Business Review
At a glance
- Decline in sales mainly due to lower prices and volumes
- Significantly lower EBIT before special items in both operating divisions
In the Chemicals segment, sales to third parties amounted to €10,369 million in the 2023 business year; this corresponds to a decrease of €4,526 million compared with the prior-year figure. In the Petrochemicals division sales declined by €3,127 million to €7,418 million, while sales in the Intermediates division decreased by €1,398 million to €2,951 million.
|
Chemicals |
Petrochemicals |
Intermediates |
|---|---|---|---|
Volumes |
–11.9% |
–11.7% |
–12.4% |
Prices |
–17.1% |
–16.9% |
–17.6% |
Currencies |
–1.4% |
–1.1% |
–2.1% |
Portfolio |
– |
– |
– |
Sales |
–30.4% |
–29.7% |
–32.2% |
Sales performance was mainly driven by considerably lower prices and volumes in both divisions as a result of weak demand coupled with high product availability and lower raw materials prices. As a result, prices in the Petrochemicals division fell significantly in all business areas. In the Intermediates division, increased capacities of Chinese competitors led to additional price pressure, which meant that price levels declined in the butanediol and derivatives business in particular.
Weak demand weighed down the segment’s volume development significantly. Compared with the previous year, volumes in the Petrochemicals division decreased, particularly for steam cracker products, styrene monomers and in the propylene value chain. In the Intermediates division, volumes decreased considerably in all business areas.
Currency effects, largely relating to the Chinese renminbi and the U.S. dollar, also had a negative impact on sales.
|
|
2023 |
2022 |
+/– |
||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sales to third parties |
|
10,369 |
14,895 |
–30.4% |
||||||||||
of which Petrochemicals |
|
7,418 |
10,546 |
–29.7% |
||||||||||
Intermediates |
|
2,951 |
4,349 |
–32.2% |
||||||||||
Intersegment transfers |
|
3,606 |
4,860 |
–25.8% |
||||||||||
Sales including transfers |
|
13,975 |
19,754 |
–29.3% |
||||||||||
Income from operations before depreciation, amortization and special items |
|
1,167 |
2,774 |
–57.9% |
||||||||||
Income from operations before depreciation and amortization (EBITDA) |
|
1,167 |
2,771 |
–57.9% |
||||||||||
EBITDA margin before special items |
% |
11.3 |
18.6 |
– |
||||||||||
Depreciation and amortizationa |
|
803 |
1,013 |
–20.8% |
||||||||||
Income from operations (EBIT) |
|
364 |
1,758 |
–79.3% |
||||||||||
Special items |
|
4 |
–198 |
. |
||||||||||
EBIT before special items |
|
361 |
1,956 |
–81.6% |
||||||||||
Investments including acquisitionsb |
|
2,706 |
1,701 |
59.1% |
||||||||||
Segment cash flow |
|
–936 |
1,878 |
. |
||||||||||
Assets |
|
11,468 |
10,481 |
9.4% |
||||||||||
Return on capital employed (ROCE) |
% |
3.3 |
15.6 |
– |
||||||||||
Research and development expenses |
|
83 |
93 |
–10.4% |
||||||||||
|
||||||||||||||
Chemicals – sales
By division
Income from operations (EBIT) before special items of the segment was €361 million, €1,596 million below the figure of the very strong previous year. The decline in EBIT before special items in both operating divisions was primarily attributable to the lower margins and volumes, and lower contributions from shareholdings accounted for using the equity method. Reduced fixed costs and lower raw materials and energy prices had an offsetting effect in both divisions.
At €364 million, EBIT decreased by €1,394 million compared to 2022.
Divisions |
Europe |
North America |
Asia Pacific |
South America, Africa, Middle East |
Total (million €) |
|---|---|---|---|---|---|
Petrochemicals |
54.6% |
30.0% |
10.5% |
5.0% |
7,418 |
Intermediates |
41.2% |
18.4% |
36.6% |
3.7% |
2,951 |