Slovnaft's petchem sales revenues fall by 40%, margin sinks 59%

15 May 2012 12:00  [Source: ICIS news]

LONDON (ICIS)--Slovnaft's petrochemical sales revenues tumbled 40% year on year in the first quarter of 2012 to €108m ($138.5m) as Europe's economic difficulties continued to take their toll on the producer, the Slovak company said on Tuesday.

The company's petrochemical integrated margin dropped by 59% from where it was a year ago to €161/tonne, although the margin improved by 37% from the average of the fourth quarter in 2011, it added.

“It is still difficult to make a [business] prediction for the future, therefore we will closely review all operating costs,” said Slovnaft CEO Oszkar Vilagi, noting that petrochemical production costs had risen because of very high oil prices.

Year on year, Slovnaft's production of both monomers and polymers fell by approximately one-fifth during the first quarter, the company added.

Slovnaft, also a refiner, saw its overall net profit in the first quarter of 2012 fall 9% year on year to €40m, with net sales revenues edging up 2% to €1.11bn.

The company is a subsidiary of Hungary's MOL oil, gas and petrochemicals group, which reported its latest financial results earlier on Tuesday.

($1 = €0.78)

By: Leigh Stringer
+44 208 652 3214

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