“Over the course of the year, global economic growth slowed significantly. In this economic environment, we have taken decisive measures. We have significantly reduced our inventories, strengthened our cost management and pruned our portfolio,” said Kurt Bock, chairman of the board of executive directors of Basf at the annual press conference in Ludwigshafen.

For the full year, sales decreased by 5% to 70.4 billion euros. Sales prices fell in almost all divisions (minus 9%), largely on account of the sharp drop in raw material prices. Sales volumes in 2015 rose slightly overall (plus 3%), mainly as a result of higher volumes in the Oil & Gas segment. Volumes in the chemicals business were almost at the same level as the previous year. Currency effects positively influenced sales in all segments (plus 6%). The asset swap with Gazprom reduced sales (-5%). At 6.7 billion euros, Ebit before special items was 618 million euros below the level of the previous year. Major influences here were the oil-price-related decline in sales from oil and gas production activities as well as decreased earnings in other, mainly brought about by currency effects. Contrasting this was the significant increase in earnings in the functional materials and solutions segment.

For its outlook, Basf assumes the following economic conditions for 2016: global economic growth of +2.3%; growth in global chemical production of +3.4% (+3.6%); average euro/dollar exchange rate of 1.10 dollars per euro; average oil price of 40 dollars per barrel.

In 2015, the company invested around 5.2 billion euros in property, plant and equipment, compared with 5.1 billion euros in the previous year. It presumes that average yearly investment between 2016 and 2020 will be lower, compared with 2015, after having started up operations at several major plants. For 2016, it plans total investments of around 4.2 billion euros. Compared with the previous year, the company thus aims to reduce capital expenditures by 1 billion euros.

In the chemicals segment, sales in the 2015 fourth quarter fell by 22% to 3.2 billion euros mainly due to lower prices. Full-year sales declined by 14% to 14.7 billion euros, largely due to lower prices on account of decreased raw material costs. In the performance products segment, fourth-quarter sales declined by 2% to 3.6 billion euros due to prices and portfolio effects. In the full year, sales were up by 1% to 15.6 billion euros. Positive currency effects in all divisions were able to more than compensate for lower sales prices and weaker volumes. In the functional materials and solutions segment, sales in the fourth quarter increased by 1% to 4.5 billion euros due to higher volumes and positive currency effects. Full-year sales rose by 5% to 18.5 billion euros. Prices declined slightly overall, with volumes stable; currency effects were positive.