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BASF 4Q23:

BASIC INDUSTRIES
  • Nothing great here for credit, but spreads probably not impacted.
  • Results missed on revenue, EBIT and EPS; EBITDA came in-line. Guidance for this year is slightly ahead of consensus, with cost savings in play. However peak capex will drag on FCF.
  • Revenue -6% vs estimates, -18% YoY. Adj. EBITDA missed by -9%, -35% YoY.
  • FCF -14% YoY, ND/EBITDA improved to 2.2x from 2.5x at Q3.
  • 2024 guidance: slightly better than expected EBITDA, with €1bn cost savings planned by 2026. Capex will consume the majority of OCF for 2024, before declining in future years.

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