...BASF's full-year 2022 results were broadly in line with our forecasts, showing resilient financial performance in a challenging operating environment. Its S&P Global Ratings-adjusted funds from operations (FFO) to debt ratio strengthened to 51.3% at the end of 2022, from 45.3% in 2021. Despite a record high first half, the company has seen a pronounced decline in volumes and margins since the third quarter, especially in upstream businesses, resulting in a more than 5% decline in reported EBITDA, to 10.7 billion in 2022. However, this is more than offset by 1.6 billion in dividend payments from equity investments (mainly Wintershall Dea and BASF-YPC, the Chinese JV in Nanjing), with our adjusted EBITDA up by 5% to nearly 12.0 billion from 11.4 billion in 2021. In addition, the about 2.6 billion reduction in the pension deficit due to higher discount rates also supported stronger credit metrics in 2022. Although the risks from gas supply shortages have reduced, the comfortable rating headroom...
