German chemicals group BASF raised its targets for 2021 on Wednesday after strong demand and higher prices boosted its second quarter performance, continuing the firm’s rebound from last year’s pandemic hit.

The Ludwigshafen-based group booked a net profit of €1.65 billion between April and June, compared with a loss over the same period a year earlier. Revenues rose 56 per cent to €19.8 billion, it said in a statement, confirming preliminary results released on July 9.

Chief executive Martin Brudermueller said BASF had “a very strong” quarter. “We achieved volumes growth and price increases across all regions and all segments,” he said.

BASF benefitted particularly from a 91 per cent sales jump in its chemicals segment, where lower product availability pushed up prices. Strong demand for precious metals also boosted earnings at its surface technology unit.

BASF benefitted particularly from a 91% sales jump in its chemicals segment, where lower product availability pushed up prices. Strong demand for precious metals also boosted earnings at its surface technology unit

The group plunged into the red last year as pandemic-induced lockdowns hit swathes of industries supplied by BASF, including aviation and car manufacturing.

A global economic recovery has since gathered pace, and BASF said it expected “that there will be no severe restrictions on economic activity” because of the coronavirus in the second half of 2021.

BASF – which had already lifted its full-year outlook after the first quarter – said it now expected revenues to come in higher still, at €74 to €77 billion, compared with €68-€71bn forecast in April.

Pre-tax profit (EBIT) is forecast to reach €7.0-€7.5 billion, a sharp increase on the prior target of €5.0-€5.8bn.

The firm, whose chemicals are also used in pharmaceuticals, cleaning products, food and agriculture, employs more than 110,000 people globally.

BASF launched a turnaround plan last year that includes shedding 2,000 jobs by the end of 2022 to cut costs.