Philippe Kehren’s Post

Solvay achieved a solid start to the year and beat consensus with the publication of its Q1 earnings. The performance in Q1 was marked by strong free cash flow, resilient EBITDA (sequentially up versus Q4 2023) and solid returns. This positive momentum was enabled by discipline on costs and capex while challenging macroeconomic conditions persist. #FinancialResults #Sustainability #Innovation #EssentialTogether https://lnkd.in/ebDxpsR8

Solvay's 2023 annual report is now available. Our annual report offers a comprehensive reflection of the new Solvay. It details our performance updates, strategic vision, and the strides we've made in operational excellence and #sustainability. Our commitment to steering the industry towards a sustainable future is unwavering. Through our mastery of technology and sustainable practices, we're driving Solvay's ongoing transformation. We're not just aiming to meet industry standards; we're setting new ones. As we look ahead, our ambitions are high. Building on our strong foundation, we're committed to enhancing our performance metrics and establishing new industry standards. Our objective is clear: to not only preserve our position in the top quartile but to redefine what's possible in our industry. Join us in celebrating this new chapter with Solvay. Together, we're creating value, streamlining our businesses, and paving the way for a sustainable future that sets a standard for others to follow. #SolvayLife #EssentialTogether https://bit.ly/4d12dEX

The future is here

Time to announce our Q1 2024 results, marking a significant milestone in our journey at Solvay. We ended the quarter with our inaugural bond placement - it has not only bolstered our capital structure, but has also provided us with the financial stability necessary to execute our strategy effectively. With over 250 investors participating, our bond placement was nearly six times oversubscribed, underscoring the robust support for Solvay's vision and strategy. This resounding success reflects confidence in our ability to drive sustainable growth and create long-term value for all stakeholders. In Q1, despite challenges, we witnessed promising developments across various segments. Our focus on operational efficiency and cost-saving measures has yielded tangible results. Our EBITDA and Cash generation demonstrated resilience and strategic foresight in navigating market dynamics. Looking ahead, we remain committed to maintaining our leadership position and delivering investments for sustainable growth. Our capacity expansion initiatives in France, Italy, and China underscore our dedication to meeting evolving market demands while prioritizing sustainability. I extend my gratitude to our dedicated team and valued stakeholders for their unwavering support. Together, we are forging a path towards a brighter, more sustainable future for Solvay. https://bit.ly/4acO19x #FinancialResults #Sustainability #Innovation #EssentialTogether

The #AnnualReport is out, and I am thrilled to share that our report features our complete financials for the new Solvay. Our commitment to capital discipline is paramount, guiding a clear and focused cash allocation strategy: ... Essential Capex: Approximately one-third of our cash is allocated to essential capex, emphasizing safety, maintenance and investments in energy transition. These investments aren't just crucial for security of supply and competitiveness, but also for our planet's well-being. ... Shareholder Rewards: Another third of our cash is dedicated to rewarding our shareholders with stable to increasing dividends. Your support drives our success, and we're committed to delivering value back to you. ... Process Efficiency and Capacity Expansion: Based on project merit and affordability, the remaining cash is invested in enhancing process efficiency and expanding our production capacities. We aim to align Solvay's growth with our customers' evolving needs. Thank you to everyone who has been a part of Solvay's journey and to those who helped prepare this report. Together, we're shaping a sustainable and prosperous future. #SolvayLife #EssentialTogether https://bit.ly/3U3O7dj

Belgium-based chemical company Solvay maintains its 2023 guidance amid challenging demand conditions, but its future dynamics hinge on the operational separation of its commodities and specialties divisions. CEO Ilham Kadri emphasized the importance of setting best practices during this division to facilitate the smooth transition to separately listed entities, while the company continues its cost-saving efforts and invests in China despite weaker-than-expected recovery in the region. Solvay's focus on efficient operations, resilience, and strategic positioning in the market is anticipated to shape its trajectory amidst industry challenges. https://lnkd.in/dtA8YCm5

I am proud that we announced a further step in BASF’s corporate strategy at an event for investors and analysts in Ludwigshafen – a differentiated approach to steering our businesses for more profitability. This approach will allow our businesses to further adjust their specific business models to the needs of their customer industries. BASF will introduce new KPIs for the entire Group and its operating divisions. We will put an even stronger emphasis on EBITDA before special items and cash generation. BASF will continue to use ROCE as a mid-term steering KPI to stress the importance of steering towards asset profitability. In line with the changes to the internal steering approach, BASF will also adapt its external reporting and forecasting. As of the BASF Report 2023, to be published on February 23, 2024, BASF will forecast EBITDA before special items and free cash flow at Group level. Furthermore, the company will provide a forecast for EBITDA before special items and cash flow for the segments. Further information on the #BASF Investor Update and a link to the replay can be found at: https://lnkd.in/gNssVhf4 #wecreatechemistry #InvestorUpdate #BASF_InvestorUpdate

BASF has substantially reduced #spending plans as part of wider belt-tightening initiatives in light of ongoing difficult #macroeconomic conditions, with €4bn expected to be cut from the Germany-based chemicals major’s 2023-2027 budget. #BASF CEO Dr. Martin Brudermüller said that the company’s five-year capital expenditure #budget is expected to be €24.8bn compared to original expectations of €28.8bn, with 2023 levels to be €1bn below its original plans. “It’s quite obvious if you are operating at a low utilisation rate because #demand is low as in #Europe, you can imagine that you need new #capacities at a later point in time, maybe you don’t even need them at all,” he added. Read more here: https://lnkd.in/dEqQtwKf

The leaders

Facing economic fluctuations, BASF is sharpening its cost-cutting strategy in Germany. Despite challenges, we remain optimistic about earnings recovery. BASF is tactfully reducing costs while maintaining our operational integrity, preparing to thrive beyond the current market turbulence. Signs suggest industry demand is picking up, sparking talks of an earnings resurgence. We're balancing operational excellence with cost-efficiency for continued success. As the market thaws, BASF aims to emerge leaner and poised for opportunity. #BASF #CostEfficiency #MarketOptimism