A tough 2016 for BASF

2016 financial year was not the best for BASF, indeed the German chemical group reported a 18% drop in sales (€57.6bn) and a 6% decrease in EBIT (€6.3bn). The hard times experienced by the Ludwigshafen-headquartered group are mainly due to oil price dropping as well as divestitures – completed in September 2015 – of the gas trading and storage business, which alone was worth approximately €10bn. In the chemistry sector, the Performance Products (+€379m) and Functional Materials & Solutions (+€297m) delivered outstanding performances. CEO Kurt Bock took the opportunity to provide the 2017 guidance for BASF. The group expects a rise in revenues thanks to the US recovery, which will offset the Chinese, Russian and Brazilian economies slowing down. BASF’s shares lost over 2% (Frankfurt) after the announcement. (Source BASF)