Polish ZAT’s Q4 net profit drops; ferts subsidiary nearly stable

20 March 2012 17:32  [Source: ICIS news]

LONDON (ICIS)--Poland’s Zaklady Azoty Tarnow (ZAT) group saw its fourth-quarter 2011 net profit fall to zlotych (Zl) 231m ($74m, €56m) from Zl357.8m a year ago, but a solid performance by multi-component fertilizer subsidiary Zaklady Chemiczne Police (ZChP) protected the bottom line, ZAT said on Tuesday.

ZChP, also a titanium dioxide (TiO2) producer, achieved a fourth-quarter net profit of Zl150.1m, compared with Zl47.4m in the same quarter a year ago – a result that far exceeded most analysts’ expectations of no more than Zl70m, ZAT added.

ZAT – which last year replaced Ciech as Poland’s largest chemical group by revenue, after taking over ZChP and fertilizer and oxo-alcohols maker Zaklady Azotowe Kedzierzyn (ZAK) – also reported full-year 2011 net profit of Zl461.5m, against Zl391.0m for the previous year.

Revenues for 2011 soared to Zl5.3bn from Zl1.9bn in the previous year – largely because of the group’s expansion.

Looking ahead, ZAT said it was unlikely the group’s performance over 2012 would match that of the previous year.

Obtained prices for the ZAT group's fertilizer output were mainly stable globally, but ZAT’s caprolactam business suffered from higher benzene feedstock prices in Europe and declining demand for caprolactam in China, it said.

In February, ZChP’s ammonia output was hit by gas restrictions caused by cold weather, ZAT also noted.

($1 = €0.76, $1 = Zl3.10, €1 = Zl4.11)

By: Will Conroy
+44 20 8652 3214

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