BAKU, Azerbaijan, May 4
By Leman Zeynalova – Trend:
Germany-based BASF company saw 18 percent increase in the sales of petrochemicals, 16 percent in chemicals and 12 percent in intermediates in Q1 2021, Trend reports with reference to the company.
Compared with the first quarter of 2020, sales1 in the Chemicals segment rose considerably as a result of sales growth in both divisions.
The sales increase was primarily due to significantly higher price levels. The Petrochemicals division increased prices for steam cracker products, styrene monomers, acrylics and oxo alcohols in particular. This mainly reflected the passing on of higher raw materials prices. The Intermediates division also achieved higher prices, especially in Asia, mostly in the butanediol and derivatives and the acids and polyalcohols businesses.
Sales volumes increased significantly as well due to a recovery in demand. In the Petrochemicals division, volumes were higher for steam cracker products and acrylic monomers in particular. Volumes rose significantly in the Intermediates division, especially in the butanediol and derivatives business. In both divisions, sales volumes were negatively impacted by plant shutdowns in North America due to the cold weather as well as production outages and raw material bottlenecks.
Sales performance was weighed down by negative currency effects, mainly relating to the U.S. dollar.
Income from operations (EBIT) before special items1 rose considerably compared with the first quarter of 2020 in both divisions, especially in the Petrochemicals division. Earnings development in both divisions was driven by higher margins as a result of a recovery in demand, an improvement in income from equity-accounted companies, and lower fixed costs.
EBIT included special income from the sale of the condensate splitter in Port Arthur, Texas, to Total Petrochemicals & Refining USA, Inc. in the first quarter of 2021.
BASF portfolio is organized into six segments: Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition & Care and Agricultural Solutions.
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