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Research Tree offers BASF SE research coverage from 1 professional analysts, and we have 9 reports on our platform.
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|14/10/2016 15:47:00||PR Newswire||BASF set to dazzle with cars, colors and business solutions at SEMA|
|22/06/2016 14:00:00||PR Newswire||BASF and Aspen Aerogels Announce Strategic Partnership|
|02/05/2016 21:31:00||PR Newswire||BASF sells former sterols production plant in Pasadena, Texas to Trecora Resources|
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Lower NWC, lower capex, FCF sustained
27 Oct 16
Q3 sales dropped 20% (v: +4%; p: -5%; FX: -1%; portfolio: -18%) to €14,013m but the gross profit margin strongly improved (31.0% after 26.2%) despite the decline of the numerator. EBITDA went down 15% to €2,437m and net profit attributable to shareholders came in 27% weaker at €888m. Operating CF clearly dropped 25% to €2,501m, facing a significant decline in the positive NWC (€652m after €1,623m), which was partly offset by lower miscellaneous items (€50m after €-465m). Investing CF more than halved (€-788m after €-1,624m) seeing roughly 40% lower capex (€-936m after €-1,542m), a weaker income from divestments (€161m after €242m) and deteriorated financial investments (€-13m after €-324m). The FCF remained fairly unchanged at €1,713m. Financing moved from €-2,471m to €-84m) as changes in net gross debt came down from €-2,372m to €-107m. Management confirmed the 2016 outlook, expecting sales to be considerably below 2015 (due to the divestment and lower oil & gas prices) and EBIT before one-offs to be slightly below the previous year, which is confirmation of what had been given earlier.
12 Oct 16
BASF published preliminary Q3 figures. Sales clearly dropped 20% to €14.0bn and EBIT before one-offs declined 5% to €1.5bn, whereas EBIT (unchanged at €1.5bn) strongly fell by 23%. Management confirmed its outlook for 2016, seeing a considerable sales decline (divesture of gas trading and storage business) and EBIT before one-offs at a level slightly below 2015’s.
Slightly higher volumes, but operating CF suffers
27 Jul 16
Q2 sales clearly droped 24% to €14,483m, but the gross profit margin rose strongly from 26.3% to 32.3%. EBITDA weakened by 7% to €2,790m and net profit attributable to shareholders declined 14% to €1,092m. Operating CF came down 17% to €2,293m, seeing lower NWC inflow (€203m after €568m) due to lower receivables. Investing CF dropped from €-1,829m to €-730m, facing lower capex and a swing in financial investments. Financing CF soared up from €-633m to €-3,811m, primarily from the scaling back of the US dollar commercial paper programme, which had been expanded in the previous year’s quarter. Management confirmed the 2016 outlook, expecting sales to be considerably below 2015 (due to the divestment and the lower oil & gas prices) and EBIT before one-offs to be slightly below the previous year’s.
Q1 figures: a notch weaker than expected, but still OK
29 Apr 16
The negative effects from the asset swap with Gazprom displayed their full impact, but volatile raw material prices made the toppings. Q1 sales clearly dropped by 29% (to €14,208m), of which -22% stemming from divestments and -6% from lower sales prices. By contrast, the gross profit margin developed very positively (32.9% after 26.6%) despite unchanged volumes. EBITDA slightly weakened (-3% to €2,812m) and net profit attributable to shareholders rose +18% to €1,387m. Operating CF was hit by a €1.5bn swing in NWC (€-1,248m after €309m), forced by a seasonal build-up in receivables, whereas funds has been released due to inventory reduction, especially in gas storage, and higher liabilities and provisions in Q1 15 bringing the CF down to €1,046m from €2,390m. Investing CF came in at €-1,258m (€-1,502m) benefiting from lower capex, which was above D/A. Financing CF swung from €-400m to €1,997m primarily due to the higher utilisation of the USD commercial paper programme and the issuance of a €200m euro bond. For FY 2016, management expects sales to be considerably below 2015 (due to the divestment and the lower oil & gas prices) and EBIT before one-offs to be slightly below the previous year, which is confirmation of the previous guidance.
Early steps of the value chain under pressure...
26 Feb 16
... and Oil&Gas put Q4 figures over the edge. Q4 sales clearly dropped 23% (prices: -11%; divestments: -19%) to €13,880m, but the gross profit margin strongly rose from 24.3% to 29.9%. EBITDA significantly declined by 34% to €1,893m and net income attributable to shareholders clearly deteriorated by 78% to €339m. Despite the much weaker operating performance, FY operating CF strongly rose +36% to €9,446m, fuelled by a €2.4bn swing in NWC (€1.0bn after €-1.4bn), stemming from lower inventories and receivables. Investing CF increased +16% to €-5,235m, seeing lower proceeds from the disposal of non-current assets and securities. Financing CF (€-3,673m after €-2,478m) faced a swing from net gross debt proceeds (€288m) to net gross debt repayments (€933m). Management proposes a €0.10 higher dividend (€2.90) per share at the next AGM on 29 April 2016. The expected dividend payment (~€2.9bn) reflects a pay-out ratio of >70%. For FY 2016, management expects sales to be considerably below 2015's (due to divestments and the lower oil & gas prices) and EBIT before one-offs to be slightly below the previous year's.
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Fighting the waves
25 Oct 16
Management action in response to a tough trading climate and falling profits should contribute to a sound recovery in profits next year. Following share price weakness, the group is valued at a substantial discount to both the broking market leader Clarkson and to other peers. Meanwhile, if the dividend can be held, the shares offer a well above-average yield, pending an eventual improvement in trading conditions.
21 Oct 16
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FY17 expectations unchanged. Interim dividend maintained
25 Oct 16
Interims reflect tough markets which impacted Technical. Shipbroking delivered a resilient result and Logistics has performed well. The interim dividend has been held at 9.0p. The group anticipate an improvement in H2. The Board’s expectations for the year are unchanged based upon the strength of the order book due in H2, its ongoing market coverage and the benefits of action taken previously. We have retained our FY2017 PBT forecast of £8.7m and a maintained dividend. We reiterate our Buy and adjust our TP to 450p.
Doing things differently
25 Oct 16
Growing pains have impacted on its operational performance (EBIT margins 5.8% FY15 vs 12.2% FY13) and the HSS Hire valuation is at distressed levels (price to book 0.4x vs 1.3x at the time of the float). As the top-line catches up with the expanded cost base and the roll-out of the NDEC leads to greater efficiencies, margins and returns will rebound. Historical experience has shown that price to book ratios typically match these improvements (see Ashtead FY08-FY15, price to book expanded +196%). Therefore, we see scope for material upside in the share price as the expected operational recovery to progress. Our 12 month target of 115p equates to a 0.8x price to net operating assets
Risks discounted leaving significant upside
18 Oct 16
FY 2016 sales grew strongly at +22% but EPS growth lagged at +3% (our revised forecast -1%) as staff attrition and significant investment in new services held back profitability. Conversion of profit into cash improved significantly, at 240% in H2, as shorter payment terms and a lower level of extensions also benefited. We make no major changes to our forecasts and reiterate our view that Utilitywise is at the forefront of a changing energy market, supported by investment in innovative technology. The current valuation is entirely focused on the short-term challenges and ignores the growth potential supported by the new services.