency zones was largely offset by the return on plan assets and lower defined benefit assets.
Tax and other provisions were almost on prior-year level.
Current liabilities decreased by €4,569 million to €15,871 million compared with December 31, 2022, largely as a result of the considerable decrease in trade accounts payable by €1,693 million and current financial indebtedness by €1,662 million. The decrease in financial indebtedness was mainly due to the scheduled repayment of a U.S. dollar bond and a eurobond as well as a GBP bond with an aggregate carrying amount of about €2.1 billion. Furthermore, commercial paper at BASF SE were reduced by around €650 million. This was partially offset by the aforementioned reclassifications of a bond and two loans.
Current provisions were €584 million below the prior-year figure, largely as a result of lower provisions for bonus payments. Slightly higher provisions for rebates had an offsetting effect.
Other liabilities declined by €437 million year on year, mainly due to lower advance payments received and lower negative fair values of derivatives.
Tax liabilities decreased by €194 million.
Net debt amounted to €16,590 million on December 31, 2023, and was therefore almost on a level with the prior year-end.
- For more information on the composition and development of individual asset items, see the Notes to the Consolidated Financial Statements
- For more information on the development of the balance sheet, see the Ten-Year Summary
|
December 31, 2023 |
December 31, 2022 |
|---|---|---|
Noncurrent financial indebtedness |
17,085 |
15,171 |
+ Current financial indebtedness |
2,182 |
3,844 |
Financial indebtedness |
19,268 |
19,016 |
– Marketable securities |
53 |
232 |
– Cash and cash equivalents |
2,624 |
2,516 |
Net debt |
16,590 |
16,268 |
Off-balance sheet obligations
Off-balance sheet obligations mainly relate to long-term purchase obligations for raw materials and long-term supply agreements for electricity from renewable sources. In addition, obligations exist in connection with initiated or planned investment projects (2023: €11,064 million), primarily in connection with the construction of the new BASF Verbund site in Zhanjiang, China.