Wednesday, October 28, 2015

BASF report Q3 2015


BASF, Q3, 2015, front page

The third quarter report from BASF was published and the share price directly took a nose dive with around -4 to -5% and the closing price was down by -4.71%. Did it make any sense then?


For the report in full please go here and for the latest summary which was the BASF report Q2 2015 then please click on that link and to find out more about The Chemical Company then please visit analysis of BASF 2015.

Looking at the key figures below then we see that their sales are flat and the only thing that have positive %-age figures on are the expenses. It is funny how their party from Q1 has now only become a small sentence saying increased personnel costs in the notes. My biggest surprise is that they are now down by -13% on their chemical sales. I was truly expecting that to increase and even though they margin has crept up a little is is still less than what I would have thought. It could of course be that they are forced to buy in-house and that their internal prices are fluctuation much less than the global oil prices.


BASF, Q3, 2015, report, key figures


The unexpected news were that the asset swap that they are doing with Gazprom will end up having a negative impact in Q4. In the long run this is of course good for BASF, otherwise they would not do it, but in the short run this will of course mean that the full year 2015 will not turn out to be good and that they also stated in this report.

Conclusion: I would say that BASF are "taking" costs this year because they know it will not become a good year in the end due to low oil price, big party, increased agricultural competition and now the latest asset swap so to toss a couple of more fire woods into the fire will hopefully make 2016 look even better. I will remain as a shareholder and I will even consider to increase my holding if BASF drops a bit further.

No comments: