CHIMCOMPLEX S.A. To:
Bucharest Stock Exchange
Financial Supervisory Authority
Financial Instruments and Investments Sector
Quarterly Report
on stadalone interim financial statements of Chimcomplex SA Borzești
prepared in accordance with the Order of the Ministry of Public Finance nr. 2844/2016
drawn up in accordance with Article 130 of Regulation No 130. 5/2018 issued by the Financial Supervisory Authority containing the economic and financial indicators provided in Annex no. 13 Order of the Ministry of Public Finance no.2844/2016
Current Report according to
Law nr. 24/2017 on issuers of financial instruments and market operations (Article 69) ASF Regulation no. 5/2018 on issuers of financial instruments and market operations (Annex 13)
Report Date
Company name
Registered office
Telephone/fax number
Website
Unique registration code with the ORC
Serial No in Reg. of Commerce
Subscribed and paid-in share capital
The main characteristics of securities
LEI Code: 549300FCIHJZOG56WD36
The regulated market on which the issued securities are traded
Accounting standard applied:
May 15, 2024
CHIMCOMPLEX SA Borzești
Str. Industriilor, nr.3, Onesti, județ Bacău, România
0234/302100; 0234/302102
www.chimcomplex.com
ir@chimcomplex.com
RO960322
J04/493/1991
304.907.851 lei
1.Nominative shares, dematerialized, whose records are kept by the Central Depository SA Bucharest
2.Nominal value, lei/share: 1 leu/share
Number of shares: 304,907,851
BVB, standard category, symbol CRC
Order of the Ministry of Public Finance no.2844/2016
The main object of activity is 2013 NACE code - manufacture of basic inorganic chemicals, in accordance with the provisions of the Articles of Association of the Company.
CHIMCOMPLEX S.A. BORZEȘTI
Str. Industriilor nr. 3, Onești, jud. Bacău, România Tel. 0234/302.250; Fax 0234/302.102
E-mail: office@chimcomplex.com
Web: www.chimcomplex.com
Reg. Com. J04/493/1991, Cod Unic 960322 Capital Social subscris şi vărsat: 304907851 RON Cont: RO60BUCU1111215962132
ALPHA BANK BUCURESTI
RO2021.055.061Q RO2021.055.061E RO2018.055.061
The activity that holds the largest share in the income achieved by the company during January-September 2023, according to NACE codification, is 2014 - manufacture of other basic organic chemicals.
- The economic and financial indicators at and for the period ended on 31.03.2024 mentioned in Annex 13 of ASF Regulation no. 5/2018
Indicators | Calculation formula | March 31, 2024 | ||
Current liquidity indicator | Active curente | 1,24 | ||
Current liabilities | ||||
Indebtedness indicator | Borrowed capitalx 100 | 29,84% | ||
Equity | ||||
Borrowed capitalx 100 | 22,98% | |||
Employed capital | ||||
Flow rotation speed | Average customer balancex 90 | 21 days | ||
(customers) | Turnover | |||
Speed of rotation of non- | Turnover | 0,20 | ||
current assets | Non-current assets | |||
All analyzed indicators are positioned within the reference range considered optimal at the end of the reporting period.
B. Elements of overall evaluation
- Revenue: Total revenues in January-March 2024 were 418,593 thousand lei, of which 415,005 thousand lei operating income and 3,587 thousand lei financial income.
- Costs: The total expenses recorded during January-March 2024 were 405,061 thousand lei, of which 394,062 thousand lei operating expenses and 10,999 thousand lei financial expenses.
