BAS BASF AG

   By Ed Frankl 
 

BASF SE said Friday that fourth-quarter profit fell on year although sales rose, as it dealt with the impact of higher gas prices by ramping up prices.

The German chemicals conglomerate said quarterly net profit was 898 million euros ($1.01 billion), down from EUR1.06 billion for the same period a year earlier.

Sales at the Ludwigshafen-based company rose 24% to EUR19.78 billion, after the company increased sales prices by 25% and volumes by 11% as it combated rising inflationary pressures.

BASF's earnings were hit by around EUR800 million in additional costs due to rising natural-gas prices in Europe in 4Q, it said. Higher raw-material prices and logistics costs also hurt the company.

"We will implement further substantial price increases in the coming months to pass on the significantly higher costs and improve our margins in the downstream businesses," Chief Executive Martin Brudermueller said.

The net profit figure fell behind expectations of EUR969 million, though sales were ahead of views EUR18.44 billion, according to analysts' estimates compiled by the company.

BASF released 2022 guidance, including sales of between EUR74 billion and EUR77 billion, which falls below 2021's full-year figure of EUR78.60 billion.

It also expects earnings before interest and taxes before special items to be between EUR6.6 billion and EUR7.2 billion--compared with 7.77 billion in 2021--and return on capital employed to be between 11.4% and 12.5%.

BASF proposed a dividend of EUR3.40 a share for the year, up from EUR3.30 in 2020.

Write to Ed Frankl at edward.frankl@dowjones.com

(END) Dow Jones Newswires

February 25, 2022 01:40 ET (06:40 GMT)

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