BASF had already published preliminary figures on July 11. Compared to the same quarter of the previous year, the BASF Group increased its sales by 3.2 billion euros to 23.0 billion euros. This corresponds to an increase of 16.3 percent. The decisive factor here was the significant price increases that BASF was able to implement in almost all segments.

At 2.3 billion euros, income from operations (EBIT) before special items reached the level of the strong prior-year quarter. Agricultural Solutions and Nutrition & Care increased earnings significantly, while earnings in the Industrial Solutions segment rose slightly. Others significantly improved EBIT before special items. By contrast, the Chemicals and Materials segments generated significantly lower EBIT before special items. EBIT before special items also fell considerably in the Surface Technologies segment.

EBIT increased by 34 million euros to 2.4 billion euros. Income from operations before depreciation, amortization and special items (EBITDA pre exceptionals) rose by 76 million euros to 3.3 billion euros in the second quarter of 2022 and EBITDA by 197 million euros to 3.4 billion euros.

Cash flow from operating activities amounted to EUR 1.2 billion in the second quarter of 2022. This corresponds to a decrease of 1.3 billion euros compared to the same quarter of the previous year. Free cash flow in the second quarter of 2022 amounted to EUR 336 million, compared to EUR 1.8 billion in the second quarter of 2021.

Outlook 2022 for the BASF Group

BASF has adjusted its assessment of global economic conditions in 2022 as follows:

• Growth in gross domestic product: +2.5 percent
• Growth in industrial production: +3.0 percent
• Growth in chemical production: +2.5 percent
• Average US dollar exchange rate of 1.07 US dollars/euro
• Brent oil price of USD 110/barrel on average for the year

For the second half of 2022, BASF anticipates a gradual slowdown in economic development worldwide, albeit to a much greater extent in Europe. The company assumes that there will be neither severe restrictions due to renewed lockdowns in China nor production shutdowns due to a gas shortage in Europe.

Due to the very positive business development in the first half of 2022, the forecast for the BASF Group for the 2022 financial year was adjusted as follows on the basis of the aforementioned assumptions

• Sales growth to between 86 billion euros and 89 billion euros
• EBIT before special items between 6.8 billion euros and 7.2 billion euros
• Return on capital employed (ROCE) between 10.5% and 11.0%
• Reduction in_{CO2 emissions} to between 18.4 million tons and 19.4 million tons

Due to current developments, primarily as a result of the war in Ukraine and the resulting impact on energy and commodity prices as well as on the availability of raw materials, particularly in Europe, additional burdens may arise in deviation from the assumptions presented above. Risks may arise in particular from production interruptions at the major European locations as a result of further restrictions on European gas supplies from Russia. In this case, the loss of European capacities could be partially offset by higher plant utilization at non-European locations. Further risks may arise from the further course of the coronavirus pandemic and renewed measures to contain the number of infections. Opportunities may also arise in the event of an economic slowdown due to sustained high margins. BASF is countering the economic slowdown with cost-cutting measures.