- Expected sales of EUR 87,327 million and expected EBIT before special items of EUR 6,878 million at the level of average analyst estimates
- EBIT expected to be EUR 6,548 million, below analyst consensus due to non-cash-effective impairments
- Net income expected to be –EUR 1,376 million due to non-cash-effective impairments on the shareholding in Wintershall Dea, below analyst consensus
Ludwigshafen – January 17, 2023
BASF has released preliminary figures for the full year 2022. Expected sales of EUR 87,327 million and expected income from operations (EBIT) before special items of EUR 6,878 million are in line with the ranges forecast by BASF and at the level of average analyst estimates for 2022.
The BASF Group’s EBIT amounted to an expected EUR 6,548 million in 2022, below the figure for the prior year (2021: EUR 7,677 million) and below analyst consensus for 2022 (Vara: EUR 6,836 million). This includes non-cash-effective impairments on a plant in the Chemicals segment.
Net income of BASF Group is expected to amount to –EUR 1,376 million in 2022. This is considerably below the prior-year figure (2021: EUR 5,523 million) and the average analyst estimates for 2022 (Vara: EUR 4,768 million). Net income contains non-cash-effective impairments on the shareholding in Wintershall Dea AG in the amount of about EUR 7.3 billion, of which EUR 5.4 billion in Q4 2022. These impairments result in particular from the deconsolidation of the Russian exploration and production activities of Wintershall Dea due to the extensive loss of actual influence and economic expropriation. Wintershall Dea intends to fully exit Russia in an orderly manner complying with all applicable legal obligations. Accordingly, the Russian participations of Wintershall Dea have been re-evaluated and write-downs on the European gas transportation business have been made, including a complete write-down on the participation in Nord Stream AG.
Sales rose by 11 percent in 2022 to an expected EUR 87,327 million (2021: EUR 78,598 million) and were thus in line with the EUR 86 billion to EUR 89 billion range forecast by BASF. The average analyst estimates for sales 2022 of the BASF Group were EUR 87,950 million according to Vara. The increase in sales was mainly driven by higher prices and positive currency effects. Volumes reduced sales.
EBIT before special items amounted to an expected EUR 6,878 million, a decrease of EUR 890 million compared with the prior year (2021: EUR 7,768 million) and in line with the EUR 6.8 billion to EUR 7.2 billion range forecast by BASF. On average analysts had expected EBIT before special items of EUR 6,949 million in 2022 according to Vara.
The average analyst estimates for EBIT before special items of the segments were exceeded in 2022 by Agricultural Solutions and Surface Technologies. EBIT before special items of Materials and Industrial Solutions almost matched average analyst estimates. EBIT before special items fell short of average analyst estimates in the Nutrition & Care and Chemicals segments. In Other, EBIT before special items was better than expected by analysts on average.
The overview of analyst estimates, which is compiled monthly on behalf of BASF, can be found at: www.basf.com/analysts-estimates.
On Friday, February 24, 2023, at 7:00 a.m. CET, the company will publish the BASF Report 2022 and will comment on the figures at the virtual conference for analysts and investors.
At BASF, we create chemistry for a sustainable future. We combine economic success with environmental protection and social responsibility. Around 111000 employees in the BASF Group contribute to the success of our customers in nearly all sectors and almost every country in the world. Our portfolio comprises six segments: Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition & Care and Agricultural Solutions. BASF generated sales of EUR 78.6 billion in 2021. BASF shares are traded on the stock exchange in Frankfurt (BAS) and as American Depositary Receipts (BASFY) in the United States. Further information at www.basf.com