In the full year, sales in the Oil & Gas segment increased by €476 million year-on-year to €3.2 billion as a result of higher prices and volumes. The price of a barrel of Brent crude oil averaged $54 in 2017 (previous year: $44). Gas prices on European spot markets rose by 25% compared with the previous year. Volume growth was mainly driven by higher gas sales volumes. Production volumes matched the prior-year level. EBIT before special items grew by €276 million to €793 million in 2017. This is primarily attributable to the increase in oil and gas prices as well as the higher earnings contribution from BASF’s share in the Yuzhno Russkoye natural gas field. Comprehensive measures aimed at optimizing exploration and technology projects as well as the successful implementation of operational cost-saving measures also had a positive effect. Net income increased by €357 million to €719 million.
Sales in Other grew in the fourth quarter from €518 million to €608 million. EBIT before special items improved from minus €386 million to minus €38 million, mainly because of valuation effects for BASF’s long-term incentive program.
Full-year sales in Other rose by €224 million compared with 2016 to €2.2 billion, mainly as a result of higher sales prices in the raw materials trading business. At minus €764 million, EBIT before special items in Other was up €286 million on the prior-year figure. This earnings improvement is also attributable to valuation effects for the long-term incentive program.
Good start for BASF in 2018