BASF at the turning point: New strategy and dividend are causing a sensation!
BASF at the turning point: New strategy and dividend are causing a sensation!
Ludwigshafen, Deutschland - BASF held his digital general meeting and received positive feedback from the shareholders. New CEO Markus Kamieth emphasized that the company was facing a turning point. Despite the announcement of a dividend reduction in autumn, which reduces the distribution of 3.40 euros to at least 2.25 euros per share, the shareholders praised the management for its adaptability and its new team spirit. FAZ reports that BASF faces challenges, such as customs problems that dropped the share price after a short increase.
The new corporate strategy aims to separate from marginal transactions and concentrate on the core business. Parts of the portfolio, which represent sales of around 25 billion euros, are to be managed independently in the future. In particular, the crop protection division, which generates 10 billion euros in sales, will be brought to the stock exchange by 2027, while the coating division, which is 4.3 billion euros in turnover, is to be sold or transferred to a joint venture.
reorientation and strategy
At the Capital Markets Day in Ludwigshafen, BASF presented a comprehensive strategy. Dr. Markus Kamieth announced that the company wanted to be the preferred chemical company for the green transformation of its customers. According to a Press release from BASF , the focus is also on the profitable increase in growth and strengthening the core business. In order to meet this new orientation, BASF will invest in the independence of certain business areas and check strategic options.
The CFO Dr. Dirk Elvermann stated that BASF would concentrate on the generation of Cashflow and reduce the investment expenses. The planned total distributions to the shareholders of at least 12 billion euros between 2025 and 2028, supplemented by stock returns of around 4 billion euros from 2027, illustrate this careful procedure. In addition, an expected EBITDA is sought before special influences of 10 to 12 billion euros in 2028.
focus on sustainability
BASF pursues a clear course in the direction of sustainability. Netto-zero greenhouse gas emissions are to be reached by 2050, and by 2030 the company is aiming to reduce the SCOPE-1 and SCOPE-2 emissions by 25 percent. This is supported by existing thousands of products with a reduced or net zero CO2 footprint. In a further notification it is emphasized that the adjustments to the production facilities in Ludwigshafen are necessary due to competitiveness. Competitiveness analyzes show that 20% of the systems in Ludwigshafen are at risk without adjustments at their location.
In summary, BASF shows with its new “Winning Ways” strategy that the company is aiming for targeted and profitable growth, but does not do not need to adapt to current market conditions. The focus on core business, the development of new partnerships and the focus on sustainable products underpins the position of BASF as an important player in the chemical industry, especially with regard to the challenges and opportunities in Asia and beyond.| Details | |
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| Ort | Ludwigshafen, Deutschland |
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