“The 38% decrease in turnover compared to the same period of 2022 was caused by 56% of the decrease in quantities sold by the company, amid a reduction in demand in the European market, the remaining 44% being caused by lower sales prices. The operating result in January-September 2023 is at a lower level than in the same period of 2022. The company operated between January and September 2023 at a reduced capacity, especially with sections that consume large electricity and natural gas, and reduced expenses, including staff layoffs,” as per the company’s quarterly financial report.
Total expenses stood at RON988 million in Jan-Sept 2023, lower than RON1.66 billion in the same period of 2022.
“The company managed between January and September 2023 to achieve an operating profit margin of 9% despite the reduction in turnover compared to the same period of the previous year, generated by maintaining the downward trend of consumption started in the second half of 2022. The margin was eroded by the operation of both industrial platforms at lower capacity, especially with the sections that consume electricity and natural gas, the company correlating production with the sales trend on the profile market. The negative net financial result between January and September 2023 was mainly influenced by the increase in interest expenses following the increase in the EURIBOR variable margin and the loans contracted in the last 12 months. Exchange differences related to the revaluation of loans also had a significant influence,” the report reads.
According to the report “analysing the physical production by product categories achieved in the first 9 months of 2023 compared to 9 months 2022, we find a decrease especially in chlorosodium products and polyolspolyethers. The market for these products was affected by significant volumes imported from nonEuropean areas, especially China and the Middle East. This phenomenon emerged at the end of 2022 amid rising prices of chlorosodium products in the Mediterranean and improved from April 2023 onwards as sales prices fell on the back of lower production costs.
Long-term liabilities as at September 30, 2023 increased by RON128 million compared to December 31, 2022, mainly through uses from investment loans contracted from UBS Switzerland and Garanti Bank to finance the cogeneration and trigeneration plants in Ramnicu Valcea.
The company is majority owned by businessman Stefan Vuza and has a market capitalization of RON5.5 billion.