Troubled La Seda de Barcelona more than doubles H1 EBITDA

01 September 2010 11:39  [Source: ICIS news]

PET maker LSBLONDON (ICIS)--Troubled La Seda de Barcelona (LSB) more than doubled its earnings before interest, taxation, depreciation and amortisation (EBITDA) to €30.3m ($38.4m) in the first six months of this year, compared with €13.6m during the same period last year, the company said in a statement sent on Wednesday.

The Spanish plastics producer said that compared with the same period last year, polyethylene terephthalate (PET) resin sales increased by more than 30% in June to 45,000 tonnes, the highest figure in 16 months.

As a result of improved demand and production levels of nearly 100%, the company said it expected full-year sales to improve by 16% this year compared with 2009, in a range between €950m and €1bn.

LSB added that EBITDA for the year was expected to come in between €61m-€66m, compared with a loss of €67m in 2009.

Margins for PET resin were expected to increase 33% after the sale of less efficient plants, new product launches and the introduction of recycling, the company said.

“The company is now starting a new era with a new management team and a solid industrial project,” said LSB.

The company, which has been struggling with its finances over the past three years, said that after a €300m capital increase, it had achieved its financial restructuring.

This financial restructuring allowed the company to reduce its debt figure by 26.6%, LSB said, adding that at present its net consolidated debt amounted to €763m compared with €1.04bn in June, with a major part of it rated as long term.

The company said it recently carried out a share capital increase for an amount of €226m, led by Portuguese bank Caixa Geral, which is backing and guaranteeing the viability of LSB's new plant at Sines, Portugal.

($1 = €0.79)

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By: Hilde Ovrebekk
+44 20 8652 3214

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