14 May 2013 11:09 [Source: ICIS news]
LONDON (ICIS)--Oxea’s first-quarter net profit climbed 31% to €21m ($27m) on cost control and pricing discipline, the oxo products firm said on Tuesday.
The Luxembourg-headquartered company said its first quarter sales had been flat at €373m but that a strong earnings increase had produced its third-best quarterly results since Oxea’s inception in 2007.
“While revenues were stable compared with the corresponding period of the prior year, Oxea was able to increase margins as a result of continuous product portfolio optimisation, successful implementation of cost reduction measures and a strong pricing discipline,” it said.
Adjusted earnings before interest, tax depreciation and amortisation (EBITDA) for the quarter were 18% higher at €53m.
Investments in production facilities for specialty esters in Oberhausen, Germany and a third carboxylic acids production unit, also in Oberhausen, will contribute to earnings in future, the company said.
“Oxea’s strong earnings and cash flow position, bolstered by the two new derivatives production facilities, has put Oxea in a position to refinance the existing Senior Secured Notes at more favourable terms,” it added.
“In order to take advantage of the current favourable market conditions, Oxea is currently planning to refinance the existing Senior Secured Notes in mid July 2013 after the expiration of the call protection period.”
($1 = €0.77)
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