Monday, 7 March 2016

BASF annual report 2015

BASF, annual, 2015, report, front page

My German chemical company BASF arrived with their sad annual report for 2015. If I remember correctly the market accepted it pretty ok. From my point of view this year will not go down in the history as being one of those years that I was happy with my BASF investment but given time also this will fade away.

For the report in full please go here and for the latest summary which was the BASF report Q3 2015 then please click on that link and to find out more about The Chemical Company then please visit analysis of BASF 2015 (a new analysis will arrive shortly).

The financial statement bellow is NOT a happy, happy, joy, joy, happy, happy, joy (Ren & Stimpy) reading but this was known. The fourth quarter was additionally bad and well... what to say besides from that the year ended with -5.2% in revenue and with -23%(!) in earnings. I must admit that I am glad that the cost of sales are going down for the chemical companies because this means that BASF are still able to make a profit in the end of the year even though their oil and gas business is pulling them down a little.

BASF, annual, 2015, financial statement, report

BASF is currently changing. They are selling off parts of their business that they have been doing for years and years. This transformation will lead to temporary gains (from the sale) followed by decreased revenue and earnings. The only way to stay alive for 150 years is to keep changing and to move with the times. IBM is currently doing this in a massive scale. Happily for BASF they can do their transformation in small baby-steps.

Conclusion: As I said in the first part this year will not go down as one of the good ones for BASF. The next one will probably not either but it does not matter in the long run. I know that this investment will serve me well for the years to come. I will remain as a shareholder in BASF.

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