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BASF on track for growth

February 26, 2013

German chemicals company BASF has reported a surge in sales, but admitted a dip in net profit because of higher taxes on gains. Nevertheless, the firm is on a continued growth course to the delight of shareholders.

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BASF compound for the production of plastics
Image: BASF

The world's biggest chemical company, BASF of Germany, on Tuesday reported a 7.1-percent surge in sales for 2012, logging full-year revenues to the tune of 78.73 billion euros ($102.83 billion).

The Ludwigshafen-based firm clocked up new sales records in its oil, gas and agricultural divisions, while seeing a drop in revenues year-on-year in its chemicals business.

BASF announced its net profit for 2012 tumbled by 21.2 percent to 4.88 billion euros, saying that the drop was primarily due to significantly higher taxes on earnings in its oil and gas business.

Growing demand

In addition, the full-year comparison of net earnings was influenced by the almost tax-free 2011 sale of the group's shares in fertilizer maker K+S.

BASF Chief Executive Kurt Bock said he saw the company well positioned for more growth in the current year despite a number of global market uncertainties.

BASF offshoot expanding North Sea drilling

"Looking ahead, we aim to grow again in 2013 and exceed the 2012 levels in sales and earnings before interest and tax," Bock said in a statement.

He also announced the executive bard would propose a higher reward for shareholders, with the current dividend-per-share of 2.50 euros to increase by 10 cents.

hg/kms (AFP, Reuters, dpa)