09 May 2013 17:31 [Source: ICIS news]
LONDON (ICIS)--Poland's newly-established Grupa Azoty on Thursday put out its first ever quarterly results, with analysts noting that better than expected fertilizer profitability helped drive the group's first-quarter net profit to zloty (Zl) 410.4m ($130.7m, €99.4m).
The figure is a steep improvement compared with the Zl 161.7m net profit recorded in the first quarter of 2012 by the smaller predecessor to Grupa Azoty, the Zaklady Azoty Tarnow (ZAT) group. Grupa Azoty took its new name after acquiring Poland's Zaklady Azotowe Pulawy (ZAP) in January to become Europe's second largest fertilizer group.
Grupa Azoty's first-quarter sales revenues were Zl 2.7bn, compared with the Zl 1.9bn recorded by ZAT for the same quarter of last year, while operating profit moved up to Zl 419.1 from Zl 240.7m.
Noting that year on year the fertilizer division's sales revenues surged 43% to Zl 1.5bn from Zl 1.1bn, WOOD & Company investment bank said in a note to investors: “[The group], now incorporating Zaklady Azotowe Pulawy, has reported exceptionally strong headline figures for the first quarter driven primarily by the consolidation but also by better than expected profitability within the fertilizer segment.”
Even adjusting for one-offs booked for the first quarter, including a Zl 174.3m in revaluation gains on the acquisition of ZAP, Grupa Azoty beat consensus estimates by around 20% on the operating profit line and 27.7% on the net profit line, the bank estimated.
“As expected, the chemical segment, i.e., oxo-alcohols/melamine, and plastics, posted losses for Q1, with EBIT [earnings before interest and tax] margins of -5.6% and -4.6%, respectively,” WOOD & Company said.
($1 = €0.76, $1 = Zl 3.14, €1 = Zl 4.13)
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