BERLIN–BASF SE (BAS.XE) reported Wednesday a fall in profit in the second quarter due to lower oil and gas prices, and said its full-year outlook was ambitious.
The German chemical company’s net profit was 1.09 billion euros ($1.19 billion) in the three months ending June 30, down 14% from EUR1.27 billion a year earlier and missing analysts’ EUR1.17 billion consensus estimate.
Revenue declined 24% to EUR14.48 billion following the divestiture of BASF’s natural gas trading and storage business to Russia’s OAO Gazprom. Earnings before interest, taxes and special items decreased 16% to EUR1.7 billion.
BASF continues to predict a slight decline in full-year EBIT before special items, based on an average oil price of $40 per barrel, but Chief Executive Kurt Bock said the outlook “remains ambitious in the current volatile and challenging environment, and is particularly dependent on further oil price development.”
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