Abstract
Deteriorating economic conditions in Europe, particularly Germany, will adversely impact BASF third-quarter results and are prompting the world’s largest chemical company to execute a nearly $500 million cost-cutting program. Russia’s invasion of Ukraine has roiled European energy markets. As Western Europe’s support for Ukraine in the conflict has grown, Russia has tightened the spigot of natural gas that Europe depends on. Supplies are down 50% so far this year and could go even lower. Natural gas prices in Europe are nearly double what they were at the beginning of 2022. Some chemical plants that rely on the gas as energy and raw material are running at 40–50% of capacity, according to the consulting firm Wood Mackenzie . BASF released preliminary figures showing that its third-quarter sales held up in this environment, rising 12% compared with the same period in 2021. The increase was due to higher selling prices for its
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