Annual Financial Report
Free for publishing 30 April 2018, hour 19:00
FORCHEM PLC'S 2017 AUDITED FINANCIAL STATEMENTS AND REPORT OF THE BOARD OF DIRECTORS
Demand for all the products has been robust during the financial year and group's revenue has increased mainly due to the increase in sales quantities. However, the price of raw-materials has slightly depressed the refining margin. Compared to the previous financial year group's revenue has increased 16 % and operating profit 12 %, but relative EBITDA-margin has decreased from 21 % to 20 %. The group's revenue for the whole year is € 126,6 million and operating profit € 19,7 million.
Crude oil price has trended upwards during past two years. The dynamics of crude oil price affects both raw material prices and a relevant portion of end products price, providing a base for a steady margin. The company has been able to manage these cycles with a satisfactory stability and believes that will be capable to maintain that performance in the future.
In the past the European Union had classified the use of CTO as a waste and enabled it with a taxation which favoured other uses for this raw material. This regulation is now under review and a reclassification would in fact improve the outlook for the industry of CTO fractionation.
The demand for Forchem's products is expected to continue robust. Company continues to develop the business by means of new innovations, new products and co-operation in sales and sourcing. The net sales are expected to remain at current level and no major changes are anticipated for relative profitability and EBITDA.
This release is a summary of Forchem Plc's 2017 Financial Statements and Report of the Board of Directors. The whole report including the tables is attached to this release and it is available at www.forchem.com/investor_area.
For more information:
Forchem Plc
Henrik Lindegrén, CFO, p. +358 44 032 1075, henrik.lindegren@forchem.com
Risto Näsi, CEO, p. +358 50 315 1585, risto.nasi@forchem.com
Attachment
