Poland’s Ciech Q3 net profit nearly halves on higher coke, coal costs

Source: ICIS News


LONDON (ICIS)--Ciech posted in the third quarter a fall in net profit of 45.3% year on year to zloty (Zl) 85.2m ($23.5m) with increased coke and coal input costs weighing on profitability, the Polish soda ash producer said late on Monday.

Revenues edged down 2.1% to Zl 836.3m while earnings before interest and taxes (EBIT) or operating profit fell 20.1% to Zl 122.9m.

The operating profit margin of 14.7% compared to 18% a year ago.

Earnings before interest, tax, depreciation and amortisation (EBITDA) stood at Zl 185.5m, or 11% less than in the third quarter of 2016, the company said.

Investment bank WOOD & Company said: “[EBITDA came] 7% ahead of our estimate and 6% ahead of the consensus. However, we note that the beat was mainly the result of one-offs.”

It added: “At the same time, the adjusted EBITDA of the key segment, soda ash production, reached Zl 161m, only 2% ahead of our estimate. The organic and glass segments' results were fully in line with our estimates.”

The bank concluded that it saw the results as “fully neutral”.

($1 = Zl 3.62)