(Reuters) - German chemicals distributor Brenntag said attacks on shipping in the Red Sea have led to delays and to increased costs that it has passed to its customers.

The Red Sea crisis led to travelling times of an extra two-to-three weeks for the company's containers out of Asia-Pacific and caused freight costs to more than double, but the group said it had been able to adapt its global supply chains without giving further detail.

Brenntag also raised its dividend for 2023 to 2.10 euros per share from 2.00 euros and said there were hints of recovery.

In a media call, CEO Christian Kohlpaintner said he saw "encouraging signs" in the first two months of the year for increased demand in Europe, drawing a less negative picture than other chemical groups such as Covestro.

Subdued demand for chemical products has led customers to reduce inventories, reducing companies' profits.

The Essen-based group expects earnings before interest, taxes and amortisation (EBITA) for 2024 of 1.23 billion to 1.43 billion euros ($1.34 billion-$1.56 billion).

Brenntag reported EBITA of 1.27 billion euros for the year, down 16% and just slightly below the 1.28 billion forecast in a poll by Vara Research.

Brenntag shares were down 2.7% at 1327 GMT.

Analysts said the outlook remained weak.

"Going into the first half of the year, expectations are low when it comes to any kind restocking despite low inventory levels. This means that the normalising after the outstanding 2022 and strong first half of 2023 will last into 2024," Baader analyst Christian Obst said in a note.

Sales at Brenntag's Essentials division, a wholesale business for process chemicals, fell 11.2% to 9.31 billion euros on a foreign exchange adjusted basis, with EMEA its weakest region.

Sales at its Specialties division, which provides more complex services to industries such as nutrition, pharmaceuticals and household products, fell 8.6% to 6.98 billion euros, weighed down by its U.S. business.

Chief Financial Officer Kristin Neumann said that the group has no plans for a new share buyback, after finishing a 750 million euro programme.

($1 = 0.9174 euros)