The chemical company also earns good money with its Wintershall holding.
(Photo: AP)
Ludwigshafen Higher sales prices kept the chemical group BASF on course in the second quarter. According to preliminary figures, adjusted operating profit (EBIT) was 2.34 billion euros, almost at the level of the same quarter of the previous year of 2.36 billion euros, as the Ludwigshafen-based company announced on Monday.
This means that BASF performed better than analysts had expected, who had expected earnings to fall to 2.09 billion euros. BASF was able to cushion the significant increase in energy and raw material costs with higher sales prices. Exchange rate effects also had a positive impact. However, the quantities sold fell slightly.
Sales increased from April to June by 16 percent to 22.97 billion euros, well above analyst estimates. The bottom line is that BASF made a profit of 2.09 billion euros (previous year: 1.65 billion euros), which the group owes to a significantly higher investment result from its majority stake in Wintershall Dea.
BASF still holds 72.7 percent of the oil and gas group. BASF is sticking to its forecast for this year – “for the time being” at least. Accordingly, the company continues to expect sales of between 74 and 77 (previous year: 78.6) billion euros and an adjusted operating profit of between 6.6 and 7.2 (7.8) billion euros.
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However, CEO Martin Brudermüller had already warned shareholders of “extraordinarily high levels of uncertainty” in view of the war in Ukraine and concerns about the lack of gas deliveries from Russia. BASF is considered the largest industrial gas consumer in Germany and would be massively affected by missing deliveries. If the gas supply permanently falls below half of the demand, the company would have to stop production at its world’s largest site in Ludwigshafen.
More: German industry is preparing to shut down production