During Q3 Forchem´s performance has been in accordance with company´s expectations and there are no major operative changes compared to the previous quarters. Group´s revenue for Q3 is € 33,0 million and operating profit € 4,2 million. Group´s year-to-date revenue is € 96,9 million and operating profit € 15,6 million.
Demand for Forchem´s main products, TOR and TOFA, has remained robust and margins have also been as expected: there are no major changes in refining margin compared to H1. However, in Q3 Forchem´s profitability at EBITDA-level has decreased from 23 % to 17 %. The main reasons for the decrease are the regular maintenance break in August and normal seasonal cyclicality in sales mix.
In Q3 crude oil price has risen and it will increase Forchem´s raw material cost for energy related contracts. Furhtermore, the increase in crude oil price has also expanded activity in oil field operations, which, in turn, raises demand for CTO based products. Hence, CTO market has tightened and if crude oil price stays at the current level or even rises, it might put some pressure on Forchem´s margin in the future.
Streamlining operations within group are ongoing. Working capital is still relatively high due to sales receivables although inventories are quite low.
This release is a summary of Forchem Oyj’s bondholder report concerning Q3/2017. 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, firstname.lastname@example.org