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TVK posts losses of Ft 1.25 bln in Q1

Chemicals company TVK Rt, majority-owned by Hungarian oil and gas company Mol Rt, had consolidated net losses of Ft 1.25 billion (€4.82 million) in the first quarter of 2006, compared to net profit of Ft 5.34 billion in the same period a year earlier, the company said in its preliminary consolidated report, prepared with International Financial Reporting Standards (IFRS) and published on Friday.

Revenue rose 43% to Ft 77.09 billion in Q1 2006 from the same period a year earlier, supported by the expansion of the company's ethylene- and polymer-producing capacities. The report attributed Ft 16.46 billion of the increase to these expanded capacities, Ft 3.82 billion to higher prices, with Ft 2.99 billion due to exchange rate changes.
Despite the 43% increase in sales, first-quarter EBITDA fell 27% to Ft 6.08 billion, reflecting deteriorating margins in the industry, an unfavorable change in the exchange rates and a rise in energy prices, the report noted. Operating profits fell 50% from a year earlier to Ft 3.07 billion.