|Bid||63.77 x 139300|
|Ask||63.78 x 16500|
|Day's Range||63.41 - 64.31|
|52 Week Range||55.64 - 81.77|
|Beta (3Y Monthly)||1.00|
|PE Ratio (TTM)||6.24|
|Earnings Date||Oct 24, 2019|
|Forward Dividend & Yield||3.20 (5.00%)|
|1y Target Est||N/A|
Moody's Investors Service ("Moody's") has today assigned a Baa2 instrument rating to the senior unsecured notes ("notes") to be issued by Wintershall Dea Finance B.V. for the sole purpose of financing a loan to Wintershall Dea GmbH ("Wintershall Dea"). The notes will be issued by Wintershall Dea Finance B.V., a company incorporated under the law of the Netherlands fully owned by Wintershall Dea. The proceeds will be used to refinance Wintershall Dea's EUR 3,700 million senior unsecured bridge facility due in May 2020.
Moody's Japan K.K. has downgraded the issuer rating of DIC Corporation to Baa3 from Baa2. "The downgrade is principally driven by the continuing weakness in DIC's core businesses, as indicated in the company revising down its estimate for fiscal 2019 earnings, which make it unlikely that the company will be able to reduce its leverage to levels we had previously expected," says Moody's Analyst Yukiko Asanuma. "Furthermore, DIC's planned acquisition of BASF's pigment business will entail debt financing that will likely keep leverage elevated for a few years," adds Asanuma.
** Germany's BASF said it agreed to sell its global pigments business to Japanese fine chemical company DIC for 1.15 billion euros ($1.28 billion) on a cash and debt-free basis. ** Apollo Global Management and Athene Holding said they would buy PK AirFinance, an aircraft lending business that is a part of GE Capital's aviation services unit for an undisclosed amount. ** Canadian tour operator Transat A.T. Inc said on Thursday that the Superior Court of Quebec had approved its sale to Air Canada in a C$720 million ($542.37 million) deal.
(Bloomberg) -- Japanese chemical maker DIC Corp. agreed to buy BASF SE’s pigments business for 985 million euros ($1.1 billion) as it pushes further into providing materials for end-products such as displays, cosmetics, and automobiles.The Japanese printing ink company plans to close the deal by the end of 2020, subject to regulatory approval, it said in a statement Thursday.Bloomberg News reported earlier this month that BASF was exploring a sale to DIC. BASF opted to pursue negotiations ahead of a planned auction of the business later this year, people familiar with the matter had said.Reaching a deal with DIC means Ludwigshafen, Germany-based BASF can avoid the vagaries of a wider sale process at a time when chemical markets are deteriorating. BASF, hit by the trade war between the U.S. and China and declines in the auto sector, has warned group earnings this year could drop by 30%. BASF’s colors and effects business had net sales of 992 million euros in 2018.That’s spurring BASF Chief Executive Officer Martin Brudermueller to accelerate an overhaul that includes the planned sale of the company’s construction-chemicals business. That unit could fetch more than 3 billion euros, people familiar with the auction have said.DIC Chief Financial Officer Masayuki Saito said in a June interview with the Nikkei newspaper that he’s considering deploying the firm’s 250 billion-yen strategic investment reserve for large acquisitions. BASF’s pigments unit, which supplies tints and colors for paints and plastics, has had to grapple in recent years with increased competition from Asian suppliers.\--With assistance from Myriam Balezou.To contact the reporters on this story: Jeff Sutherland in Tokyo at firstname.lastname@example.org;Andrew Noël in London at email@example.comTo contact the editors responsible for this story: Rachel Chang at firstname.lastname@example.org, Reed StevensonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg Opinion) -- Time was when geopolitical tensions in the Middle East would light a fire under oil prices, even if they didn’t immediately affect prospects for supply. Now, it’s threats to demand that send shock waves through oil markets. And there may be more of those to come.A spate of tanker attacks, drone downings and saber rattling around the Strait of Hormuz has had little impact on oil prices. Perhaps oil traders don’t believe that the world’s most important oil chokepoint will really be closed to tanker traffic – a sentiment I share. The seizure of the tanker Stena Impero is a particularly British problem and we are unlikely to see a growing fleet of foreign ships impounded off Iran. While the harassment of vessels using the waterway may continue, more serious escalation is unlikely – at