0.9 IS OUR LTIFR for the year 2021. For the first time ever, LANXESS’ lost time in- jury frequency rate stands below one. This means that there have never been so few workplace accidents. “This is another major milestone on our path to zero accidents,” said CEO Matthias Zachert. SALES INCREASE Cologne. “We promised 2021 would be a year of growth – and against all odds, we delivered,” announced CEO Matthias Zachert at the annual press conference in Cologne on March 11. Despite massive increases in energy, raw materials, and shipping costs, the group significantly improved its sales and earnings. At 7.557 billion euros, consolidated sales in 2021 increased by 23.8 percent compared with the previous year’s figure of 6.104 billion euros. EBITA before special items increased by 17.2 percent to 1.010 billion euros, compared with 862 million euros in the previous year. Strong demand from customer sectors such as the automotive, construction, transportation, and manufacturing industries particularly contributed to the strong results across all segments of the group. “We were largely able to pass on the extreme increases on the cost side to the market,” Zachert explained. In addition, LANXESS completed four acquisitions in the midst of the pandemic, significantly expanding the Consumer Protection segment. “All of this demonstrates the strength and stability that LANXESS now possesses,” concluded Zachert. S S E X N A L : s o t o h P THREE QUESTIONS FOR ROLF KETTNER, Head of Energy Procurement, Group Function Global Procurement & Logistics “No End in Sight” The war in Ukraine is driving up energy prices. Can we ex- pect them to fall again in the foreseeable future? Rolf Kettner: It’s virtually impos- sible to make any accurate predic- tions these days. In addition to the unforeseeable impact of the war, there are other reasons for the energy shortage. We had a long winter in Europe in 2020/21, and by the spring of 2021, European gas storage facilities were empty. Everyone was still counting on the Nord Stream 2 gas pipeline beginning operations. At the same time, gas consumption in Europe picked up at the end of the pandemic depression, and the price of gas rose as a result. High coal prices and relatively empty storage facilities caused it to rise further. Now we have a war raging in Ukraine. The situation is coming to a head. The sanctions against Russia will also have consequences. And Norway cannot compensate for the loss of Russian supplies on its own. We expect gas to be very expensive in the year ahead. Before the war, we were anticipating an average of €75/MWh. To put this in perspec- tive, gas prices normally ranged between €10 and €25/MWh on average. In the United States, we were forecasting a price of €12.50/MWh. Now everything is up in the air. What about electricity prices? In the United States, this depends on the price of gas, which is six times cheaper than in the EU. In Europe, the EU’s Green Deal is also affecting price trends. Car- bon offset prices are increasing. High coal, gas, and carbon offset prices mean that electricity prices are also sky high. This is because even if we differentiate between coal, gas, and electricity as energy sources, the respective price fluc- tuations have an impact on each other. When China purchased coal for its industry and population in large quantities at the end of 2020, it caused coal to become scarce and the price to rise. But why are electricity prices particularly high in Germany? Germany is a special case in this respect, as the last two nuclear power plants will be taken offline here at the end of 2022 and the last coal-fired power plants will follow by the mid-2030s. At present, Germany purchases nuclear power from France. But it’s expensive because France recently produced 10 percent less nuclear power. As a result, German electricity prices have reached record levels, peaking at €221/MWh in the fall of 2021 and exceeding €160/MWh since then. Even before the war, we were expecting to see an av- erage price of just under €200/ MWh in 2022. And that applied to the whole of Europe, because prices don’t vary that much across the EU. 01.2022 | Xpress 05