- Loss/Profit: As of March 31, 2024, the company recorded an operating profit (operating result) of 20,944 thousand lei. On total activity, the net result was profit of 7,439 thousand lei.
lei | |||
31 March 2024 | 31 March 2023 | ||
Total gross income, of which: | 13.531.735 | (6.137.283) | |
-Operating result | 20.943.752 | 2.835.320 | |
-Financial result | (7.412.017) | (8.972.603) | |
Corporate income tax | (6.091.187) | (2.155.651) | |
Net Result | 7.440.548 | (8.292.934) |
In accordance with the data from the company's financial communication calendar and in compliance with the provisions of the specific capital market legislation regarding reporting to capital market institutions and shareholders, CHIMCOMPLEX SA Borzești informs all those interested of the individual interim financial statements concluded on March 31, 2024, prepared in accordance with the provisions of Order no. 2844/2016 for the approval of accounting regulations in accordance with with the International Financial Reporting Standards applicable to companies whose securities are admitted to
CHIMCOMPLEX S.A. BORZEȘTI
Str. Industriilor nr. 3, Onești, jud. Bacău, România Tel. 0234/302.250; Fax 0234/302.102
E-mail: office@chimcomplex.com
Web: www.chimcomplex.com
Reg. Com. J04/493/1991, Cod Unic 960322 Capital Social subscris şi vărsat: 304907851 RON Cont: RO60BUCU1111215962132
ALPHA BANK BUCURESTI
RO2021.055.061Q RO2021.055.061E RO2018.055.061
trading on a regulated market, as subsequently amended and supplemented ("OMFP 2844/2016"). These provisions are in accordance with the provisions of International Financial Reporting Standards adopted by the European Union ("EU IFRS").
Starting with January 17, 2022, the shares of Chimcomplex SA Borzesti are freely traded on the Standard category of the Bucharest Stock Exchange, under the market symbol CRC, continuing their journey on the capital market started in 1996 on the Aero Market.
In the next period, the Company pursues development by continuing the strategic investment program started in the previous year and aims to increase energy efficiency and stability.
The Investment Program for the Onesti Platform of Chimcomplex SA Borzești for 2024 is estimated at EUR 8.3 million and contains:
- Integrated unit for epichlorohydrin-epoxy resin production - the project represents the realization of a complex of flow-linked and integrated installations so as to fit into the concept of circular, sustainable and non-polluting economy. The investment involves acquisitions of technology, equipment and construction-assembly works, consisting of the following modules/installations: hcl gas synthesis, glycerin purification, epichlorohydrin synthesis, epoxy resin synthesis, brine purification, incineration of residues;
- modernization of electricity distribution stations and other modernizations. The proposed objective is to carry out restructuring/modernization works for electricity distribution stations and equipment replacement.
- Other facilities and upgrades - equipment purchases/replacements are envisaged to further modernize, expand capacities and ensure the reliability of the operation of manufacturing and commercial flows.
The Investment Program of Ramnicu Valcea Branch of CHIMCOMPLEX SA Borzesti for 2024 is estimated at EUR 26.1 million and contains the following investments:
- continuing the assembly works of the 3000 cubic meters propylene sphere to increase propylene storage capacity and to increase the degree of operational safety;
- CHP cogeneration plant 49.5 mwe;
- modernization of the 110 kW power station;
- special polyols production plant, including installation for obtaining flexible polyurethane foams, laboratory and monitoring equipment, CHP 108 MWE cogeneration plant - project with PNRR funds for urban heating in Rm.Valcea municipality - ensuring thermal energy, environmental investments - wastewater treatment from the Propenoxide Section;
- other & modernizations & endowments - equipment acquisitions / replacements are envisaged to continue modernization, capacity extensions and ensure the modernization, efficiency and
reliability of the operation of manufacturing and commercial flows.
The investments proposed in the plan for 2024 will be physically made and will be promoted for financing depending on the evolution of the economic and legislative environment, the approval of projects with non-reimbursable financing and the bank financing solutions / investment fund available for Chimcomplex.
