By Jessica Sier 
 

BASF SE said Friday that it expects to swing to a net loss in the second quarter, partly due to a non-cash-effective impairment in its Wintershall Dea shareholding and volatility in oil and gas prices.

The German chemical company said it expects a net loss of 878 million euros ($990.9 million) for the second quarter of 2020.

This is a significant drop from a net profit of EUR5.95 billion reported in the second quarter of 2019, which was assisted from the deconsolidation of Wintershall, which merged with Dea.

During the second quarter of 2020, BASF expects an EUR800 million impairment due to lower oil and gas price forecasts and changed reserve estimates.

Sales for the quarter are expected to come in at EUR12.68 billion, and earnings before interest and taxes are expected to come in at EUR59 million.

Before special items, earnings before interest and taxes are expected to be EUR226 million, down from EUR995 million in the same period a year earlier, BASF said.

 

Write to Jessica Sier at jessica.sier@wsj.com

 

(END) Dow Jones Newswires

July 10, 2020 09:13 ET (13:13 GMT)

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