Year has started as expected and operatively there have not been big changes in Q1 compared to the last quarters of 2016. Group´s revenue for Q1 has been € 33,0 million and operating profit has been € 5,4 million. Profitability at EBITDA-level has remained at 21 %.
There are some normal seasonality in the demand for TOR and TOFA but generally the demand for Forchem’s main products have been very robust. Margin levels have also been in accordance with the expectations. The increase in crude oil price at the end of 2016 has increased Forchem´s CTO cost for energy related contracts which has also had a negative effect on Forchem´s margins. However, during Q1/2017, the increase has subsided, and the prices have even slightly decreased. After all, the increase in crude oil price may put some pressure on Forchem´s refining margin also in the future, if product prices stay soft.
Due to the increase in crude oil price, oil field operations have activated in US. Hence, US has increased the demand for CTO based products in that segment and regarding both CTO and TOFA, market is not anymore as long as it was. However, CTO availability is good at the moment but might change due to increase in crude oil price in the future.
This release is a summary of Forchem Oyj’s bondholder report concerning Q1/2017. The report is based on the terms and the conditions of the bond. The whole report including the tables is attached to this release and it is available at www.forchem.com/investor_area.
For more information:
Henrik Lindegrén, CFO, p. +358 44 032 1075, email@example.com