Narrowing margins, financial loss puts TVK in red
TVK, a unit of Hungarian oil and gas company MOL had a loss of HUF 8.4 billion in the fourth quarter of last year, well over the HUF 2.5 billion loss in the base period as margins narrowed and financial losses grew, the petrochemicals company said in its consolidated IFRS report early Friday.
Operating revenue rose 3% to HUF 99.2 billion, but cost of raw materials and consumables climbed 4% to HUF 96.4 billion. Total operating costs were up 6% at HUF 105.7 billion, causing operating profit to fall 79% to HUF 6.5 billion.
A HUF 2.2 billion financial loss - growing from a HUF 611 million loss in the base period - also hit the bottom line.
For the full year, TVK booked an HUF 11.2 billion loss, also because of worsening margins and higher financial costs.
Full-year revenue was up 13% at HUF 414.8 billion, but operating costs climbed at a faster rate, increasing 15% to HUF 420.6 billion to give the company a HUF 5.8 billion loss at operating level.
A HUF 5.0 bilion financial loss, up from 2.8 billion in the previous year, also hurt earnings.
TVK had total assets of HUF 209.2 billion on December 31, 2011, down 1% from twelve months earlier. Net assets fell 10% to HUF 123.0 billion.
ADVERTISEMENT
Hungary State Debt Ratio Reaches 75.2%Â at End-Q2
Ukraine Suspends OTP Status on 'Sponsors of War' List
Karikó and Weissman Receive 2023 Nobel Prize in Medicine
Pálinka Added to EU-Japan Geographical Indication Deal
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
