Chemical company BASF may no longer be able to pay out as many dividends as in previous years. The DAX Group announced in Ludwigshafen that the direct profit share should amount to at least 2.25 euros per share in the coming years. For 2023, BASF is paying 3.40 euros per share. The minimum dividend announced is well below expert expectations.
BASF suffers from cost pressures and high energy prices
The annual dividend amount in the coming years will be around two billion euros, he said. Between 2025 and 2028, a total of around eight billion dividends will be distributed. This will be supplemented by share buybacks. This amount is targeted for 2027 at the latest and is estimated at around four billion euros.
BASF is suffering from cost pressures and high energy prices. As a consequence, the DAX group launched another multi-billion dollar austerity program in February, including layoffs and plant closures. In order to increase profitability, the main plant in Ludwigshafen in particular will be repositioned as the group’s largest production site. According to the latest austerity program, an additional one billion euros will be saved annually by the end of 2026. It is still unclear how many jobs will be lost in Ludwigshafen.
