FRANKFURT, (APP/AFP): German chemicals giant BASF said
Friday that its first-quarter business took a hit from low oil prices, but bottom-line profit increased nevertheless thanks to lower taxes.
BASF said in a statement that net profit rose by 18 percent to 1.4
billion euros ($1.6 billion) in the period from January to March.
But that was largely due to a much lower tax rate in the three-month
period, BASF explained.
Underlying or operating profit declined by six percent to 1.9 billion
euros and revenues dropped by 29 percent to 14.2 billion euros, BASF said.
This was “largely on account of the divestiture of the gas trading
and storage business,” the statement said.
“The lower price of oil led to declining sales prices, especially in
the chemicals segment,” even if in volume terms, sales matched the level of the previous first quarter.
Looking ahead to the whole of 2016, BASF said it “anticipates a
continuation of the currently challenging conditions along with substantial
risks.”
Nevertheless, chief executive Kurt Bock said the group was sticking
to its full-year sales and earnings forecasts.