Covestro expects to give an update on a possible deal with suitor Abu Dhabi National Oil Company (ADNOC) relatively soon, the German chemicals maker said on Tuesday after lowering the upper end of its profit guidance.

"Talks with ADNOC continue in a very constructive manner, we expect to be able to give an update relatively soon," finance chief Christian Baier told Reuters in an interview.

Covestro said in June it was stepping up talks with ADNOC after the Emirati energy company made an improved 11.7 billion euro ($12.7 billion) takeover bid following more than a year of pursuing the chemicals firm.

The German group forecast 2024 earnings before interest, tax, depreciation and amortisation (EBITDA) of between 1 billion and 1.4 billion euros ($1.1 billion and $1.5 billion), bringing down the top end from 1.6 billion euros, citing the challenging economic environment.

The company, whose main products include foam chemicals used in mattresses, car seats and insulation for buildings, said lower raw material prices had only partially offset the demand-related decline in average sales prices.

Covestro's EBITDA fell 16.9% to 320 million euros in the April-June quarter, beating analysts' average estimate of 311 million euros in a company-provided consensus.

Its second-quarter sales of 3.69 billion euros were 0.8% lower than last year and in line with the consensus. ($1 = 0.9244 euros)

(Reporting by Bartosz Dabrowski and Patricia Weiss; Editing by Milla Nissi)