GERMAN chemicals manufacturer BASF announced that it plans to cut 2,600 jobs in order to reduce costs, after ending the last quarter of 2022 with a loss. BASF's net loss in the fourth quarter amounted to 4.8 billion euros, the company said. In the same period a year earlier, it had posted a net profit of 898 million euros.

Earnings before interest and taxes (EBIT) before special items were 69.6 percent lower in the last quarter of last year than in the same period of 2021, plunging to 373 million euros. Revenue decreased by 2.3 percent, to 19.3 billion euros, mainly due to weaker sales volumes, the business report shows.

Specific savings measures have been announced

The company highlighted extraordinary costs last year, of around 6.3 billion euros, mainly related to an impairment loss on its stake in gas and oil producer Wintershall Dea AG. Wintershall Dea carved out exploration and production in Russia from its balance sheet, which resulted in a revaluation of that part of the business, BASF explained.

They also highlight a write-down in Wintershall Dea's gas transport business in Europe, including the write-down of its stake in the Nord Stream consortium and the financing of the Nord Stream 2 gas pipeline, which was severely damaged in explosions in September last year.

Wintershall Dea is one of the consortium members, together with fellow German company E.ON, Dutch Gasunie and French Engie. The majority owner is Russian gas producer Gazprom, with a 51 percent stake.

The company announced specific savings measures in Europe and an adjustment of production structures at the Verbund plant in Ludwigshafen. The cost-saving program will be implemented this year and next year and will be focused on Germany, they announced. The cost-cutting program should ultimately generate annual savings of more than 500 million euros by the end of 2024.

Source: index.hr