Low commodity prices during the coronavirus pandemic weighed on BASF's earnings last year, but the German group recorded a rapid recovery so far in 2021 as the global economy picked up faster than expected.
"We recorded strong demand growth across all regions, especially Asia - without China - and Europe," BASF's Chief Executive Martin Brudermueller told journalists in a conference call.
When asked about the sustainability of BASF's progress at a time when the more contagious Delta coronavirus variant could hamper the global economic recovery from the COVID-19 crisis, Brudermueller said he did not expect a second large-scale lockdown.
"People around the world have learnt to combine business activity with a difficult economic environment. Everyone has also learnt a thing or two about how to manage a pandemic outbreak," he said.
Brudermueller added it was difficult to plan for more than two to three months ahead, but BASF's recovery - as seen in its order intakes - has been continuous so far.
Asked about the exact timing of the sale of BASF's oil and gas subsidiary Wintershall Dea, finance chief Hans-Ulrich Engel confirmed it will happen "after 2021."
"We are determined to divest Wintershall, but don't want to commit to a particular date," he said.
The German group reported a second-quarter net income of 1.7 billion euros ($2.01 billion), above the 1.4 billion euros expected on average by analysts in a company-provided poll, as it confirmed the preliminary quarterly core earnings and sales and 2021 guidance it announced on July 9.
($1 = 0.8463 euros)
(Reporting by Zuzanna Szymanska in Gdansk; Editing by Jacqueline Wong and Tomasz Janowski)
By Zuzanna Szymanska