Poland’s ZChP posts Q3 net profit of $30.2m

14 November 2008 14:58  [Source: ICIS news]

PRAGUE (ICIS news)--Poland's second-largest nitrogen fertilizer producer Zaklady Chemiczne Police (ZChP) reported a third-quarter net profit of zloty (Zl) 88.97m ($30.2m/€23.9m), up from Zl38.27m year on year, the company said on Friday.

The state-run company said that it continued to benefit from strong world fertilizer demand through the July-September first quarter of its 2008/2009 financial year.

Revenues amounted to Zl698.83m, compared with Zl457.80m for the same period in 2007, the company said.

The company said that its cumulative net profit for the first nine months of 2008 was Zl340.9m compared with Zl98.36m for the same period in 2007, mainly due to the strong showing of the fertilizer business throughout the period.

ZChP, which also produces titanium dioxide (TiO2) and 70% of Poland's ammonia exports, said the global financial crisis was already clearly showing through in the current quarter.

"In order to counter the effects of the financial crisis, the management board has appointed a team of professionals who have already taken action to control and improve the situation [in line with the] intention of the board to prepare internal-saving measures aimed at stabilising the situation,” the company said in a statement.

ZChP also acknowledged that a natural gas tariff increase of 10.3% for chemical companies, effective since 1 November, would affect its next results.

Last week, Polish treasury minister Aleksander Grad invited Middle Eastern sovereign wealth funds to consider buying majority control of ZChP.

During an official visit to Arab Gulf states to promote Poland's privatisation process, Grad suggested ZChP and Poland’s largest nitrogen fertilizer maker, Zaklady Azotowe Pulawy (ZAP), could be sold to a common owner.

($1 = €0.79/$1= Zl 2.95)

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By: Will Conroy
+44 20 8652 3214

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