BASF has announced its second quarter 2014 (Q2) financial results, demonstrating positive development.
Sales rose € 18.5 billion, an increase of 1% compared to the previous year. Dr Kurt Bock, Chairman of the Board of Executive Directors of BASF SE, commented: “This was largely the result of higher sales volumes in our chemicals business, which comprises the Chemicals, Performance Products and Functional Materials & Solutions segments, as well as in the Oil & Gas segment.
Sales prices decreased slightly, but on balance portfolio measures increased sales by 1%. Continuing negative currency effect (minus 4%) and a considerable decline in sales in Other dampened sales growth for the BASF Group.
Income from operations (EBIT) before special items reached € 2.1 billion, surpassing the level of the second quarter of 2013 by € 221 million. Earnings increased considerably in the Chemicals business and Oil & Gas segment.
Bock said: “ The devaluation of almost all major currencies against the euro negatively impacted earnings by roughly € 200 million compared to the previous second quarter”.
EBIT increased by € 246 million to € 2.0 billion compared with last year. Net income rose by € 142 million to € 1.3 billion. Earnings per share were € 1.41 for Q2 2014 compared to € 1.26 in the same period of the previous year. Adjusted for special items and amortization of intangible assets, earnings per share rose to € 1.54.
Oil and gas
Sales in the Oil & Gas segment exceeded the level of the previous second quarter by 13%. Sales volumes increased sharply, especially in the Exploration & Production business sector. The activities in Norway acquired from Statoil also contributed to sales growth. In the Natural Gas Trading business sector, significantly lower gas prices dampened sales development. EBIT before special items rose by € 205 million to € 587 million as a result of higher volumes.
Adapted from a press release by Emma McAleavey.
Read the article online at: https://www.oilfieldtechnology.com/exploration/29072014/basf-second-quarter-results-1026/