BASF achieves surprising profit growth in the 2nd quarter

FRANKFURT (Dow Jones) — Thanks to higher sales prices and positive exchange rate effects, the chemical group BASF surprisingly increased its profits in the second quarter with significantly higher sales. As the DAX group announced on the basis of preliminary key figures, a significantly higher investment result from Wintershall Dea also spurred on. For the time being, BASF is sticking to its forecast for the year as a whole.

According to the announcement, sales increased in the three months by 16 percent to 22.974 billion euros. According to an estimate by Vara, analysts expected only 21.737 billion euros for the group. Earnings from operations (EBIT) before special items are expected to be EUR 2.339 billion, almost at the same level as in the same quarter of the previous year – and well above the analysts’ consensus of EUR 2.092 billion. “Increased prices for raw materials and energy could largely be passed on through higher sales prices,” the Ludwigshafen-based group explained.

The bottom line is that profits are expected to climb to 2.090 billion from 1.654 billion euros in the previous year, according to BASF. The analyst estimates would only have been 1.408 billion euros. According to BASF, the significant increase compared to the same quarter of the previous year resulted in particular from the significantly higher investment result from Wintershall Dea.

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(END) Dow Jones Newswires

July 11, 2022 12:03 ET (16:03 GMT)

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