least without further provocation.In contrast, a tweet from President Donald Trump that he would impose “a small additional Tariff of 10% on the remaining 300 Billion Dollars of goods and products coming from China” was enough to send oil prices into a tailspin. U.S. benchmark West Texas Intermediate crude fell by as much as 4% in the 15 minutes after the tweet and ended the day down almost 8%.Those additional tariffs and the ones already imposed are creating headwinds for 100 million barrels a day of global oil demand. That’s a much bigger worry than threats to disrupt crude flows through the Strait of Hormuz, which are around a tenth of that volume, according to tanker tracking data compiled by Bloomberg.The International Energy Agency, whose forecasts are closely watched by oil traders and analysts, has been slashing its oil demand growth estimates for the first half of 2019. At the beginning of the year, the agency saw pretty consistent growth at a little over 1.4 million barrels a day, with the first half looking slightly stronger than the second. Over the next six months that picture changed dramatically. Estimates of demand growth for the now-finished first half of the year have been cut to just 560,000 barrels a day, while the forecast for the second half has surged to almost 1.8 million. The IEA points to “expected stronger economic growth in the OECD” and the fact that oil prices are lower than they were a year ago to support its stronger second-half forecast. But that is unlikely to last.Crude oil prices may indeed be lower than they were last year, but that’s not much help to motorists in Europe. Weaker currencies and inflexible taxes on gasoline mean that the prices drivers are paying at the pump are within a whisker of where they were last year. That’s not going to stimulate much new demand. Pump prices in the U.S. are only around 10 cents a gallon lower than a year ago and gasoline demand is running below last year’s level, according to data from the U.S. Energy Information Administration.The July report also notes that “the forecast assumes that the trade standoff between China and the U.S. does not deteriorate over the coming months.” It just got a whole lot worse.One area where demand has been strong is petrochemicals, a segment of the oil market that is seen as a key driver of growth in the years ahead now that the transport sector faces headwinds from electric vehicles and ride-sharing. But here too there are worrying signs. BASF SE, the world’s largest chemical company, issued a profit warning last month, while Royal Dutch Shell CEO Ben van Beurden noted a “synchronized recession” in petrochemicals leading to “massive destocking” in the supply chain. That’s not going to help demand in the coming months.It may be too soon to expect a big cut in the demand growth forecast in the IEA’s next report, due Friday, but it will almost certainly come in due course – unless political leaders in Washington or Beijing blink, which seems unlikely.While the world’s oil producers continue to struggle with over-supply, any signs of demand weakness are going to have a disproportionate impact on prices.To contact the author of this story: Julian Lee at email@example.comTo contact the editor responsible for this story: Stephanie Baker at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Julian Lee is an oil strategist for Bloomberg. Previously he worked as a senior analyst at the Centre for Global Energy Studies.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
The European Commission defended on Friday a new European Union natural gas law, which has been challenged by the Russian-led Nord Stream 2 pipeline, saying it is in line with the bloc's agreements abroad. "The EU now has clear rules that apply to all pipelines used to import gas into the European market," a Commission spokeswoman said. "The Commission considers that directive 2019/692 is fully compatible with the EU's international obligations," the spokeswoman said.
German blue-chip companies BASF, Siemens, Henkel along with a host of others said on Wednesday they had been victims of cyber attacks, confirming a German media report which said the likely culprit was a state-backed Chinese group. Alongside the German firms named, companies including drug maker Roche, hotels group Marriott, airline Lion Air, conglomerate Sumitomo, and chemicals group Shin-Etsu were also targeted by the hackers, ARD reported. Industrial conglomerate Siemens, shampoo maker Henkel and Swiss pharma group Roche confirmed that they were affected by "Winnti", while BASF and Covestro also confirmed that they have been attacked.
