Are you sure?

TVK Q4 loss grows as margin “dives”

Hungarian petrochemicals company TVK, a unit of MOL, booked a HUF 2.5 billion loss in the fourth quarter of 2010 as margins narrowed, TVK’s consolidated IFRS report for the period shows.

TVK’s loss grew from a HUF 1.58 billion loss in the same period a year earlier as the petrochemical margin “dived in the last quarter”, CEO Árpád Olvasó said.

Revenue was up 20.4% at HUF 96.3 billion, but cost of raw materials and consumables climbed at a faster rate, increasing 24.6% to HUF 93.0 billion.

Personnel expenses grew 2.2% to HUF 2.4 billion.

TVK also booked HUF 1.4 billion on the “other operating expenses” line, nearly triple the amount in the same period a year earlier. The line included payment of a crisis tax on energy sector companies introduced in 2010.

At operating level, TVK had a HUF 3.6 billion loss, well over the HUF 1.3 billion loss in Q4 2009. Net financial losses rose by more than 25% to HUF 572m.

For the full year, TVK booked a HUF 1.1 billion loss, a big improvement over a HUF 9.2 billion loss in 2009.

Full-year revenue was up 37.4% at HUF 367.5 billion and cost of raw materials and consumables rose at about the same rate, increasing 37.1% to HUF 342.1 billion.

Other operating expenses rose 12.4% to HUF 4.5 billion.

TVK was HUF 740 million in the black at operating level, but a HUF 2.7 billion net financial loss pushed it into the red. The operating profit came after operating loss of HUF 7.5 billion in 2009. Net financial loss grew 58.9% or HUF 1 billion from the previous year.

TVK's capital expenditures came to HUF 7.0 billion for the year.

TVK had total assets of HUF 210.7 billion on December 31, 2010, practically unchanged from twelve months earlier. Net assets inched up less than 1% to HUF 136.3 billion.

Non-current liabilities rose 1.1% to HUF 21.5 billion. (MTI – Econews)