Dhe BASF boss used the common assembly of the Dax group on Friday to stipulate the unprecedented dangers for his trade and his firm. In excessive circumstances, stated Martin Brudermüller at the digital event, there may be a danger of “irreversible injury” to the economic system – and even worse to the headquarters of his firm: the big chemical plant in Ludwigshafen would mainly have to shut if gas provides from Russia stopped in a single day. They’re irreplaceable.
As bitter as it’s: “Russian gas provides type the foundation for the competitiveness of our trade.” There is no such thing as a short-term answer to exchange them. Dependence on Russian gas should be lowered, however that does not occur “at the push of a button”.
Intervention by Brussels
The state of affairs is already tough sufficient with out the risk of a gas embargo, from whichever aspect. The enormously excessive vitality costs are affecting the energy-intensive chemical trade to such an extent that Brudermüller resorted to historic classification. Implementing the EU Fee’s Inexperienced Deal beneath such hostile circumstances, which he additionally undisputed, is unprecedented: “It’ll put our industrial competitiveness to the hardest take a look at in its historical past.”
The trick is in the particulars: The brand new chemical compounds legislation from Brussels, for instance, will in all probability have an effect on 12,000 chemical merchandise, which is 45 % of all substances in any respect. Many of these would fall beneath a ban.
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Nor did the warnings get any quieter as a result of BASF could be very secure. The group has already had a excellent yr in 2021 and has additionally completed effectively in the first few months of 2022. Final yr, gross sales of EUR 78.6 billion have been a powerful 33 % increased than in 2020, EBIT earlier than particular objects was exceeded by 118 % and amounted to EUR 7.8 billion. Relating to quantity progress of 10.6 % – 4.5 share factors greater than international chemical manufacturing – it was stated that BASF had grown extra strongly than it had in a very long time. Now there must be a dividend of 3.40 euros per share, a rise of 10 cents in comparison with the earlier yr. This corresponds to a distribution of 3.1 billion euros.
In the first quarter of 2022, it didn’t look as if the development would finish, as a result of gross sales rose by 19 % to 23.1 billion euros throughout this era, and EBIT earlier than particular objects by 21 % to three.8 billion euros. The corporate confirmed its objectives for the yr as a entire: It expects barely lowered gross sales of 74 to 77 billion euros and an working outcome of 6.6 to 7.2 billion euros.
Conflict impacts enterprise
Both manner, the conflict in Ukraine can be retaining BASF in suspense. The corporate has not been doing any new enterprise in Russia and Belarus since the starting of March and determined this week to additionally discontinue current enterprise actions in each international locations by the starting of July. All in all, it is about one % of group gross sales, so it is bearable. Solely the manufacturing of meals stays untouched to counteract the risk of famine brought on by the lack of grain exports from Ukraine and Russia.
That leaves the BASF building web site Wintershall Dea. Brudermüller confirmed that he needed to take the firm public with none modifications. Though the firm isn’t affected by sanctions, it has pursuits in Russian manufacturing services. That makes an IPO “presently tough”. BASF holds virtually 70 % of Wintershall Dea, the relaxation is in the fingers of the former Dea proprietor Letter One.
