Stock Exchange release
Free for publishing 28.02.2017, hour 12:00
FORCHEM OYJ'S Q4.2016 BONDHOLDER REPORT
Q4 has been operatively very similar to the previous quarters of 2016. Demand for main products has been in accordance with our expectations, there has been some normal seasonality in the demand for TOR and TOFA.
Margin levels have been also as expected: in percentage terms there have not been big changes compared to previous quarters or last year but there has been slight decline of margins in euro per ton due to general price erosion. The general price erosion is also the major reason for the drop in our yearly turnover.
However, in Q4 increase in Crude Oil price has increased our CTO cost for energy related contracts which has had a negative effect on our margins. That may put some pressure on our refining margin also in the future, if product prices stay soft.
Group's revenue of the quarter is € 24,6 million and operating profit € 2,9 million. The revenue for the whole year is € 109 million and operating profit € 17,6 million.
Slow-down of oil field operations in the US have dropped the demand for CTO based products in that segment, which has caused the market to be long in both CTO and TOFA for the moment. For this reason, and normal seasonal variation, CTO availability is good at the moment. This might change due to increase in Crude Oil price.
This release is a summary of Forchem Oyj's bondholder report concerning Q4/2016. 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.
The complete Financial Statements will be published on 28 April 2017.
For more information:
Forchem Oyj
Henrik Lindegrén, CFO, p. +358 44 032 1075, henrik.lindegren@forchem.com
http://www.globenewswire.com/NewsRoom/AttachmentNg/28f74bfa-f70a-41d3-a3f5-73e8601df07a
