Operationally Q2 has been largely in line to the previous quarters and in accordance with our expectations. Group’s revenue for Q2 is € 31,9 million and operating profit € 4,5 million. Group’s year-to-date revenue is € 62,7 million and operating profit € 9,6 million.
The profitability of Q2 at EBITDA-level is 18 % which is 2 percentage points less than in Q1. The main reason for the decreased EBITDA-level is normal cyclicality in sales mix but margins have also shrunk mainly due to increased scarcity in CTO market and the increase in crude oil price.
The dynamics of crude oil price affects both raw material prices and also a relevant portion of end products price, providing a base for a steady margin. Historically Forchem has been able to manage these cycles with a satisfactory stability and the increase in crude oil price has not significantly depressed the refining margin. The increased crude oil price and tightened CTO market put more pressure on Forchem’s product prices and margin.
This release is a summary of Forchem Oyj’s bondholder report concerning Q2/2018. 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