CHIMCOMPLEX S.A. BORZEȘTI
Str. Industriilor nr. 3, Onești, jud. Bacău, România Tel. 0234/302.250; Fax 0234/302.102
E-mail: office@chimcomplex.com
Web: www.chimcomplex.com
Reg. Com. J04/493/1991, Cod Unic 960322 Capital Social subscris şi vărsat: 304907851 RON Cont: RO60BUCU1111215962132
ALPHA BANK BUCURESTI
RO2021.055.061Q RO2021.055.061E RO2018.055.061
1. ECONOMIC AND FINANCIAL STATEMENT
1.1. Presentation of the financial results for the January-March 2024 period
These financial results present the financial situation related to the activity carried out by the company between January and March 2024 compared to the same period of 2023:
thousand lei
No. | Indicators | 3 months | 3 months | Differences | % |
Economic-Financial | 2024 | 2023 | thousands lei | ||
0 | 1 | 2 | 3 | 4 = 2 - 3 | 5=4/3*100 |
1 | Turnover | 427.397 | 425.371 | 2.025 | 0,48 |
2 | Total revenue | 418.593 | 396.742 | 21.851 | 5,51 |
-Operating income | 415.005 | 390.074 | 24.931 | 6,39 | |
-Financial income | 3.587 | 6.667 | -3.080 | -46,20 | |
3 | Total expenses | 405.061 | 402.879 | 2.182 | 0,54 |
-Operating expenses | 394.062 | 387.239 | 6.823 | 1,76 | |
-Financial expenses | 10.999 | 15.640 | -4.641 | -29,67 | |
4 | Gross result | 13.532 | -6.137 | 19.669 | -320,48 |
-Operating result | 20.944 | 2.835 | 18.108 | 638,67 | |
-Financial result | -7.412 | -8.973 | 1.561 | * | |
5 | Income tax expenses | 6.091 | 2.156 | 3.936 | 182,57 |
6 | Deferred tax revenue | 0 | 0 | 0 | * |
7 | Net Result | 7.441 | -8.293 | 15.733 | * |
The company managed between January and March 2024 to achieve an operating profit margin of 5%, despite maintaining turnover at the same level compared to the same period of the previous year, generated by maintaining the downward trend of consumption started in the second half of 2022.
The negative net financial result between January and March 2024 was mainly influenced by the increase in interest expenses due to the increase in the EURIBOR variable margin and contracted loans.
Every month, the company's management analyzes multiple production scenarios, taking into account the demand for finished products, availability and acquisition costs of raw materials and utilities, production capacities and other aspects, and adopts that production scenario that maximizes monthly EBITDA. Production flows can operate flexibly, between 40% -100% of installed capacity, which gives the company a high degree of adaptability in management decisions.
CHIMCOMPLEX S.A. BORZEȘTI
Str. Industriilor nr. 3, Onești, jud. Bacău, România Tel. 0234/302.250; Fax 0234/302.102
E-mail: office@chimcomplex.com
Web: www.chimcomplex.com
Reg. Com. J04/493/1991, Cod Unic 960322 Capital Social subscris şi vărsat: 304907851 RON Cont: RO60BUCU1111215962132
ALPHA BANK BUCURESTI
RO2021.055.061Q RO2021.055.061E RO2018.055.061
The company's management has continuously made efforts to reduce the costs of utilities and main raw materials, the evolution of purchase prices being highlighted in the table below:
The company ended the first quarter of 2024 with a net profit of 7.4 million lei.
3 | 3 | |||
months | months | Differences | ||
Completed productions | 2024 | 2023 | ||
- tons - | - tons - | - tons - | % | |
Chlorosodium | 87.981 | 77.700 | 10.281 | 13% |
Propenoxide | 21.185 | 17.079 | 4.106 | 24% |
Polyols | 25.295 | 20.172 | 5.123 | 25% |
Plasticizers | 10.582 | 909 | 9.673 | 1064% |
Inorganic chlorides | 1.080 | 3.253 | -2.173 | -67% |
Methylamine | 0 | 77 | -77 | -100% |
Total | 146,124 | 119,190 | 26,934 | 23% |
Between January and March 2024, the company produced and delivered three product categories:
- Polyols - polyethers with a share of 57% in total sales;
- Chlorosodium products with a share of 30% in total sales, of which liquid and solid soda with a share of 19% in total sales;
- Oxo - alcohol products with a share of 11% in total sales.
