BASF Posts Solid Q3 2024 Results, Chemicals Sector Gives a Major Boost

BASF reported its financial results for the third quarter of 2024. Despite a challenging economic environment, the company delivered solid performance that was driven by higher volumes and improved margins in its core businesses. Overall, it reported €15.7 billion ($16.82 billion) in sales, at par with last year’s same sale. They earlier projected an Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of €8.0–€8.6 billion ($8.57 to $9.21 billion) which remains unchanged.

Key Financial Highlights of BASF Group:

• EBITDA: €1.6 billion ($1.71 billion), up 5% from €1.5 billion ($1.6 billion) in Q3 2023.

• Net Income: Net income improved significantly to €287 million ($306.6 million) in Q3 2024, reversing a loss of €249 million ($266.07 million) in the same period last year.

• Free Cash Flow: €569 million ($608 million), down from €1.5 billion ($1.6 billion) in Q3 2023.

Segment-wise Performance:

•  Chemicals: Sales increased by 11.7% to €2.7 billion ($2.89 billion). It was mostly driven by strong growth in the Petrochemicals division. EBITDA rose to €342 million ($365.4 million), up 35.5% year-over-year.

•  Materials: Sales grew by 1.9% to €4.8 billion ($5.14 billion), with the Monomers division contributing significantly. EBITDA before special items increased to €484 million ($518.5 million), up 34.4% year-over-year. Although, negative currency exchange rates did impact sales.

•  Industrial Solutions: Sales declined by 2.2% to €3.5 billion ($3.75 billion), primarily due to lower prices in the Catalysts division. EBITDA decreased to €275 million ($294 million), down 13.9% year-over-year.

• Nutrition & Care: Sales increased by 1.9% to €2.6 billion ($2.79 billion), driven by higher volumes in the Care Chemicals division. EBITDA rose to €241 million ($258 million), up 11.7% year-over-year.

•  Surface Technologies: Sales declined by 2.6% to €2.1 billion ($2.25 billion), mainly due to lower prices in the Catalysts division. EBITDA decreased to €199 million ($213 million), down 3.5% year-over-year.

• Agricultural Solutions: Sales increased by 0.1% to €2.9 billion ($3.11 billion), despite lower prices and negative currency effects. EBITDA declined to €201 million ($215.3 million), down 17.7% year-over-year, primarily due to special charges related to the closure of glufosinate-ammonium production facilities.

BASF maintains its outlook for the full year 2024, expecting EBITDA between €8.0 billion and €8.6 billion ($8.57 to $9.21 billion) and free cash flow between €0.1 billion and €0.6 billion ($0.11 to $0.64 billion). BASF remains cautious about the global economic outlook, particularly in Europe, and continues to focus on cost reduction and operational efficiency.

About BASF:

BASF is a leading global chemical company that enables a sustainable future by providing solutions for challenges faced by society and the planet. From chemicals, materials, industrial solutions, surface technologies, nutrition & care, and agricultural solutions, BASF offers a wide range of products and services to meet the needs of almost every industry and consumer.