BFFAF - BASF's preliminary Q1 net profit hit by Nord Stream 2 impairment

BASF (OTCQX:BASFY) shares spike, then fall back close to breakeven, after the company reported Monday that Q1 revenues rose 19% Y/Y to €23.1B but net profit tumbled 29% to €1.22B from €1.72B a year earlier, citing an impairment booked by the company's oil and gas unit that had co-funded the Nord Stream 2 pipeline. Wintershall Dea said last month that it was writing off €1.1B financing of the now-abandoned project. BASF said Q1 EBITDA increased to €2.79B from €2.31B in the year-ago period, exceeding analysts' expectations of €2.38B, according to a Vara consensus estimate. According to Bloomberg, Berenberg analysts say the Q1 beat is "somewhat expected" and macro conditions may have deteriorated since January and February. The results are preliminary, and BASF plans to publish its Q1 statement on April 29. Supported by inventory building as rising inflation comes into play, Jefferies recently maintained its Buy rating on BASF.

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BASF's preliminary Q1 net profit hit by Nord Stream 2 impairment