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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.