Cheaper naphtha drives Petkim Q1 profit increase

03 May 2013 15:08  [Source: ICIS news]

LONDON (ICIS)--Petkim posted a net profit of Turkish lira (TL) 3m ($1.7m, €1.3m) in the first quarter of 2013, compared to a TL8m net loss for the same period of last year, driven by improved margins on the back of declining naphtha feedstock prices, the company said on Friday.

First-quarter sales revenues fell 18% year on year to TL990m from TL1.2bn, with exports accounting for 42% of the revenues, it added.

Quarter on quarter, Petkim's petrochemical sales volumes in the first quarter of this year decreased to 402,000 tonnes from 491,000 tonnes in the same quarter of 2012.

The decline demonstrated the continuing stagnation of the petrochemical market in Europe, Petkim said.

On 2 May, market sources said Petkim had dropped its polyethylene (PE), polypropylene (PP) and polyvinyl chloride (PVC) prices as a result of low demand and increasing offers of imported volumes.

Petkim, which says it has a one-quarter share of the Turkish petrochemical market, is owned by the State Oil Company of the Azerbaijan Republic (SOCAR). It is located in Aliaga, near Izmir on western Turkey's Aegean coast.

($1 = €0.77) 

($1 = TL1.79, €1 = TL2.34)

By: Will Conroy
+44 20 8652 3214

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