Q3 has been operatively largely in accordance with our expectations. Group’s revenue for Q3 is € 28,8 million and operating profit € 4,2 million. Group’s year-to-date revenue is € 91,6 million and operating profit € 13,7 million.
Group’s revenue and operating profit have slightly decreased in Q3 compared to previous quarters mainly due to regular maintenance break and normal cyclicality in sales mix. Furthermore, the increase in CTO prices has slightly lower the margin. However, the profitability of Q3 at EBITDA-level is still same than in Q2 (18 %) because fixed costs are below average and Q2. On annual level the fixed costs are in line to the previous year and our expectations.
There is now a very high degree of uncertainty around crude oil price. At the beginning of Q4 crude oil price has clearly declined and if the current price level remains or even declines, it will decrease Forchem’s raw material costs for energy related contracts. Regardless crude oil price, tightened CTO market put anyway more pressure on Forchem’s product prices and margin.
This release is a summary of Forchem Oyj’s bondholder report concerning Q3/2018. 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