(new: shares turn positive, background, analysts' opinions)

FRANKFURT (dpa-AFX) - A surprising billion-dollar loss only briefly unsettled BASF 's investors, who have been spoiled this year. They were reassured by the fact that the loss is unlikely to affect dividend payments. Shares in the Ludwigshafen-based chemical company made up for initial losses of more than two percent on Wednesday and were trading little changed at 52.79 euros at midday. Germany's leading index, the Dax, also barely budged.

The reason for BASF's billion-euro loss last year is the withdrawal of its subsidiary Wintershall Dea from Russia and the associated high write-down. The subsidiary is complaining about a de facto expropriation of its holdings there in Russia. It is reportedly planning a complete withdrawal from the country in compliance with legal requirements.

However, burdens had already become apparent as a result of the Russian war of aggression on Ukraine and the subsequent sharp rise in energy prices, especially in Europe. The Group's top management around CEO Martin Brudermüller had therefore already announced an austerity program.

In day-to-day business, things were also rather bleak for BASF 2022. In the preliminary business figures presented on the previous evening, however, there was also good news, wrote Jürgen Molnar, capital market strategist at the trading house Robomarkets. Thus, the chemical group was able to pass on the higher costs to customers and thus maintain profitability.

Stock market participants reacted rather calmly to the bottom line. The high write-offs were actually an open secret, said one trader. And the analyst David Varga from Bankhaus Metzler can even see the positive side of the Wintershall write-offs in relation to Russia. Because these would restore the flexibility of the division and thus pave the way for the IPO of the business unit.

Moreover, since write-downs are non-cash expenses, experts do not see any danger for BASF's dividend payments for the time being. The Ludwigshafen-based company's dividend payments are typically determined by free cash inflows, noted analyst Georgina Fraser of U.S. investment bank Goldman Sachs. BASF had paid out 3.40 euros per share for 2021. Analysts currently expect the DAX-listed company to distribute the same amount to investors for 2022.

Analyst Chetan Udeshi of U.S. bank JPMorgan wrote that the chemical company's adjusted operating profit in the final quarter of 2022 missed his and the market's expectations. But he said BASF shares were attractively valued and one of the most promising bets on an economic recovery supported by China's reopening starting in the second quarter.

The chemical industry had to struggle last year, especially with the sharp rise in gas prices. However, because the price of gas has recently fallen again significantly, BASF's share price has also benefited. In the still young stock market year 2023 alone, the shares have currently gained almost 14 percent. The Dax rose by 9 percent in the same period.

Thanks to the strong start to the year, the technical picture for BASF shares is currently brighter. In particular, the shares are trading comfortably above the much observed 200-day average line, which is a measure of the long-term price trend. But also in the short and medium term, the trends are pointing upward./la/ajx/jha/