BASF raises revenue outlook, warns of risks from dwindling gas supplies


The flags of German chemical company BASF are pictured in Monheim April 20, 2012. REUTERS/Ina Fassbender/File Photo

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FRANKFURT, July 27 (Reuters) – BASF (BASFn.DE) on Wednesday raised its full-year revenue forecast as it continues to pass on higher raw material and oil prices. energy on its customers, but it flagged risks of production shutdowns in Europe if Russian gas supplies dip further.

The major chemicals maker also said the effects of the war in Ukraine and any other measures to contain the spread of COVID-19 may force it to revise its outlook.

The German group added that 2022 sales would be between 86 and 89 billion euros ($87-90 billion), down from a previous target range of 74 billion to 77 billion euros.

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“Current developments, mainly due to the war in Ukraine and its impact on energy and commodity prices and the availability of raw materials, particularly in Europe, could lead to additional headwinds, deviating assumptions,” the company said.

Specifically, it flagged the risk of production stoppages at its European sites due to further restrictions on European gas supplies from Russia, which could be partially offset by higher capacity utilization at sites outside Europe. .

BASF, which released unanticipated preliminary first-quarter results this month, said it was also targeting earnings before interest and tax (EBIT) adjusted for special items of between $6.8 billion and $7.2 billion. euros, raising the lower limit of the target range by 6.6 billion. previously.

That was down from the 7.8 billion euros reported last year.

BASF said on July 11 that its second-quarter operating profit was well above analysts’ expectations as it passed through higher raw material costs and benefited from a strong dollar. Read more

($1 = 0.9852 euros)

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Reporting by Ludwig Burger; Editing by Maria Sheahan and Uttaresh.V

Our standards: The Thomson Reuters Trust Principles.

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