Turkish Petkim's Q3 net profit falls on 'incredibly high' naphtha prices

09 November 2012 17:33  [Source: ICIS news]

LONDON (ICIS)--Petkim's third-quarter net profit more than halved to Turkish lira (TL) 15m ($8.4m, €6.6m) from TL34.7m in the same period a year ago as extremely high naphtha feedstock costs impacted profitability, the sole major Turkish petrochemical producer said on Friday.

Sales revenues reached TL1.1bn in the third quarter, an 8% increase year on year, the company added.

“The naphtha prices of more than $1,000 [€780/tonne] we are experiencing are figures no one could even imagine three to five years ago,” Petkim said in a statement on its latest financial results.

Markets hit by the renewed economic downturn were frequently pressuring Petkim in to price cuts on low density polyethylene (LDPE), high density polyethylene (HDPE) and polypropylene (PP) products, the firm noted.

Giving nine-month figures for 2012, Petkim reported a TL29.3m net loss, compared to a TL142.6m net profit recorded for the first three quarters of last year.

Nine-month sales revenues were up 17% year on year to TL 3.4bn, while sales volumes were up 10% to 1.43m tonnes.

On 5 November, Erste Group Bank placed Petkim on its list of expected stock market underperformers, citing an unfavourable 2013 outlook for the company following its difficult 2012.

($1 = €0.78)
($1 = TL1.79, €1 = TL2.28)

By: Will Conroy
+44 20 8652 3214

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