BASF Expects to Swing to 2Q Net Loss as Impairments Weigh
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
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 email@example.com
(END) Dow Jones Newswires
July 10, 2020 09:13 ET (13:13 GMT)
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