Grupa Azoty Q2 net profit sinks to Zl86m on falling ferts prices

14 August 2014 15:39 Source:ICIS News

LONDON (ICIS)--Second-quarter net profit at largest Polish chemical producer Grupa Azoty fell to Polish zloty (Zl) 86m (€20.53m) compared to Zl360m a year ago as the group struggled with falling fertilizer prices, Azoty said on Thursday.

Sales revenues for the second quarter of 2014 slipped to Zl2.37bn from Zl2.57bn in the same period of 2013, Azoty added.

“Despite the price reductions in the fertilizer segment, we have achieved better financial results than market expectations,” said group CEO Pawel Jarczewski.

“Overall, despite the difficult market environment, we are doing better than our competitors,” he added.

Azoty also reported a second-quarter operating profit of Zl103m against the Zl369m recorded for the same quarter of last year.

It said its natural gas feedstock bill for the first half of 2014 was 7-9% cheaper than it was in the previous six months thanks to widening supply options.

As well as fertilizers, state-controlled Azoty produces caprolactam (capro), melamine, polyamide 6 (or nylon 6), titanium dioxide (TiO2), oxo-alcohols and plasticizers.

Its subsidiaries include Zaklady Azotowe Pulawy (ZAP) and Zaklady Azotowe Kedzierzyn (ZAK).

(€1 = Zl 4.19)

By Will Conroy