By Pierre Bertrand
BASF, the German chemical company, recorded a net loss of 249 million euros ($264.4 million) in the third quarter due to lower prices and volumes. This is a significant decline compared to the 909 million euros in profit achieved during the same period last year. The company's revenue also fell by 28% to 15.73 billion euros.
The earnings before interest and taxes before special items experienced a 57% decrease, amounting to 575 million euros. BASF attributes this decline to the negative earnings of Wintershall Dea, which reported a net loss of 535 million euros.
In an effort to improve its financial situation, BASF aims to achieve more than 600 million euros in non-production cost savings by the end of next year, with a further increase to over 700 million euros by the end of 2026.
While the global chemical industry is anticipated to stabilize in the fourth quarter, BASF raises concerns about the uncertain macroeconomic outlook. They highlight potential challenges such as the current interest-rate policy environment and increasing geopolitical risks. Moreover, rising raw-materials prices might negatively impact demand and margins.
Despite the challenges, BASF remains confident in its 2023 guidance.