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BASF (BASFY) to Expand Basoflux Production Capacity in Tarragona

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BASF SE (BASFY - Free Report) is set to expand the global production capacity of its Basoflux range of paraffin inhibitors at its Tarragona, Spain site. This investment will allow BASF’s Oilfield Chemicals business to meet the growing demand for innovative paraffin inhibitors in the Oil & Gas industry.

The additional production assets will improve efficiencies and flexibility, particularly in the production of new solutions such as more sustainable aqueous-based dispersion paraffin inhibitors and solvent-based products. This expansion will also enable BASF to respond to market changes, with first customer deliveries anticipated in early 2025.

Through ongoing innovation and investment, BASF strengthens its position as a leading player in the paraffin inhibitors market. The company is effectively meeting a significant market demand with its innovative aqueous-based dispersion paraffin inhibitors. Basoflux products are known for their high performance and robust reliability, gaining customer trust even in the most demanding environments.

BASF SE Price and Consensus

 

BASF SE Price and Consensus

BASF SE price-consensus-chart | BASF SE Quote

 

As the demand for crude oil persists and 'easy oil' sources are depleted, the production of more 'challenging oil' will increase. This scenario necessitates the production of more paraffinic crudes, which requires more effective chemistries to optimize oil flow. BASF collaborates with its customers to develop fit-for-purpose (F4P) chemistries that enhance oil production efficiency.

The new Basoflux dispersions from BASF’s Tarragona site will help customers become more sustainable by reducing solvent usage at lower temperatures. This will result in cost savings and increased resource efficiency as less product is required overall.

In the past year, BASF’s shares have gained 4.3% compared with the industry’s 2.5% rise in the same period.

Zacks Investment Research
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Zacks Rank & Key Picks

BASF currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Basic Materials space are ATI Inc. (ATI - Free Report) and Carpenter Technology Corporation (CRS - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) and Ecolab Inc. (ECL - Free Report) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

ATI’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 8.34%. The company’s shares have soared 72.6% in the past year.

CRS’ earnings beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, with the average earnings surprise being 15.1%. The company’s shares have soared 130.8%% in the past year.

The Zacks Consensus Estimate for Ecolab's current year earnings is pegged at $6.59 per share, indicating a year-over-year rise of 26.5%. The Zacks Consensus Estimate for ECL’s current-year earnings has been going up in the past 30 days. ECL beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 1.3%. The stock has rallied nearly 34.4% in the past year.

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