(Bloomberg) -- Royal Philips NV, the Dutch maker of goods ranging from medical scanners to electric toothbrushes, is shifting production to China and strengthening local supply chains as an antidote to the trade war with the U.S.With double-digit growth in China in the second quarter, the company can’t afford to miss out on state investment in the latest diagnostic equipment as well as orders from an emerging private health-care industry.Philips is bracing for an additional 20 million-euro ($22 million) burden when the next batch of announced tariffs come into force, spurring Chief Executive Officer Frans van Houten to redraw the company’s global footprint. The company had produced all its respiratory masks in China, for example, but will soon begin making them in the Americas as well. Likewise, it will produce more ultrasound equipment in China to meet demand there, sidestepping tariffs.“We are moving towards a regional manufacturing hub strategy as we manufacture in each of these large continents, making us more responsive than we might have been before,” Van Houten said in a Bloomberg Television interview.Van Houten is keen to contain the fallout from the trade war that’s hit a cross-section of industries from cars to chemicals. BASF SE’s profit warning earlier this month highlighted how intricate global supply chains are being disrupted. The Philips CEO signaled that the China-U.S. situation remains at the top of his concerns for this year, yet he still predicted a stronger second half.The Amsterdam-based company hit the top end of its sales growth target range of 6% in the second quarter, it said Monday, beating analysts’ estimates.The shares rose 5.5% to an 18-year high. They have climbed 33% this year, while rival Siemens Healthineers is little changed as it struggled with its blood-testing platform Atellica.Tariffs are affecting a broad range of Philips’ products that flow between China and the U.S., while factories and assembly lines must also contend with duties on many components, Van Houten said.The CEO is betting the trade workaround, investment in innovation and an efficiency drive will see the company through any economic slowdown. New products are reinvigorating Philips’s Personal Health unit, which makes electric toothbrushes, shavers and equipment to help with sleep and respiratory disorders. Sales at the segment grew by 5%.\--With assistance from Nejra Cehic and Manus Cranny.To contact the reporter on this story: Ellen Proper in Amsterdam at email@example.comTo contact the editors responsible for this story: Tara Patel at firstname.lastname@example.org, Andrew Noël, Frank ConnellyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
In an interview with a consortium of European newspapers, including Germany's Sueddeutsche Zeitung, Ursula von der Leyen said the European Union would first wait for a new British prime minister to be chosen and then seek talks. "We don't want a hard Brexit.
Moody's Investors Service ("Moody's") has today placed the A1 senior unsecured notes ratings and (P)A1 senior unsecured MTN programme rating of BASF (SE) (BASF or "the company") and its guaranteed subsidiary BASF Finance Europe NV on review for downgrade. It has also placed under review for downgrade the A1 unsecured rating of revenue bonds guaranteed by BASF.
(Bloomberg Opinion) -- Corporate bellwethers aren’t an infallible guide to the state of the global economy, but we still need to pay attention to what these canaries in the business coalmine are telling us. Monday night’s profit warning from Germany’s BASF SE, the world’s largest chemical company, is alarming on two counts.First, it shows that industrial demand remains very weak. That might mean we’re much nearer to the end of this long economic upswing than record-breaking stock markets would have you think. Second, extreme weather – in this case the torrential rains that have disrupted the U.S. growing season and hurt demand for crop chemicals – is adding to the pain for big companies. Our changing climate is starting to take a toll on profit.BASF’s shares tumbled almost 6 percent on Tuesday, dragging down chemical stocks and spreading unease in the financial markets. Indeed, the chemicals group is hardly alone in its gloominess. In logistics, FedEx Corp. and the shipping giant AP Moller-Maersk A/S have sounded worried about global trade lately, while the ball-bearings maker Schaeffler AG says the coming months will be tough for the car sector. ArcelorMittal’s steel production cuts in Europe aren’t encouraging either. No wonder sentiment is so febrile.After a difficult 2018, BASF had been fairly optimistic about 2019. Not any more. Now it expects sales to decline slightly this year, while operating profit could fall by as much as 30 percent.Investors were anticipating a poor second quarter – the hedge fund Marshall Wace even built up a big short position – but BASF’s guidance cut suggests this will be more than a brief dip.The company is doing what it can to support its earnings and balance sheet. It is cutting 6,000 jobs and has put its construction chemicals division up for sale. Until industrial demand recovers, though, investors will question its ability to generate enough cash to sustain its shareholder payouts. BASF is committed to increasing its dividend every year, but the rather high 5.4% yield (the last dividend divided by the share price) shows the doubts in the market.Most investors will focus on the comments about the global economy, but the warning about extreme weather is equally unnerving. Last year, low water levels on the Rhine reduced BASF’s profit by 250 million euros. This year, the company is struggling because heavy rainfall across the American Midwest has severely hampered the planting of important crops, and hence reduced demand for chemical crop protection products.The 12 months to May this year were the wettest in the U.S. since records began in 1895. With hotter temperatures, evaporation and the water-holding capacity of the air increases so there’s more heavy rain in some places. A rapidly warming climate and rapidly cooling economy should make investors feel very queasy.To contact the author of this story: Chris Bryant at email@example.comTo contact the editor responsible for this story: James Boxell at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Bryant is a Bloomberg Opinion columnist covering industrial companies. He previously worked for the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
European shares fell on Tuesday as a profit warning from chemicals giant BASF led to a slide in German shares, which were on course to post their biggest drop in two months. The pan-European STOXX 600 index fell 0.7% by 0815 GMT, in line with its Asian peers and Wall Street overnight amid dimming hopes of a sharp interest rate cut by the U.S. Federal Reserve later this month.
BASF shares traded sharply lower in Frankfurt Tuesday after the global chemicals group issued a significant full-year profit warning it said was linked to the U.S.-China trade dispute.