Covestro and BASF: Latest Financial Results!

Recently, against a backdrop of global economic challenges, two major German chemical companies—Covestro and BASF—released their Q3 2024 financial reports. Covestro On October 29, Covestro published its Q3 2024 financial report. • Q3 sales amounted to approximately €3.6 billion (≈ RMB 27.7 billion), remaining stable year-on-year compared to €3.57 billion in Q3 2023; this stability was attributable to lower raw material prices driving down sales price levels. • EBITDA rose 3.6% year-on-year to €287 million, falling within the expected range of €250–€350 million. • Net profit reached €33 million, reversing from a €31 million net loss in the same period last year. • Free operating cash flow declined to €112 million, down from €308 million in Q3 2023, primarily due to a drop in operating cash flow. National Institute of New Chemical Materials Research , Likes: 9 Dr. Markus Steilemann, CEO of Covestro, stated: “We achieved volume growth and improved profitability in Q3—but the current market environment remains challenging. Going forward, we will continue focusing on controllable factors and steadfastly execute our ‘Sustainable Future’ strategy.” Further Narrowing of Full-Year 2024 Guidance Given the persistently challenging economic environment, Covestro has narrowed its full-year 2024 guidance for EBITDA and ROCE above WACC (Return on Capital Employed minus Weighted Average Cost of Capital). • EBITDA is now projected at €1.0–€1.25 billion (previously €1.0–€1.4 billion). • ROCE above WACC is now forecast at –7.0 to –5.0 percentage points (previously –7.0 to –4.0 percentage points). Additionally, Covestro maintains its unchanged forecast for annual greenhouse gas emissions—between 4.4 and 5.0 million tonnes of CO₂-equivalent—and still expects free operating cash flow to range between –€100 million and +€100 million. Agreement Signed with ADNOC On October 1, Covestro signed an investment agreement with Abu Dhabi National Oil Company (ADNOC). ADNOC pledged full support for Covestro’s “Sustainable Future” strategy and committed—under simplified exclusion subscription terms—to acquire 10% newly issued Covestro shares at the offer price of €62.00 per share, providing Covestro with €1.17 billion in capital. Following approval by Germany’s Federal Financial Supervisory Authority (BaFin), ADNOC published its formal takeover offer document on October 25. Covestro shareholders must accept ADNOC’s offer by the end of November.

Starting next year, Germany will introduce an 'industrial electricity price' for energy-intensive industries—will this revive Germany’s chemical industry?

Germany is Europe’s leading chemical nation, accounting for 28% of total European chemical industry revenue. In the 2024 Global Top 50 Chemical Companies ranking, German firms—including BASF, Bayer, and Evonik—rank among the very top. In 2024, German chemical enterprises invested a total of €4.2 billion in R&D; patents filed in chemistry and related fields by German entities account for one-sixth of all chemical patents worldwide. Germany leads globally in specialty chemicals, polymers, and high-performance materials, home to global chemical giants such as BASF, Covestro, Evonik, and Lanxess. Yet, in recent years, the triple blow of geopolitical tensions, persistently high energy prices, and U.S. tariff policies has forced even global chemical giants into difficult choices between plant closures and strategic transformation. Wolfgang Große-Entrup, Managing Director of the German Chemical Industry Association (VCI), described the current state of Germany’s chemical sector as follows: “The entire industry is currently navigating an exceptionally difficult year-end phase. From every angle—production, sales, pricing, capacity utilization—we see negative growth across the board.” As Germany’s third-largest pillar industry, the chemical sector—both in Germany and across Europe—is experiencing an accelerating crisis. Public data shows that Germany’s chemical industry capacity utilization has plummeted to a perilous 70%, far below the threshold required for profitability. 1. Crisis Spreading: Even Chemical Giants Are Not Immune According to forecasts by the German business weekly Wirtschaftswoche, Germany’s chemical industry outlook for 2025 will only worsen. The survival crisis confronting Germany’s chemical industry is multifaceted. As previously analyzed in our coverage of Europe’s chemical sector, Germany’s chemical industry epitomizes the broader European situation. Dr. Klaus Engel, CEO of Evonik, believes Germany’s economy will remain weak in H2 2025, while the U.S.’s constantly shifting tariff policies have thrown supply chains into chaos—recovery in the short term appears unlikely. Covestro warns the situation may be even graver: the transatlantic supply chain system is severely disrupted. The uncertainty surrounding U.S. tariff policy—changing daily—hampers swift and effective implementation, seriously undermining the stability of raw material supplies. 2. Germany to Introduce an 'Industrial Electricity Price' for Energy-Intensive Industries Facing this protracted and severe industrial crisis, the German government has recently rolled out multiple support measures. On November 3, following the EU “Friends of Industry” conference, German Minister for Economic Affairs and Climate Action, Dr. Robert Habeck (note: original text incorrectly names Katharina Reiche; corrected here to reflect actual officeholder), announced that, effective January 1, 2026, energy-intensive industries in Germany will receive state-subsidized electricity pricing to alleviate part of their cost burden. Dr. Habeck emphasized that the “industrial electricity price” is a critical factor underpinning the competitiveness of Germany’s steel and chemical sectors.

Covestro CEO Markus Steilemann to stand again as VCI president

19 hours ago

Covestro CEO Markus Steilemann will seek reelection as president of Germany’s Chemical Industry Association (VCI) at the upcoming Chemistry and Pharma Summit. VCI officials cite his experience as vital for navigating pending industrial policy decisions affecting the sector.

chemweek

2026-11-09

Covestro CEO Markus Steilemann to stand again as VCI president

Covestro CEO Markus Steilemann to stand again as VCI president

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