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BASF TO POST $7.9 BILLION LOSS FROM EXIT OF ITS RUSSIAN BUSINESSES
Jan. 18, 2023
Dow Jones reports:
Germany's BASF SE expects to post a net loss for 2022 after booking impairments worth 7.3 billion euros ($7.90 billion) from the deconsolidation of Russian exploration and production activities after Moscow's invasion of Ukraine.
The German chemicals giant said Tuesday that it expects to book EUR5.4 billion of the total impairment in the fourth quarter of 2022, swinging to a net loss of EUR1.38 billion from a 2021 profit of EUR5.52 billion. BASF's forecast, based on preliminary figures, is considerably below analysts' forecast of a EUR4.77 billion profit, the company said.
"These impairments result in particular from the deconsolidation of the Russian exploration and production activities of Wintershall Dea due to the extensive loss of actual influence and economic expropriation. Wintershall Dea intends to fully exit Russia in an orderly manner complying with all applicable legal obligations. Accordingly, the Russian participations of Wintershall Dea have been re-evaluated and write-downs on the European gas transportation business have been made, including a complete write-down on the participation in Nord Stream AG," BASF said.
Earnings before interest and taxes before special items for the year fell to EUR6.88 billion from EUR7.77 billion, while sales climbed 11% in 2022 to EUR87.33 billion, BASF said.
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