BASF (BASFn) on Wednesday revised up its full-year revenue forecast, as it still passed on higher raw material and energy prices to clients.
The company now expects full-year sales within the range of EUR 86 billion to EUR 89 billion, compared with a prior forecast of EUR 74 billion to EUR 77 billion.
“Current developments, mainly driven by the war in Ukraine and its impact on energy and raw materials prices and the availability of raw materials, especially in Europe, may lead to additional headwinds, deviating from the assumptions,” the German group said in a statement.
BASF signaled a risk of production outages at its European sites, because of additional restrictions to Russian gas supplies for Europe.
Still, such a risk could be partially offset by higher capacity utilization at BASF facilities in other parts of the globe.
Meanwhile, the chemicals maker now expects full-year adjusted earnings before interest and tax (EBIT) within the range of EUR 6.8 billion to EUR 7.2 billion, as it raised the lower bound of the target range from EUR 6.6 billion, forecast previously.
In 2021, the German company reported EUR 7.8 billion in adjusted EBIT.
As of 10:03 GMT on Wednesday the shares of BASF SE were retreating 1.05% (EUR 0.445) to trade at EUR 41.740 on XETRA, while extending the loss from the prior trading session.