BASF is struggling with increased energy prices – earnings decline expected in 2022
Despite the increase in energy prices, BASF closed the past fiscal year with a significant increase in earnings. In the fourth quarter, the adjusted operating profit (EBIT) by ten percent 1.2 billion euros, as the chemical company announced on Friday. Analysts had expected an average of 1.35 billion euros but more. the sales volume climbed by almost a quarter 19.7 billion euros. For the European BASF sites, the additional costs due to the further rise in natural gas prices amounted to 800 million euros in the fourth quarter alone, and for the year as a whole they were around 1.5 billion euros. CEO Martin Brudermüller announced further significant price increases for the coming months in order to counteract the sharp rise in costs.
For 2022, BASF expects one Sales decline to 74 to 77 billion eurosthe adjusted operating profit is likely to fall to 6.6 to 7.2 billion euros. Last year, thanks to increased demand and higher prices, sales rose by 33 percent to 78.6 billion euros and earnings by 118 percent to 7.8 billion euros.