MOSCOW (MRC) -- Kemira's net profit surged to EUR23.8 mln in the fourth quarter 2020 amid higher margins, despite a drop in sales, said the Finland-based chemicals firm.
The company's sales were EUR605.6 mln in Q4 2020 versus EUR657.7 mln in Q4 2019, down by 8% year on year. In 2020 sales were EUR2,427 mln versus EUR2,659 mln in 2019 down by 9% year on year.
Kemira's EBITDA stated EUR91.2 mln in Q4 2020 versus EUR69.6 mln in Q4 2019, up by 31% year on year. In 2020, this figure was EUR413 mln versus EUR382 mln in 2019, up by 8% year on year.
Its net profit was EUR23.8 mln in Q4 2020, compared to EUR8.6 mln in Q4 2019, up by 177% year on year, whereas in 2020, this figure was EUR138 mln versus EUR116.5 mln in 2019, up by 18% year on year.
Kemira's operative EBITDA is expected to be at the same or "at a slightly (less than 5%) lower level than in 2020 (EUR43 mln)", the company said.
"COVID-19 pandemic continues to cause uncertainty in 2021, but Kemira's end market demand is expected to recover gradually from 2020 in line with forecasted economic growth. Demand, particularly in the oil and gas market, is expected to recover," it added.
As MRC informed earlier, in September 2020, Kemira signed a multi year extension of its polymer supply agreement with Ithaca Energy. Kemira said it had signed a multiyear extension to its polymer supply agreement with Ithaca Energy (Aberdeen, UK). The agreement extends the contract between the two companies, signed in 2018, covering the supply of polymers to enhance oil extraction performance at one of the assets operated by Ithaca Energy in the UK North Sea.
Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,220,640 tonnes in 2020, up by 2% year on year. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, polypropylene (PP) shipments to the Russian market reached 1 240,000 tonnes in 2020 (calculated using the formula: production, minus exports, plus imports, excluding producers' inventories as of 1 January, 2020). Supply of exclusively PP random copolymer increased.
MRC