BASF ( OTCQX:BASFY ) edges lower in European trading Wednesday after confirming preliminary Q2 results, including an increase in net profit and sales , and raising its full-year sales and earnings guidance.
BASF ( OTCQX:BASFY ) said Q2 income from operations, or EBIT, rose 1.5% Y/Y to €2.35B and revenues jumped 16% to nearly €23B, citing significant price increases in almost all business segments.
The company said it paid an extra €800M to keep its plants running during the quarter compared with a year ago, due to soaring natural gas prices.
Based on H1's positive performance, the company raised its full-year guidance for EBIT to €6.8B-€7.2B from €6.6B-€7.2B previously and for sales to €86B-€89B from prior expectations of €74B-€77B, assuming no new lockdowns in China or gas production shutdowns in Europe.
The company has raised prices and will continue to do so in order to offset rising energy costs, CEO Martin Brudermueller said during the earnings conference call.
BASF ( OTCQX:BASFY ) said demand for natural gas from all its European plants is being met for now ; if the German government declares the highest stage of emergency - part of a plan to cope with Russia's curbing of gas flows to Europe - BASF said it would still get enough gas to run its largest plant in the country, Ludwigshafen, at a reduced load.
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BASF hit with €800M rise in Q2 energy costs but raises full-year guidance