Chimcomplex focused its activity on the polyols/polyethers and oxo-alcohols sectors, which are the most profitable. Although the sales volume increased by 12%, the turnover remained relatively
CHIMCOMPLEX S.A. BORZEȘTI
Str. Industriilor nr. 3, Onești, jud. Bacău, România Tel. 0234/302.250; Fax 0234/302.102
E-mail: office@chimcomplex.com
Web: www.chimcomplex.com
Reg. Com. J04/493/1991, Cod Unic 960322 Capital Social subscris şi vărsat: 304907851 RON Cont: RO60BUCU1111215962132
ALPHA BANK BUCURESTI
RO2021.055.061Q RO2021.055.061E RO2018.055.061
constant in the two analyzed periods, with a slight decrease of about 3%, due to the decrease in prices and market quotations for chlorosodium products:
The market of chlorosodium products in the period from January to March 2024 compared to the same period 2023
In the first quarter of 2024, the European caustic soda market recorded high availability, reflected in pressure on sales prices. In addition, local producers, non-European imports (Iran, Russia, Turkey) continued to supply the market with chlorosodium products at competitive prices.
Month | Production (to) | Capacity used (%) | |||
2023 | 2024 | % change | 2023 | 2024 | |
January | 590,791 | 692,622 | +17.2% | 59.1% | 67.8% |
February | 612,266 | 705,602 | +15.2% | 67.8% | 73.9% |
March | 607,766 | 690,555 | +13.6% | 60.8% | 67.6% |
The main challenge we still face is the decline in demand for caustic soda and the struggle to maintain market segments in all European countries.
A very high availability of the product led to the galloping depreciation of the price. All chlorine derivatives (PVC, polyethers, ECH, etc.) suffered as a result of reduced demand, high inflation and high interest rates on financing. High transport levies and the Panama and Suez Canal crisis limited Europe's import and export opportunities in the short term, and the impact on domestic supply was limited, with local chlorine demand remaining the main driver of caustic soda availability. Europe has 62 electrolysis
CHIMCOMPLEX S.A. BORZEȘTI
Str. Industriilor nr. 3, Onești, jud. Bacău, România Tel. 0234/302.250; Fax 0234/302.102
E-mail: office@chimcomplex.com
Web: www.chimcomplex.com
Reg. Com. J04/493/1991, Cod Unic 960322 Capital Social subscris şi vărsat: 304907851 RON Cont: RO60BUCU1111215962132
ALPHA BANK BUCURESTI
RO2021.055.061Q RO2021.055.061E RO2018.055.061
plants in 19 countries, with a capacity of 12,108,000 tonnes of chlorosodium products. (source:
EUROCHLOR).
In the first quarter of 2024, Chimcomplex, with a production capacity of 208,000 tons of lye, marketed 36,659 tons of lye and 2,900 tons of solid caustic soda, which represents an operating rate of 76%, above the European average.
CHIMCOMPLEX S.A. BORZEȘTI
Str. Industriilor nr. 3, Onești, jud. Bacău, România Tel. 0234/302.250; Fax 0234/302.102
E-mail: office@chimcomplex.com
Web: www.chimcomplex.com
Reg. Com. J04/493/1991, Cod Unic 960322 Capital Social subscris şi vărsat: 304907851 RON Cont: RO60BUCU1111215962132
ALPHA BANK BUCURESTI
RO2021.055.061Q RO2021.055.061E RO2018.055.061
The recovery of caustic soda consumption is generated by the recovery of the alumina, pulp and paper and water treatment industries, but also by the recovery of chlorine derivatives consumption - mainly PVC and polyurethanes. In addition, the cessation of the conflict in Ukraine and the start of Turkey's reconstruction will lead to a repositioning of consumption and an increase in the operating rates of production capacities. European production of caustic soda will remain largely stable without significant changes in production. There is more uncertainty in the second half of the year, but there are signs of a recovery in the industry, although it is unlikely to be a quick one.
The polyether market between January and March 2024, compared to the same period in 2023.
