Oil And Gas Fuel BASF Profit

Germany's chemicals and materials maker BASF logged double-digit growth in its profit for the second quarter. Higher sales on the back of a global recovery make the firm confident about meeting its 2014 goals.



BASF earnings before interest and taxes (Ebit) in the second quarter came in at 2.1 billion euros ($2.8 billion), which was about 221 million euros more than in the same quarter last year, according to fresh company figures released by the German chemicals and materials maker on Thursday.



The profit rise by a staggering 12 percent year-on-year was mainly the result of higher sales in BASF's chemicals business as well as in its oil and gas division, Chief Executive Kurt Bock said in a statement.







"In the past months, we invested in attractive business areas, optimized our businesses and increased out efficiency," he added.



BASF revenues in the quarter grew by 1 percent to a total of 18.5 billion euros.



While earnings increased in chemicals as well as the oil and gas segment, BASF saw profit decline in its Agricultural Solutions division. Profits there were hit by devaluating currencies against the euro, costing the company about 200 million euros in the quarter.



Nevertheless, the world's largest chemicals maker maintains its profit outlook for the whole year, saying it expected "slightly higher earnings" than in 2013. Sales, however, were expected to decrease as a result of the planned divestiture of the gas trading and storage division.



In December 2013, BASF and Russian gas giant Gazprom agreed on an asset swap giving BASF access to Russian oil fields in exchange for its gas trading and storage assets in Germany that will go to Gazprom. The deal was expected to be closed in autumn this year, BASF said.



uhe (Reuters, dpa)