Demand is recovering strongly, and the first half performance report of the world's large chemical companies is released!

This week, many chemical companies announced their results for the second quarter of this year. With the recovery of the economy and the growth of chemical consumption demand, the earnings of these large chemical manufacturers maintained a strong growth momentum in the first half of this year.

BASF

Sales in the first half of the year increased by 33% year-on-year

BASF (BASF) announced the group's second-quarter financial results. BASF's sales in the second quarter of 2021 were 19.8 billion euros, an increase of 7.1 billion euros from the same period last year, an increase of 56%. Sales growth was mainly due to the increase in sales and prices in various business areas. The price level of surface treatment technology business, chemical business and material business has increased significantly. Sales growth is mainly reflected in the surface treatment business field, the material business field and the industrial solution business field.

# Income by business area #

Sales in the chemical business area increased significantly by 91% from the same period last year to 3.4 billion euros. This is mainly due to the lack of product supply leading to strong market demand, which has significantly increased the price level.

Compared with the second quarter of 2020, the sales of the materials business in the second quarter of 2021 increased by 75% to 3.7 billion euros, mainly due to the significant increase in sales driven by market demand. The pre-interest and tax earnings of its two business units, excluding special items, increased significantly to 792 million euros.

In the second quarter of 2021, the industrial solutions business area had sales of 2.4 billion euros, a significant increase from the same period last year, especially in the dispersions and pigments business unit.

Sales in the surface treatment technology business area were 5.9 billion euros, a significant increase over the same period last year, especially in the catalyst business unit. 90% of the sales growth was due to the significant increase in overall prices and sales.

BASF’s sales in the second quarter of 2021 increased by 400 million euros over the first quarter, and the first quarter’s sales were 19.4 billion euros. Sales in the first half of the year increased by 33% year-on-year. BASF also mentioned in its financial report for the first quarter that the increase in sales was mainly due to the increase in prices and sales.

Based on the outstanding performance in the first half of 2021, the continued improvement of the global economy, and the substantial increase in revenue expectations in the chemical business and materials business, BASF has set a full-year outlook for 2021: sales of 74-77 billion euros ; Excluding special items, the EBIT is 7-7.5 billion euros.

DOW

Q2 sales increased by 2 billion U.S. dollars over Q1

The Dow Corporation (DOW) financial report for the second quarter of 2021 showed that net sales were US$13.9 billion, a year-on-year increase of 66% and a month-on-month increase of 17%. All operating segments, business units and regions achieved growth.

Local prices increased by 53% year-on-year and 16% month-on-month. All operating segments, business departments and regions have increased, mainly due to the tight supply and demand relationship in important value chains.

Sales increased by 9% year-on-year, and all operating segments achieved growth. The largest increase was in polyurethane and silicone applications. Thanks to the rebound in demand after the new crown epidemic, the month-on-month increase was 1%.

In addition, GAAP net income was $1.9 billion. Operating profit before interest and taxes (EBIT) increased by US$2.8 billion year-on-year, and all operating segments and business units achieved growth. This increase reflects the increase in profit margins and equity returns due to tight supply and demand in the major value chains. EBIT increased by US$1.3 billion month-on-month, and all operating segments and business units achieved growth.

• Dow’s net sales in the second quarter of 2021 increased by US$2 billion from the first quarter, and net sales in the first quarter were US$11.9 billion. The second quarter’s performance growth is within Dow’s expectations for this year. Dow’s Chairman and CEO Jim Fitterling said earlier this year that the economic recovery is expected to expand, which will continue to benefit Dow’s various businesses.

LG Chem

Sales and operating profit hit a new high

LG Chem’s sales in the second quarter of 2021 were US$10.22 billion, an increase of 65.2% year-on-year. Operating profit was US$1.99 billion, a year-on-year increase of 290.2%. Both sales and operating profit hit a new quarterly record.

In the first quarter of this year, LG Chem’s operating profit exceeded US$1.2 billion for the first time since the establishment of the company, and now it breaks through again in the second quarter, continuing to set a new record for the company’s performance.

Regarding the second quarter results, LG Chem’s CFO Che Dong Suk said, “Through the significant growth of the petrochemical business, the continuous expansion of the battery materials business, and the overall development of each business unit, including the highest quarterly sales in life sciences, LG Chem’s second-quarter Outstanding quarterly performance".

He also emphasized: "LG Chem will comprehensively promote business development and strategic investment based on the three new ESG growth engines of sustainable green materials, e-Mobility battery materials, and global innovative new drugs."

Solvay

Q2 net profit of US$327 million

Solvay announced its second quarter results this week. Basic earnings before interest, taxes, depreciation and amortization (EBITDA) was €602 million. In the first half of 2021, basic profit before interest, tax, depreciation and amortization increased by 5% over the same period in 2019.

Basic net profit was 276 million euros (327 million U.S. dollars), twice as much as 109 million euros in the same period last year. Solvay's net profit for the quarter exceeded expectations.

Due to the recovery of the automotive, electronics, and construction industries, net sales were 2.46 billion euros, an increase of 13% over the previous year, of which June sales exceeded the level of 2019.

Solvay said that the increase in raw material, energy and logistics costs reduced the profit before interest, taxes, depreciation and amortization by approximately 50 million euros in the second quarter.

Solvay plans to raise its 2021 EBITDA forecast to 2.3 billion euros from the previous 2.2 billion euros. Solvay CEO LLham Kadri said: "We are still focused on easing the inflation environment and reinvesting in our key growth areas, including batteries and electronics, which will drive the entire long-term strong growth trend."

It is understood that Solvay's net profit in the first quarter was 240 million euros, and the net profit in the second quarter increased slightly from the first quarter.