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Narrowing margin puts TVK in red

A narrowing margin caused by higher feedstock and energy prices, as well as the effect of the firmer forint on revenue, put Hungarian chemicals company TVK in the red with a net loss of Ft 4.6 billion in Q2.

TVK had net profit of Ft 6.2 billion in Q2 2008, the company said in its consolidated IFRS report for the period published on Tuesday.

TVK's Q2 revenue was flat at Ft 84.0 billion, but raw materials and consumables rose 15% to Ft 81.1 billion. TVK had operating losses of Ft 6.4 billion, compared to operating profit of Ft 8.6 billion in the same period a year earlier. TVK's pre-tax loss came to Ft 5.4 billion.

TVK had a first-half net loss of Ft 2.8 billion. First-half revenue rose 12% to Ft 180.9 billion from the same period a year earlier. Cost of raw materials and consumables climbed 28% to Ft 168.5 billion.

TVK had total assets of Ft 219.7 billion on June 30, 2008, down 3% from twelve months earlier. Net assets fell 2% to Ft 145.9 billion.

Hungarian oil and gas company MOL held a direct and indirect stake of 94.9% in TVK at the end of the period. (MTI – Econews)