BERLIN, April 11 (Reuters) - German chemicals group BASF reported an unexpected drop in net income in the first quarter due to impairments at its oil and gas unit that co-financed the abandoned Nord Stream 2 project.
Germany has suspended the Nord Stream 2 gas pipeline project in the Baltic Sea. The project aims to double the flow of natural gas delivered directly to Germany.
BASF said its preliminary first-quarter net profit fell to 1.22 billion euros ($1.33 billion) as it included an impairment charge of about 1.1 billion euros recognized by its oil and gas subsidiary Wintershall Dea.
Other financiers of Nord Stream 2 have also announced write-downs, while French utility Engie said its credit risk exposure to Nord Stream 2 was as high as 987 million euros.
BASF reported a net profit of 17.2 euros in the first three months of 2021, and analysts expect a net profit of 1.77 billion euros in the same period in 2022, according to a Vara Research poll.