Bucharest Stock Exchange-listed chemical group Chimcomplex (BVB: CRC), the largest producer of polyols in Eastern Europe, reported its turnover rose to RON 612 mln (EUR 124 mln) in the first quarter of the year, 23.2% more compared to the same period last year.

However, its profit shrunk by 38.5% to RON 72 mln (EUR 14.6 mln). The prices of the outputs did not increase at the same rate as the costs of raw materials and utilities, negatively affecting profitability, the company explained.

A general overhaul was carried out at the group's main industrial platform Borzesti, and the gas-intensive installations on the Râmnicu Vâlcea platform (formerly Oltchim) were temporarily closed in order to limit the adverse effects. As a result, the production diminished.

Despite the adverse conditions, the group's management maintains confidence and plans more investments.

"The first quarter shows that our business model is a successful one, even in times of crisis. Our commercial dynamics remain very good. The refinancing carried out in 2021 was done at the right time, which resulted in a 6-fold decrease in financial expenses," said Victor Avram, CEO of Chimcomplex.

In the next period, the company pursues development by continuing the strategic investment program started in 2021 and aims to achieve efficiency and stability from the energy point of view.

The investment plan for the current year includes, in particular, the completion of the CHP 49MW cogeneration on the industrial platform of Râmnicu Vâlcea for the production of electricity, steam and hot water.

Another project regards the completion of the thermal boiler from Râmnicu Vâlcea for steam production necessary for technological installations.

Starting January 17, 2022, the shares of Chimcomplex SA Borzeşti are freely traded on the Standard category of the BVB, where its capitalisation reached RON 5.8 bln (EUR 1.16 bln).

(Photo courtesy of the company)

andrei@romania-insider.com