BASF sees lower-than-expected third quarter fall in profits

German chemicals giant BASF said Thursday its profits had fallen sharply in the third quarter, driven by divestitures in its oil and gas business.

The Ludwigshafen-based firm said it made 888 million euros ($969 million) net profit, down 27 percent but exceeding the expectations of analysts surveyed by Factset who had predicted a steeper fall to 795 million.

Sales fell by 20 percent to 14 billion, which BASF said was mainly down to a deal with Russia's Gazprom under which it divested its gas trading and storage activities.

That business had accounted for 2.9 billion euros of revenue in the third quarter of 2015.

BASF had already released partial results for the third quarter showing the fall in revenues and operating profits.

In its statement, the firm confirmed its forecast that "sales will decrease considerably in 2016" as a result of the deal.

But chief financial officer Hans-Ulrich Engel said the group remained committed to the "ambitious" goal of an operating profit only "slightly below the level of 2015," when it grew by 10 percent.

Low oil and gas prices have driven down revenues at the group, which hopes to compensate in part by increasing its sales volumes.

BASF suffered a further blow this month when an explosion killed three people, grievously wounding six and lightly injuring seventeen more, at its headquarters in Ludwigshafen in western Germany, where it employs some 36,000 people.