The world’s largest chemical company, BASF, has said continuously low oil prices have taken their toll on its second-quarter performance. But executives insisted the firm was holding up well despite volatile markets.
A strong rise in demand for synthetic materials helped BASF boost its operating profit in the second quarter, the German chemicals giant reported Friday.
Operating earnings before special effects rose by 2 percent year-on-year to total 2 billion euros ($2.2 billion), while analysts had expected the result to be even better.
BASF logged a 3-percent jump in revenues to 19.1 billion euros, with the increase not least attributable to a weaker euro. Bottom-line profit stagnated at 1.27 billion euros in the second quarter.
BASF admitted that the improvement in its operating performance was solely due to a flourishing Functional Materials & Solutions division, also catering for the building industry.
In other segments such as the oil and gas division, BASF recorded a dip in earnings as low oil prices ate into profits.
Nonetheless, CEO Kurt Bock provided an optimistic outlook for the rest of the year.
“We’re hoping to prove our mettle in a very volatile market environment, and we’re aiming to further increase revenues, albeit slightly,” Bock said in a statement.
hg/pad (dpa, Reuters)