BASF To Slash Costs In Europe, Takes Writedown On Nord Stream 1

German chemicals group BASF said it would slash annual costs by 500 million euros ($485 million) in Europe until 2024 and look into restructuring its chemical sites in the region over the longer term after it was hit by high energy prices.

It cited significantly weaker earnings in Europe due to "deteriorating framework conditions" and a loss in Germany in the third quarter.

In an unscheduled statement, BASF also said its third-quarter net income was below market expectations due to a 740 million euro writedown linked to the Nord Stream 1 gas pipeline.

Quarterly net income was 909 million euros, down from 1.25 billion euros a year earlier and considerably below the average analyst estimate of 1.105 billion,

Net income was dragged lower by impairments of about 740 million euros on the shareholding in oil and gas business Wintershall Dea due to a partial write-down of Wintershall Dea's participation in the operator of the Nord Stream 1 pipeline, BASF added.

BASF, which is due to publish detailed results on Oct. 26, said global third-quarter sales and operating income before special items came in slightly higher than analysts had expected, buoyed by a strong U.S. dollar.

($1 = 1.0320 euros)