Hungary’s TVK swings to a Q1 net loss as margins come under pressure

15 May 2012 04:23  [Source: ICIS news]

LONDON (ICIS)--TVK swung to a net loss of forint (Ft) 3.01bn in the first quarter of 2012 compared with a Ft1.39bn net profit reported last year, with margins having come under further pressure amid Europe's renewed economic slump, the Hungarian petrochemical producer said on Tuesday.

Net sales were down 4.5% year on year to Ft102.56bn ($451m, €351m), while the group reported an operating loss of Ft4.35bn compared with the Ft1.01bn operating profit seen in the first quarter of 2011, TVK added.

The company noted that its integrated petrochemical margin was down by approximately half compared to the first quarter of 2011, with feedstock and exchange rate costs offsetting rises in the quoted prices for its products.

“We expect that following the January trough, the integrated petrochemical margin will improve slowly in the second quarter,” said TVK CEO Zsolt Petho.

Looking ahead, Petho said it was important that TVK successfully delivers on a new 130,000 tonne/year butadiene (BD) plant project, announced in February by parent group MOL.

The new Ft30bn installation, due to come onstream at the end of 2014, could generate profits of Ft8-15bn annually, he added.

MOL reported its first-quarter results earlier on Tuesday.

($1 = Ft227.61, €1 = Ft292.37)

By: Will Conroy
+44 20 8652 3214

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