Hungary's TVK Q2 net profit falls 78.3%, sales down 12.6%

14 August 2012 03:29  [Source: ICIS news]

LONDON (ICIS)--TVK's second-quarter net profit slumped by 78.3% year on year to forint (Ft) 193m ($853,227 or €691,113) as the company struggled to make petrochemical sales amid the economic difficulties of Europe, the Hungarian company said on Tuesday.

Sales revenues fell 12.6% in the quarter to Ft96.0bn, it added.

“In the second quarter, our business performance was again fundamentally formed by the unfavourable economic circumstances,” said TVK CEO Zsolt Peth.

“The integrated petrochemical margin rose significantly in the second quarter from the historical low level of January-February, however this was not enough to improve our results for Q2 [the second quarter], or H1 [the first half of the year] even near to the break-even point,” he added.

Several cyclical maintenance shutdowns sharply affected TVK production during the second quarter, the company noted.

From end-May until end-July, TVK's Olefin-1, HDPE-1, LDPE-2 and PP-3 plants were shut down for scheduled overhauls that the company carries out every three years, it added.

In future, the Olefin-1 and PP-3 plants would only undergo an overhaul every four years, instead of every three, TVK said.

TVK is wholly owned by Hungary's MOL oil, gas and petrochemicals group, which reported its own second-quarter financial results earlier on Tuesday.

($1 = Ft226.2, $1 = €0.81)

By: Will Conroy
+44 20 8652 3214

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