Polish Synthos Q3 net profit falls 26% on weak synthetic rubber

15 November 2013 16:05  [Source: ICIS news]

LONDON (ICIS)--Third-quarter net profit at Poland-based synthetic rubber producer Synthos fell 26% year on year to zloty (Zl) 82.3m ($26.5m, €19.6m) from Zl 110.8m in the same period last year on substantially weaker margins, the company said on Friday.

Sales revenues for the third quarter of this year declined to Zl 1.40bn from Zl 1.59bn in the second quarter of 2012, it added.

Synthos reported Zl 699m in third-quarter synthetic rubber sales revenues, down 27% year on year, noted investment bank WOOD & Company.

Also underlining the weaker performance of the company’s synthetic rubber business were synthetic rubber earnings before interest, tax, depreciation and amortisation (EBITDA) of Zl 27.2m, some 79% less than what was seen in the third quarter of 2012, the bank added.

The recovery in European rubber demand was proving slow and gradual, Piotr Drozd, a chemical industry analyst at the bank, said.

“While we see scope for Synthos’ ESBR [emulsion styrene butadiene rubber] margin to recover in Q4, we expect the 9% Asian BD [butadiene] price pullback from the October peak to cap the upside to European prices and spreads,” he added.

($1 = €0.74, $1 = Zl 3.11, €1 = Zl 4.19)

By: Will Conroy
+44 20 8652 3214

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