Higher feedstock costs, market slump hit Polish ZAT’s Q4 net profit

21 March 2013 16:47  [Source: ICIS news]

LONDON (ICIS)--Polish chemical producer Zaklady Azoty Tarnow (ZAT) saw its fourth-quarter 2012 net profit cut to zloty (Zl) 31.6m ($9.8m, €7.6m) from Zl 231m in the same quarter of 2011, with higher feedstock costs and market downturns both taking a toll, the group said on Thursday.

Sales revenues shrank 22.9% year on year to Zl 1.6bn from Zl 2.1bn, it added.

ZAT was also hit by a small fourth-quarter operating loss of Zl 2.0m, compared with the operating profit of Zl 192m that it enjoyed in the corresponding period of the previous year, the group said.

The closing quarter of 2012 saw ZAT's polyamide 6 (or nylon 6) business pressured by rising feedstock costs, it added.

“We estimate that this year should see no worsening of results in the fertilizer segment, but in the plastics segment, due to the increasing trend in raw material prices, we can expect [more] difficulties,” ZAT, also a caprolactam (capro) producer, said.

Another difficulty was a forced revaluation of carbon emission permits held by the company, ZAT said, without disclosing how much this had cost the company.

ZAT is using the name Grupa Azoty for marketing purposes, in advance of the formalisation of a group of that name that is being created in a merger and consolidation process.

($1 = Zl3.22, €1 = Zl4.18)

By: Will Conroy
+44 20 8652 3214

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