Fiscal Q2 net profit at Poland's ZAP falls 36% on capro oversupply

28 February 2013 13:22  [Source: ICIS news]

LONDON (ICIS)--Net profit at Poland's Zaklady Azotowe Pulawy (ZAP) fell by 36% year on year for the second quarter of its fiscal 2012/2013 year to zloty (Zl) 87m ($27.4m, €20.9m) with market oversupply of caprolactam (capro) proving a drawback, the company said on Thursday.

Sales revenues for the second quarter edged down to Zl 973m from Zl 996m a year ago, while earnings before interest, tax, depreciation and amortisation (EBITDA) sank to Zl 121m from Zl 206m.

The capro market situation deteriorated following the launch of new capacities in Asia, which was a factor in cutting the company's chemical segment sales revenues to Zl 95m from Zl 100m, ZAP said.

The agro-products business of ZAP saw its sales revenues edge up to Zl 465m from Zl 458m, the company, Poland's largest producer of nitrogen fertilizers, added.

The end of 2012 saw a reduction of melamine supply on the global market due to planned and unplanned shutdowns, with prices up by 17-23%, ZAP also said.

Since mid-January, 83.7% of ZAP has been owned by Poland's largest chemical group Zaklady Azoty Tarnow (ZAT). ZAT has announced that on 7 March it will make a call for shares to acquire the 16.3% of ZAP it does not own.

($1 = €0.76, $1 = Zl 3.17, €1 = Zl 4.16)


By: Will Conroy
+44 20 8652 3214

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