BASF: still sees 2018 sales up, helped by oil unit

(CercleFinance.com) - Chemicals giant BASF stuck to its outlook of slightly higher sales and operating earnings this year, after reporting a slight increase in sales and earnings for the second quarter.


BASF's second-quarter earnings before interest and tax (EBIT), before special items, rose to 2.40 billion euros in the past quarter, from 2.25 billion euros one year earlier, helped by oil and gas businesses.

The oil and gas unit saw sales rise considerably in the quarter, mainly due to higher prices, BASF said, with the price of a barrel of Brent crude oil reaching 74 dollars compared to 50 dollars in the second quarter of 2017.

The German group said total sales rose 3 per cent to 16.8 billion euros.

Despite pointing out increased risks and the trade conflict between the United States and China, BASF said its assessment of the global economic environment remains unchanged, expecting slight sales growth, a slight increase in EBIT before special items and a slight decline in EBIT for 2018.

Shares in BASF were trading 3 per cent lower at 82.1 euros on Friday, lagging a 0.2 per cent drop in the pan-European STOXX Europe 600 Optimised Chemicals index.

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