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Exit expected in 'foreseeable future'
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Drop in Q1 group earnings confirmed
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Keeps outlook despite weak demand
(Adds details, background, Q1 results, outlook)
By Patricia Weiss and Rachel More
BERLIN, April 27 (Reuters) - German chemicals group BASF on Thursday said it was working to exit energy
business Wintershall Dea , with a stock market listing
remaining the preferred option.
CEO Martin Brudermueller also flagged a possible sale of the
oil and gas producer to investors.
"The exit will not take place immediately," Brudermueller
said in a speech to the company's shareholder meeting, adding
that it would require approval from public authorities and joint
venture partners.
"But we are very optimistic that we will be able to execute
this in the foreseeable future," he told the meeting.
BASF has taken a big writedown as Wintershall Dea pulls out
of Russia, where it has various interests, including a stake in
the Nord Stream gas pipelines.
Investment firm LetterOne owns a 27.3% stake in Wintershall
Dea.
Brudermueller said the 6.5 billion euro ($7.18 billion)
writedown on BASF's shareholding in Wintershall Dea led to a
2022 net loss for the company.
"It was very bitter. However, it now opens up a path forward
for us," Brudermueller said of the exit plans.
BASF confirmed its preliminary first-quarter results ahead
of its shareholder meeting, which were initially published
earlier in April.
"BASF started off 2023 better than analysts had expected –
and in a stagnating and difficult economic environment,"
Brudermueller said.
The company confirmed its outlook for 2023, targeting sales
this year in a range of 84-87 billion euros and adjusted EBIT of
4.8-5.4 billion euros.
($1 = 0.9050 euros)
(Reporting by Patricia Weiss, Writing by Rachel More, Editing
by Maria Sheahan and Jane Merriman)
