NEWS
Oil   Gas  

Wintershall IPO likely in H2 2020, BASF says

A merger between BASF's oil and gas unit Wintershall and DEA, agreed in September, is expected to conclude in 2019 with an eventual initial public offering set to take place in the second half of 2020, BASF CEO Martin Brudermuller said Friday.

Company sees 2020 start-up for Finnish EV battery site

Rhine levels hampering industrial production at Ludwigshafen

The merger should create Eur200 million (about $227 million) per year in synergies, he added.

As a result of the merger, the subsidiary's operations would be classified as discontinued operations and not included in BASF's quarterly reporting he noted.

In September 27, 2018, BASF signed a transaction agreement with LetterOne to merge their respective oil and gas businesses, Wintershall and DEA, into a joint venture.

It will operate under the name Wintershall DEA. The merger will create the leading Germany-based independent company in the European oil and gas sector, with plans to increase its daily worldwide production from the current total of around 575,000 b/d of oil equivalent to 800,000 boe/d over the next three to five years. Around a quarter of the production would come from Norway.

In the electric power sector, BASF also elaborated Friday on plans to start up a new battery site for electric vehicles in Finland by late 2020.

The plant, at Harjavalta, will be able to supply batteries for 300,000 electric vehciles per year, with a deal signed with the nearby metal refinery owned by Nornickel, which will supply raw materials nickel and cobalt to the new plant, according to the company.

BASF has revised down its forecast for industrial production for the full year to 3.1% growth from 3.2% growth, amid a slowdown in the auto industry, which is a main consumer of its chemicals and other products.

"The introduction of new emission standards had an impact in Europe. The effects of the trade conflict between the United States and China are also showing. This is leading to a slowdown in economic growth in Asia in particular, mainly in China," the company noted.

Besides demand, supply from the Ludwigshafen chemical and manufacturing hub has been impacted in recent months due to record low levels of the river Rhine and the "severe" impact is seen continuing into next month, Brudermuller said.

"The cracker at Ludwigshafen is currently running at 60%," Brudermuller told analysts on a conference call Friday.

This decline would translate to lower energy demand in terms of gas and power into the affected plants.

Energy-industries represent around one fourth of Germany's final energy demand, according to industry association Verband der Chemischen Industrie.

News No: 2451
Date: 2018/10/26 - 16:54
News Source: S & P Global Platts

BASF  Wintershall DEA  Nornickel  Ludwigshafen  Germany 

Comments:

Leave a Comment:

   
   
   
 

Bacanora Lithium extends footprint in Germany with new licence

Exploration and development company Bacanora Lithium (LON:BCN) is expanding its footprint in Germany after securing another five-year exploration licence this week in the Erzgebirge (meaning Ore Mountain) region of Saxony, Germany.
 

Germany Oil, Gas Output Falls 3 Percent

Germany produced 10.3 million tons of oil and 26.1 billion cubic meters of gas in 2018, both down 3% year-on-year, industry association BVEG data showed on Tuesday.
 

Czech Republic: Ferrous Scrap Exports Stable in 2018

Czech Republic - one of the major scrap exporters among Eu-28 witnessed stability in scrap exports in CY18 as compared with CY17. As per recent customs data, Czech Republic exported 2,126,655 MT ferrous scrap in CY18, stable Y-o-Y against 2,125,474 MT in CY17.
 

Junkyard palladium growing as an answer to disappearing resource

Junkyard palladium is quickly becoming a growth market as mined supplies of the silvery-white metal used to control harmful auto emissions run increasingly short.
 

China atop Iran’s Trade Partners

China, the UAE, Turkey, Germany and India are the top exporters of goods to Iran, supplying more than 57% of the country's imports, according to the data released by the Islamic Republic of Iran Customs Administration.
 

KRÄMER+GREBE produces the best trainee in Germany

Since the company was founded, attracting the next generation of skilled workers through comprehensive training has been key for the manufacturer of moulds and tools, Krämer+Grebe in Wallau, Germany. For many decades now, the high training rate has been the company’s tradition and guarantee for success.
Upcoming Events
Publications
 Mines & Metals

Mine & Business Today

 Scrap & Recycling

Ahangan

Our partners