Azoty chemicals' Q1 EBITDA slightly negative, company points to high gas prices

Analysts' expectations for EBITDA were in a wide range from minus PLN 50 million (EUR 11.8 mln) to PLN 178 million (EUR 41.9 mln) in the green.

Azoty group's EBITDA margin in the first quarter was minus 0.2 percent.

Azoty Group's first quarter revenue was above analysts' expectations, who estimated it at PLN 3.67 billion (EUR 863.6 mln).

Azoty Group achieved positive EBITDA profitability in the Agro segment. It amounted to 3.6 percent and was 2.4 percentage points higher year on year. The other segments Plastics and Chemicals had a negative result.

"The positive EBITDA in AGRO is a good sign, especially considering the high gas prices in the first quarter and the scale of the challenges related to fertiliser imports from Russia and Belarus. Regardless of the activities aimed at protecting the market and the announced introduction of tariffs on fertilisers from these directions at the EU level, we intensified our sales activities, which was reflected in the results generated," said acting CEO Andrzej Skolmowski.

"Imports, including from China, remain a major challenge for us in Plastics and Chemicals," he added.

In the first quarter, the group's raw material situation was influenced by a significant increase in the price of natural gas, whose quotations were 75 percent higher compared to the same period last year. Electricity was also affected by the price increase. The unit cost of coal consumption was significantly lower year on year.

As reported by Grupa Azoty, the results obtained were largely negatively affected by imports of products from eastern directions.

pr/ han/