MOSCOW (MRC) -- BASF posted a EUR130m loss in its German domestic market during the third quarter (Q3), as economic conditions deteriorated quickly, on the back of high production costs for chemicals companies, said the company.
Martin Brudermuller added, however, that the overall increase in sales revenue in Q3 came thanks to the company’s ability to pass higher input costs onto customers through higher selling prices, as well as a weaker euro, benefiting the company in its non-euro sales.
He added BASF is waiting to hear details about the German government’s plan for a natural gas price brake and other potential state aid to energy-intensive companies to decide whether it will use it.
“At BASF we are creative and have always managed without state aid at times of crisis,” said Brudermuller, speaking to reporters from the company’s headquarters in Ludwigshafen.
BASF published its Q3 financial results, showing falls in earnings and net income.
The chemicals division managed to increase Q3 sales by 2.7%, but posted large falls in earnings before interest, taxes, depreciation, and amortisation (EBITDA) and earnings before interest and taxes (EBIT, or operating profit) of 50.7% and 63.2%, respectively, year on year.
BASF has released preliminary figures for the third quarter of 2022. Sales, income from operations (EBIT) before special items and EBIT are slightly above average analyst estimates. Net income of BASF Group is expected to amount to EUR909 million. This is considerably below the prior-year quarter figure (Q3 2021: EUR1,253 million) and the average analyst estimates for the third quarter of 2022 ( EUR1,105 million). Net income contains non-cash-effective impairments on the shareholding in Wintershall Dea in the amount of about EUR740 million. These result from the partial write-down of Wintershall Dea’s participation in Nord Stream AG, which operates the Nord Stream 1 pipeline.
BASF is the world's largest chemical concern. The company's large portfolio of offers includes chemicals, plastics, special products, plant protection products, solutions for the agricultural sector, as well as oil and natural gas. The concern was founded on April 6, 1865. The headquarters is located in the city of Ludwigshafen, Germany.