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Change of the forecast of some financial results of the CIECH Group in 2022.

Current Report No.:  43/2022

Date of preparation: 24.11.2022

Abbreviated name of the Issuer: CIECH S.A.

Legal basis: Art. 17.1 of the MAR – inside information

Subject: Change of the forecast of some financial results of the CIECH Group in 2022.

 

Text of the report: 

The Management Board of CIECH S.A. (the “Company” or “Issuer”) herewith informs about the change in the forecast of selected financial results of the CIECH Group in 2022, as presented in its Current Report No. 12/2022 of 19.04.2022.

The forecast published on 19.04.2022 assumed that in 2022 the CIECH Group would generate:

  • consolidated sales revenues: ranging between PLN  4,300 million and PLN 4,500 million;
  • consolidated normalised EBITDA: ranging between PLN  740 million and PLN 780 million.

The new forecast of selected financial results of the CIECH Group in 2022 (the “Forecasted Results”) is as follows:

  1.  consolidated sales revenues: ranging between PLN  5.250 million and PLN 5.450 million;
  2. consolidated normalised EBITDA: ranging between PLN 950 million and PLN 990 million.

The above means that the Company plans to achieve: i) consolidated sales revenues for 2022 higher by approximately 19% and ii) consolidated normalised EBITDA higher by approximately 24.5% compared to the upper ranges of the original forecast announced on 19.04.2022.

The announcement of the Forecasted Results follows the revision of the assessment of the current market as well as operational and financial situation of the CIECH Group, in particular due to:

  • strong prospects in the fourth quarter in the soda segment due to:

    • continued strong demand for soda ash and purified soda, allowing to reflect the increase in the cost of raw materials,
    • the first positive effects of the initiatives undertaken in the field of energy transformation and optimization of production processes and
    • the possibility of maintaining the EBITDA(Z) margin y/y in the fourth quarter on soda products due to adequate hedging of the prices of the main production raw materials.

  • continuation of the good results achieved in the previous quarters in the silicates segment and better-than-expected commercialization of new, energy-saving production capacities and the use of pricing formulas to hedge prices in the face of rising raw material costs, which should result in a significantly higher EBITDA(E) margin (y/y) in the fourth quarter.

The achievement of the forecast will be monitored by the Company on an ongoing basis.

 

Legal basis: Article 17.1 of the Regulation of the European Parliament and of the Council (EU) No. 596/2014 of 16 April 2014 on Market Abuse (the Market Abuse Regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC (Official Journal of the European Union L No. 173, p. 1).

 

Signatures of persons representing the Company:

Dawid Jakubowicz – President of the Management Board

Jarosław Romanowski – Member of the Management Board

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