06 March 2012 11:47 [Source: ICIS news]
LONDON (ICIS)--Turkey’s Petkim petrochemical company suffered a “disastrous” fourth quarter, with margin deterioration hitting the producer even harder than anticipated, Erste Group bank said on Tuesday.
Petkim suffered a net loss of Turkish lire (TL) 40m ($22.6m, €17.1m) in the fourth quarter, compared to a net profit of TL46m in the same quarter a year ago, while sales revenues rose to TL974m from TL780m, according to the company’s figures.
“Its figures were very poor, as the company suffered severe losses, despite recording considerable one-off [real estate sale] gains,” it added. "The market consensus had forecast a net profit of TL23m and our estimate was TL6m."
Erste noted that the prices of oil and naphtha, the company’s main input cost factor, remained high, “putting enormous pressure on profitability indicators”.
“We underestimated the extent to which Petkim was impacted by the deterioration of petrochemicals margins in [the fourth quarter of] 2011, leading to these disastrous figures,” Erste continued.
“This concludes a very weak year for the Turkish petrochemicals producer,” the bank said.
“As oil prices have risen higher in the current quarter, petrochemicals margins for naphtha-based producers will remain subdued; we thus think that it will be an uphill battle for Petkim to reach the consensus [profit] estimates in 2012, or even our lower ones,” it added.
($1 = €0.76)
($1 = TL1.77)
(€1 = TL2.34)
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