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EspañolChemical giant BASF posted a net profit of more than $8.4 billion in the 1st quarter
Basf achieved sales of 23.083 billion euros (160,258 billion yuan) in the first quarter of 2022, up 19% from the same period last year. Earnings before interest and tax excluding special items amounted to 2.818 billion euros (19.565 billion yuan), up 21.4% year on year; Net income was 1.221 billion euros (8.477 billion yuan), down 28.9 percent year on year.
Basf said the decline in net income was caused by an impairment charge recognized by its holding company, Wintershall Dea AG. Basf recorded about 1.1 billion euros (7.626 billion yuan) in net income as a special charge in proportion to its shareholding (72.7 percent). The impairments, triggered by the russian-Ukrainian situation, relate to assets in Russia as well as those in the gas transport business, in addition to the Nord Stream 2 loan.
Wintershall Dea AG said in a statement that it would write off its financing for Nord Stream II. The company will not pursue or implement any other projects in Russia, and payments to Russian parties have been suspended, the statement said.
In terms of cost, the cost of natural gas in BASF plants in Europe increased by about 900 million euros (6.239 billion yuan) in the first quarter of 2022 compared to the same period last year due to the sharp rise in European natural gas prices.
In addition, BASF said sales growth was mainly driven by higher prices, especially in the chemicals business and materials business, while EBIT growth was mainly driven by significant earnings growth in the chemicals business.
Basf said tensions between Russia and Ukraine have led to a sharp rise in the price of energy and various raw materials, and so far the company's supply of key raw materials has not been restricted. Basf is closely coordinating its cooperation with suppliers, operators and government agencies to avoid disruptions to gas supplies in Europe.
At basF's annual general meeting on April 29, the company's executive and supervisory boards proposed a dividend of 3.40 euros (23.57 yuan) per share for fiscal 2021.
Posted by Leila.
