By Christopher Alessi
LUDWIGSHAFEN, Germany-- BASF SE on Friday reported a 25% rise in
net profit for the fourth quarter, boosted by strong growth in its
chemicals businesses.
The world's largest chemicals company said net profit for the
three-month period ended Dec. 31 was EUR1.42 billion ($1.59
billion), compared with EUR1.13 billion a year earlier. Analysts
had predicted a net profit of EUR922 million, according to a recent
poll by The Wall Street Journal.
Sales declined 0.6% to EUR18.05 billion, damped by falling sales
prices due to low oil prices. The company's closely watched
earnings before interest and taxes before special items rose 2.8%
to EUR1.46 billion, a result of higher profit margins in the
petrochemical and agrochemical units.
But the company was held back by a sharp earnings decline in its
oil and gas business, a result of the plunge in global oil prices.
Fourth quarter EBIT before special items at the unit fell 40% to
EUR347 million.
BASF's wholly owned oil and gas division, Wintershall AG,
generates roughly 30% of the group's cash flow. A shift up or down
in the annual price of Brent crude oil by $1 a barrel impacts EBIT
at Wintershall by EUR15 million, according to BASF.
BASF said it expects a slight increase in sales for 2015 and for
EBIT before special items to match the level it achieved in 2014,
at EUR7.36 billion.
Write to Christopher Alessi at christopher.alessi@wsj.com
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