(Bloomberg) -- BASF SE said profits surged after the firm raised the prices of its chemicals to help offset soaring energy costs.
Earnings before interest and tax before special items rose to 2.82 billion euros ($3.1 billion), beating analyst expectations, the German industrial giant said Monday in a release detailing preliminary earnings.
BASF, one of Europe's biggest corporate energy users, is weathering surging natural gas, oil and electricity prices, even as Russia's ongoing invasion of Ukraine threatens to disrupt supplies further. So far, strong demand for its petrochemicals and polyamides have helped the company cope with the crisis.
BASF shares turned positive after the earnings release and traded 0.29% higher as of 4.54pm in Frankfurt. The stock has fallen around 17% since the start of the year.
The company's automotive business declined last year amid output disruptions caused by the semiconductor shortage across the industry.
Net income declined to 1.22 billion euros, following an impairment charge of around 1.1 billion euros related to BASF's Wintershall DEA unit and its loans to the Nord Stream 2 gas pipeline, the company said.
“The impairment on the loan for Wintershall Dea should be priced in already,” Metzler bank analyst David Varga said via email.
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