BASF, Gazprom cancel gas sector asset swap

Frankfurt

GERMANY'S BASF SE and Russia's Gazprom agreed to cancel a swap of gas sector assets planned for this year, citing a "currently difficult political environment".

The unwinding of the deal weakened BASF's outlook for earnings before interest and tax (Ebit) this year and added to expenses for 2013 and 2014, BASF said in a statement on Thursday. "In light of this (cancellation), the outlook for the current year of achieving an Ebit before special items that is slightly higher than the previous year still appears to be reachable," BASF said. "Ebit will likely slightly increase; previously, a considerable rise in Ebit was expected due to the special income from the divestitures of the gas trading and storage business," BASF added.