BASF, a supplier of chemicals for the automobile, agriculture and construction sectors, said it plans to distribute at least €12 billion (US$13.3 billion) to shareholders from 2025 to 2028.

It aims to pay a dividend of at least €2.25 per share, compared to €3.40 in 2023. In addition, the group plans to buy back shares from 2027 onwards.

BASF also unveiled “new financial targets” over the mid-term, including expected earnings before special items (EBITDA) of €10-12 billion in 2028.

“BASF is setting a new direction with its corporate strategy,” the company said in a statement.

In the coming years, BASF “will focus on strengthening and profitably growing its core businesses”, which it defined as the chemicals, materials, industrial solutions and nutrition segments.

For the other units – environmental catalyst and metal solutions, battery materials, coatings and agricultural solutions – “BASF will pursue active portfolio options where this adds value for BASF and its shareholders”, it said.

The company is already preparing “a divestment process for its decorative paints business in Brazil”, it added.

New CEO Markus Kamieth, former head of BASF’s Asia operations, will give further details to investors later on Thursday.

Like other industrial companies, BASF has been hit hard by higher energy costs in the wake of Russia’s war in Ukraine.

It has also suffered due to a manufacturing slowdown in Germany, and weaker foreign demand.

The group has announced repeated rounds of cost-cutting in recent times, including measures targeting its historic German base of Ludwigshafen.

BASF has also been ramping up its presence its China, and is building a €10 billion chemical plant in the southern province of Guangdong.