BASF Highly Exposed to Russia by Gazprom: Lambert

Your next video will start in

Recommended Videos

  • Info

  • Comments


July 24 (Bloomberg) -- Nomura’s Patrick Lambert examines BASF’s exposure to Russia from its oil and gas business and how increasing sanctions against Russia may affect the company’s bottom line. He speaks on “The Pulse.”

Patrick lambert covers the stock.

In terms of putting basf's relationship with russia into context, how does it compare with other companies?

It's important.

Typically the european center has safe exposure sending products to the russian market, 2%. very little.

For basf, it's 20% of net income.

A significant -0- - the oil and gas business is 20%> . where shall we be in terms of value and production?

It's important.

How exposed to think the company is?

You've laid out the numbers.

We do not understand the geopolitics.

Gazprom is being left of every list because of his significance to western europe.

But life is becoming harder for gazprom and russia.


getting deals done things are slowing down in the south sea pipeline.

We will see how it is -- how it evolves.

So far we have not seen anything.

The deal has been set up.

Tiit's sa swap.

There is no impact today.

The impact on financials.

Worst-case scenario, we go back to thwhere we were in 2012. and nothing too much in terms of valuations.

Those of the specifics relating to basf.

In terms of feedstock, how importance russia in terms of basf?

I think from what i've read, germany imports 15% of their gas from russia.

Basf is the same.

Is using gazprom source gas at 50%> so it is important.

They are winning.

The energy.

But it is not just basf.

If you put that into the context of europe, we are seeing the first energy and feedstock going down in north america.

We see china going down on coal.

And europeans in between.

Your expectation would be that those costs would rise?

It is going to get more expensive.

That would put all chemical assets under pressure.

If you were sitting in russia thinking about where you would position your business, which is to be thinking about europe or opening new plants in the south of am erica?

We would see us going elsewhere.

Germany is very important for basf.

50% of our assets based t here.

This russia story, if we were to have to have substitution, would only accelerate that?

In terms of what that means for european business, is it in any way able to quantify what the competitive disadvantage is?

But i'm not sure net gas tells the full story.

It is always very complicated.

Basf system a good job moving down as much as possible in germany to mitigate some of the early stages -- but typically there is $300 -- short.

But he sounds confident.

He sounds he is ok with the story.

He's ok with rurssia.

But long-term, this is a big concern for his business.

I think long term, i think europe will have to find solutions.

To get other sources of gas.

The u.s. has already opened a line.

We are going to export more.

Everyone talks about iran.

This text has been automatically generated. It may not be 100% accurate.


BTV Channel Finder


ZIP is required for U.S. locations

Bloomberg Television in   change