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TVK reports HUF 1.6 bln Q4 loss

Hungarian chemicals company TVK, a unit of oil and gas company MOL, racked up a HUF 1.6 billion loss in Q4 as margins narrowed, TVK said.

TVK’s revenue rose 20% to HUF 80.0 billion, but total material costs jumped 46% to HUF 74.6 billion and total operating costs climbed 37% to HUF 81.3 billion.

TVK had a loss of HUF 1.4 billion at operating level, compared to profit of HUF 7.6 billion in the same period a year earlier. Financial losses fell to HUF 427 million in Q4 from a loss of HUF 2.4 billion in the same period a year earlier. For the full year, TVK reported a HUF 9.2 billion loss after more or less breaking even in 2008. Full-year revenue fell 17% to HUF 267.4 billion.

Total material costs fell at a slower rate, dropping 14% to HUF 249.6 billion. Total operating costs also fell by 14%, to HUF 275.0 billion. TVK had an operating loss of HUF 7.6 billion, compared to operating profit of HUF 4.6 billion in 2008. TVK said its petrochemical margin narrowed by 17% in HUF terms and 25% in euro terms in 2009. It booked a financial loss of HUF 1.7 billion, smaller than the HUF 3.7 billion loss a year earlier.

Capital expenditures came to HUF 8.2 billion in 2009. (Reuters)