OREANDA-NEWS. In the second quarter of 2016, BASF saw a slight improvement in the macroeconomic environment. The increase in oil price and pickup in demand since the end of March underline this development. “We experienced robust demand, especially from the automotive and construction industries. However, the macroeconomic situation remains difficult to predict,” said Dr. Kurt Bock, Chairman of the Board of Executive Directors of BASF SE.

Sales of BASF Group decreased by 24% in the second quarter to €14.5 billion compared with the same period of 2015. Two-thirds of this decline were the result of portfolio effects (minus 16%). These were mainly due to the divestiture of the gas trading and storage business as part of the asset swap with Gazprom at the end of September 2015. In addition, lower raw material prices, especially in the Chemicals segment, led to a drop in sales prices (minus 7%). Except for Agricultural Solutions, all segments contributed to the slight increase in sales volumes (plus 2%). In the chemicals business, which comprises the Chemicals, Performance Products and Functional Materials & Solutions segments, volumes rose 4%. There were negative currency effects in all divisions (minus 3%).

In the second quarter, income from operations (EBIT) before special items declined by €336 million to €1.7 billion compared with the strong prior-year quarter. Significantly higher earnings in the chemicals business could not compensate for substantially lower contributions from the Oil & Gas segment. Compared with the previous second quarter, EBIT was down by €321 million to €1.7 billion.

Net income decreased by €173 million to €1.1 billion. Earnings per share were €1.19 in the second quarter of 2016, compared with €1.38 in the same period of 2015. Adjusted for special items and amortization of intangible assets, earnings per share amounted to €1.30 (second quarter of 2015: €1.49).