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BASF (A3/A-): 1Q24 Results

BASIC INDUSTRIES

Largely neutral for spreads. Looks positive at the margin but the market will need to see a turn in the chemicals market to rerate the credit.


• Revenue missed expectations by 5%, but adj. EBITDA beat by 6% driven mainly by lower COGS.

• FCF was slightly better than expected at -€1.5bn (c. -€1.8bn) despite CFO miss; driven by lower-than-expected capex. This is the normal seasonal pattern for BASF. Net debt is left at €18.2bn vs FY24 EBITDA expectations of ~€8.3bn.

• FY FCF guidance was affirmed, adj. EBITDA forecast is in line with consensus.

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