BASF-Wintershall Profits Improve

German chemicals giant BASF increased its 1Q profits from its oil and gas (Wintershall) division threefold to €140mn, from just €47mn in 1Q2016, thanks to higher prices for both commodities. 

Oil and gas production volumes matched, while those of sales gas exceeded, their 1Q2016 levels according to BASF on April 27. 

The division helped BASF to boost group 1Q net profits to €1.71bn, a year on year increase of 23%.

Among significant events, BASF noted the Apr.24 signature by Wintershall, along with four other EU-domiciled gas companies, of the financing agreement for the Gazprom-led Nord Stream 2 project.

Not cited by BASF was the April 27 announcement by France's Total to invest in an expected $1.2bn phase 1 development (Total share: $500mn) of an Argentina shale gas development in which Wintershall is currently a partner. The German firm has been present upstream in Argentina since 1976.

Wintershall in mid-April started first production from its Ravn oilfield offshore Denmark.

Photo credit: BASF Capital Markets presentation April 27 2017

Mark Smedley