German chemicals giant BASE SE has posted a 23% rise in earnings (EBITDA) at €3bn on the third quarter of 2017, thanks to higher sales prices and higher volumes.
The company reported a 9% rise in sales to €15.3bn in the three months to end of September, lifted by Chemetall business acquired in December last year.
Compared with the prior-year quarter, EBITDA before special items increased by €303m to €2.8bn.
“For the second half of 2017, we now expect the BASF Group’s EBIT before special items to considerably exceed the level of the second half of 2016,” said Kurt Bock, chairman of the board of executive directors of BASF SE.
Sales in the chemicals segment rose by 25% compared with the prior-year quarter to approximately €4 billion. This was largely due to higher prices in all divisions, especially in monomers.
While currency effects slightly dampened sales in all divisions, EBIT before special items rose by over €600m to €1.1bn.
This, according to BASF, was mainly a result of higher margins, especially in the monomers division.
In the performance products segment, sales increased by 2% compared with the third quarter of 2016 to just under €4bn as a result of volumes growth in all divisions.
Sales prices were on a level with the prior-year quarter. Currency effects, particularly from the US dollar, and portfolio effects dampened sales growth. EBIT before special items declined by €88m to €385m.
Sales in the functional materials & solutions segment were up 7% on the third quarter of 2016, at around €5bn. This was attributable to higher prices as well as the Chemetall business, which was acquired from Albemarle in December 2016.
Sales volumes rose in every division except catalysts, where BASF registered a considerable decline in precious metal trading volumes.