The polyether market became limited in the first part of the year due to constant supply disruptions in Europe caused by voluntary production stoppages, blockage of the Suez Canal, unplanned production shutdowns and low availability of raw materials, all leading to limited stocks of polyether.
In the first quarter of 2024, Chimcomplex recorded an increase in volumes sold by 46% compared to Q1 2023.
The polyurethane industry remained in crisis, with minor changes or even stagnation in demand in the first part of January, as private consumption continued to be low, corroborated with weaker activity in the construction sector. The latter did not register significant changes in February or March either. Some positive results are expected to be seen with the likelihood of interest rate cuts by the European Central Bank. This will give a boost to the activity of the construction sector in the coming quarters, however, most likely, this major change will be felt in 2025.
CHIMCOMPLEX S.A. BORZEȘTI
Str. Industriilor nr. 3, Onești, jud. Bacău, România Tel. 0234/302.250; Fax 0234/302.102
E-mail: office@chimcomplex.com
Web: www.chimcomplex.com
Reg. Com. J04/493/1991, Cod Unic 960322 Capital Social subscris şi vărsat: 304907851 RON Cont: RO60BUCU1111215962132
ALPHA BANK BUCURESTI
RO2021.055.061Q RO2021.055.061E RO2018.055.061
All European producers of polyols had malfunctions or were affected by the availability of propylene/propene oxide.
CHIMCOMPLEX S.A. BORZEȘTI
Str. Industriilor nr. 3, Onești, jud. Bacău, România Tel. 0234/302.250; Fax 0234/302.102
E-mail: office@chimcomplex.com
Web: www.chimcomplex.com
Reg. Com. J04/493/1991, Cod Unic 960322 Capital Social subscris şi vărsat: 304907851 RON Cont: RO60BUCU1111215962132
ALPHA BANK BUCURESTI
RO2021.055.061Q RO2021.055.061E RO2018.055.061
Positive aspects:
- Since February all types of polyethylene have been sold at a profit;
- Prices continued their upward trend in March.
Negative aspects:
- The decrease by suppliers of the quantities of propylene delivered on contracts, which led to an increase in the quantities purchased on the spot and implicitly in the average purchase price, counteracted by a faster increase in prices for finished products;
- The building market continues to stagnate.
3 months 2024 | 3 months 2023 | |||
-lei- | % | -lei- | % | |
Europe | 372.088.150 | 87,06 | 400.154.297 | 94,07 |
Middle East | 49.211.611 | 11,51 | 24.094.496 | 5,66 |
Asia-Pacific | 3.446.053 | 0,81 | 559.667 | 0,13 |
America | 661.420 | 0,15 | 538.079 | 0,13 |
Africa | 1.989.528 | 0,47 | 24.883 | 0,01 |
TOTAL | 427.396.763 | 100,00 | 425.371.421 | 100,00 |
1.2.Balance sheet items as of March 31, 2024 compared to January 1st, 2024:
31-Mar-24 | 01-Ian-24 | |
ASSETS | thousand lei | thousand lei |
Non-current assets | 2.176.395 | 2.197.619 |
Current Assets | 559.524 | 532.953 |
Total assets | 2.735.918 | 2.730.572 |
EQUITY AND DEBT | ||
Total equity | 1.726.840 | 1.737.643 |
Long-term liabilities | 561.901 | 575.479 |
Current liabilities | 447.177 | 417.450 |
Total equity and debt | 2.735.918 | 2.730.572 |
CHIMCOMPLEX S.A. BORZEȘTI
Str. Industriilor nr. 3, Onești, jud. Bacău, România Tel. 0234/302.250; Fax 0234/302.102
E-mail: office@chimcomplex.com
Web: www.chimcomplex.com
Reg. Com. J04/493/1991, Cod Unic 960322 Capital Social subscris şi vărsat: 304907851 RON Cont: RO60BUCU1111215962132
ALPHA BANK BUCURESTI
RO2021.055.061Q RO2021.055.061E RO2018.055.061
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Chimcomplex Borzesti SA published this content on 16 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 May 2024 08:31:05 UTC.
