BASF-Wintershall Profits Up on Shale Sale

Third-quarter revenues and net income at German chemicals giant BASF’s oil and gas division (Wintershall) increased strongly on the back of higher prices and sales volumes, it said October 24.

BASF said oil and gas sales to third parties grew by 20% year on year to €739mn ($869mn) in Q3 2017, with gas contributing more.

There was a slight decline in income from operations before special items, partly because Q3 2016 included compensation payments from contract renegotiations.

Net income from BASF’s oil and gas segment though increased by 321% to €139mn in 3Q2017 (from €33mn in Q3 2016) mainly thanks to special income from the sale of interests in a shale gas concession in Argentina; it nonetheless retains several assets there. Operating earnings (Ebitda) were 8% higher year on year at €473mn, whereas earnings before special items (Ebit) fell by 7% to €180mn.

Asked by NGW, the company declined to disclose the value of its asset sales in Argentina. 

BASF group net income rose by 50% year on year to €1.34bn. The German group was not immune from the impact of US Gulf hurricanes, and had to shut down temporarily its chemicals production sites in Texas – Freeport, Beaumont, Bishop and Pasadena – and Manati in Puerto Rico because of hurricanes Harvey, Maria and Irma.

Mark Smedley