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CIECH Chemical Group: results for the third quarter bring much cause for satisfaction

Although market conditions are still quite challenging, CIECH Chemical Group reports further improvement in profitability. It is worth mentioning that indicators, such as margin or EBITDA, have increased. There has also been a significant increase in the net profit (compared to the same quarter last year).

In accordance with the strategy for the years 2014 – 2019, adopted at the beginning of November, CIECH Chemical Group continues with its restructuring, reorganisation and development operations. The results generated by the Group indicate a further increase in efficiency attributable to the directional decisions taken in 2012.

The past quarter has seen a marked increase in demand for soda in the European markets. Moreover, CIECH also used the opportunities related to the situation in the energy resources market and was able to reduce their purchase prices.

Table 1. Results of CIECH Chemical Group for the third quarter of 2014

PLN millionQ3 2013Q3 2014Δ Q3 2014 - Q3 2013
Revenues from sales823799-24
Gross margin15018838
Gross margin %18%24%6 pp.
EBIT %7%10%3 pp.
EBITDA %13%16%3 pp.
Normalised EBITDA12914314
Normalised EBITDA %16%18%2 pp.
Net profit52823


The Group intends to focus on the organic growth and investments in its own plants, mainly in the soda and organic sectors. The launch of the recently developed saturated polyester resin installation at Organika-Sarzyna or the new calciner at Uzinele Sodice Govora, Romania, is particularly noteworthy.

- The new strategy of CIECH Chemical Group, adopted by its Supervisory Board, indicates organic growth and continuation of CIECH's current activities. We intend to focus on our current investment projects, such as the increase in production capacity at Soda Polska CIECH (i.e. SODA +200 Project). The first stage of the project (additional 60,000 tons of product per year) will be completed early next year. We will strive to further improve the Group's efficiency in every aspect of its operations and seek new development projects. The strategy does not involve any acquisitions but we will closely watch the situation on the market and react accordingly – said Dariusz Krawczyk, President of the Board of Directors of CIECH.

Table 2. Results of CIECH Chemical Group after three quarters of 2014

PLN million3Q 20133Q 2014Δ 2014 - 2013
Revenues from sales2 7062 458-248
Gross margin47454571
Gross margin %18%22%4 pp.
EBIT %7%9%2 pp.
EBITDA %12%15%3 pp.
Normalised EBITDA36641044
Normalised EBITDA %14%17%3 pp.
Net profit6155-6



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