BASF says it will reduce annual costs by 500 million euros (US$485 million) in Europe by 2024, including job cuts, as the German chemicals group took a 740 million euro writedown linked to the Nord Stream 1 gas pipeline. The company says it will also look into restructuring its chemical sites further in the region over the longer term after being hit by high energy prices.
BASF cites significantly weaker earnings in Europe due to “deteriorating framework conditions” and a loss in Germany in the third quarter as reasons for the cutbacks. The group says its third-quarter net income was below market expectations due to the writedown linked to the Nord Stream 1.
Quarterly net income was 909 million euros, down from 1.25 billion euros a year earlier and considerably below the average analyst estimate of 1.105 billion, according to the company.
The writedown relates to BASF’s shareholding in oil and gas business Wintershall Dea and its participation in the operation of the Nord Stream 1 pipeline.
Read the press release at: www.basf.com