14 May 2013 02:41 [Source: ICIS news]
LONDON (ICIS)--Hungary's TVK posted a net profit of forint (Ft) 21m ($92,458) in the first quarter of this year, against a net loss of Ft3.0bn a year ago, on an improvement in margins, the petrochemical producer said on Tuesday.
First-quarter net sales revenues fell 5.2% year on year to Ft97.3bn from Ft102.6bn, it added.
The operating result for the quarter swung to a profit of Ft2.3bn from a loss of Ft4.4bn in the same period of 2012, TVK said.
“Poor market demand and the production shortfall of the LDPE-2 unit [which remains out of action following a fire on 31 October last year] decreased the average level of the total capacity utilisation rate,” said TVK CEO Zsolt Petho.
“Since the significant improvement in the petrochemical margins was not coupled with a stabilisation or increase in demand, we think that the favourable quotation price environment is only the result of the feedstock price fluctuation so far, and not a sign of permanent improvement but of market volatility,” he added.
TVK's integrated petrochemical margin in the first quarter of this year was €312/tonne ($405/tonne), compared to €172/tonne in the first quarter of 2012 and €295/tonne in the fourth quarter of last year.
During the first-quarter, the capacity utilisation rate of TVK's petrochemical plants fell 8.5 percentage points to 80.6% year on year, the company said.
TVK is a subsidiary of Hungary's MOL oil, gas and petrochemicals group, which published its own first-quarter results earlier on Tuesday.
($1 = Ft227.13 / $1 = €0.77)
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