HALF-YEARLY REPORT
on the standalone interim financial statements of S.C. Chimcomplex S.A. Borzesti prepared in
accordance with the Order of the Minister of Public Finance no. 2844/2016 and prepared in accordance
with Annex 14 of Regulation no. 5/2018 issued by the Financial Supervisory Authority
for the six-month period ending on 30 June 2023
Overview of the nature of the Company's activity
Current report according to
Date of report
Company name
Registered office
Telephone/fax number
Website
Unique registration code with the JRB
Serial No in Reg. of Commerce
Subscribed and paid-in share capital
The main characteristics of securities
The regulated market on which the issued securities are traded
The accounting standard applied:
ASF Regulation. No 5/2018 on issuers of financial instruments and market operations
August 31, 2023
CHIMCOMPLEX SA Borzeşti
Str. Industriilor, nr.3, Oneşti, Bacău county, Romania
0234/302100; 0234/302102
http://www.chimcomplex.com
ir@chimcomplex.com
RO960322
J04/493/1991
304.907.851 lei
Nominative shares, dematerialized, whose records are kept by the Central Depository SA Bucharest Nominal value, lei/share: 1 leu/share
Number of shares: 304,907,851
BVB, standard category, symbol CRC
Order of the Minister 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.
The activity that holds the largest share in the income achieved by the company in January-June 2023, according to NACE coding, is 2014 - manufacture of other basic organic chemicals.
The separate financial statements of S.C. CHIMCOMPLEX S.A. BORZEȘTI (the "Company") on and for the period ended 30 June 2023 were prepared in accordance with IAS 34 Interim Financial Reporting using the going concern principle.
CHIMCOMPLEX S.A. BORZEŞTI | |
St. Industriilor nr. 3, Oneşti, jud. Bacau, Romania | Reg. J04/493/1991, unique code 960322 |
Phone 0234/302.250; Fax 0234/302.102 | Subscribed and paid-in share capital: 304907851 RON |
Email: office@chimcomplex.com | Account: RO60BUCU1111215962132 |
Web: www.chimcomplex.com | ALPHA BANK BUCHAREST |
RO2021.055.061Q RO2021.055.061E RO2018.055.061 |
Elements of overall evaluation
As of June 30, 2023, the share capital is worth RON 304,907,851, representing 304,907,851 shares (as of December 31, 2022 the same number) with a nominal value of RON 1 per share.
The shareholding structure is as follows: | ||||
30 June 2023 | Ordinary shares | Percentage holding | ||
Shareholders | ||||
CRC Alchemy Holding BV | 259.151.301 | 84,99% | ||
AAAS | 27.305.181 | 8,96% | ||
Legal entities | 14.363.583 | 4,71% | ||
Individuals | 4.087.786 | 1,34% | ||
Total | 304.907.851 | 100% |
The condensed separate interim financial statements for the six-month period ended 30 June 2023 are not audited and have not been reviewed by an external auditor.
Key events from January to June 2023
- On 27 April 2023, the Extraordinary General Meeting of Shareholders (AGEA) approved the coverage of the carrying forward accounting loss from 2022 arising from the application of IAS 29, with the full amounts recorded in the account "Share capital adjustments" (account in which the value of RON 886,083,318 arising from hyperinflation was recorded).
- On April 27, 2023, the Extraordinary General Meeting of Shareholders (AGEA) approved the Income and Expenditure Budget of Chimcomplex Borzești for the financial year 2023, with investments estimated at EUR 116.5 million.
- At the General Meeting of Shareholders on June 21, 2023, the shareholders of Chimcomplex SA Borzesti approved the distribution of dividends for the financial year 2022 in a gross amount of RON 27 million (gross dividend per share amounting to RON 0.088551) to be paid starting July 28, 2023.
- At the OGMS of July 31, 2023, the shareholders approve the appointment of 6 statutory members to the Board of Directors of Chimcomplex SA Borzești, starting with 01.08.2023, taking into account the expiration of the mandates of the existing directors and the co-optation of new directors.
CHIMCOMPLEX S.A. BORZEŞTI | |
St. Industriilor nr. 3, Oneşti, jud. Bacau, Romania | Reg. J04/493/1991, unique code 960322 |
Phone 0234/302.250; Fax 0234/302.102 | Subscribed and paid-in share capital: 304907851 RON |
Email: office@chimcomplex.com | Account: RO60BUCU1111215962132 |
Web: www.chimcomplex.com | ALPHA BANK BUCHAREST |
RO2021.055.061Q RO2021.055.061E RO2018.055.061 |
Financial aspects
The financial results of the company in the period January - June 2023 compared to the period January - June 2022 are presented in the table below:
Economic and financial | 6 MONTHS | 6 MONTHS | Differences | |||||||||||
2023 | 2022 | % | ||||||||||||
indicators | ||||||||||||||
thousand lei | thousand lei | thousand lei | ||||||||||||
1 | 2 | 3 | 4 = 2-3 | 5=4/3*100 | ||||||||||
Turnover | 790,334 | 1,210,211 | -419,877 | -34.7 | ||||||||||
Operating income | 757,759 | 1,318,652 | -560,894 | -42.5 | ||||||||||
Operating expenses | 678,868 | 1,129,395 | -450,527 | -39.9 | ||||||||||
Operating result | 78,891 | 189,257 | -110,367 | -58.3 | ||||||||||
Financial result | -17,393 | -5,572 | -11,821 | * | ||||||||||
Income tax expenses | 11,846 | 31,535 | -19,689 | -62.4 | ||||||||||
Deferred tax revenue | 0 | 1,480 | -1,480 | -100.0 | ||||||||||
Net result | 49,652 | 153,630 | -103,979 | -67.7 | ||||||||||
Performance analysis
The company managed in the first half of 2023 to achieve an operating profit margin of 10% despite the reduction in turnover compared to the same period of the previous year generated by maintaining the downward trend of consumption started in the second half of 2022, which we will detail below.
The margin was eroded by operating at lower capacity, especially with the sections that consume electricity and natural gas, the company correlating production with the sales trend on the profile market.
The negative net financial result between January and June 2023 was mainly influenced by the increase in interest expenses following the increase in the EURIBOR variable margin and loans contracted in the last 12 months. Exchange differences related to the revaluation of loans also had a significant influence.
We would like to draw attention to the efforts made by the company's management to reduce costs with utilities and main raw materials in H1 2023, as highlighted in the table below.
CHIMCOMPLEX S.A. BORZEŞTI | |
St. Industriilor nr. 3, Oneşti, jud. Bacau, Romania | Reg. J04/493/1991, unique code 960322 |
Phone 0234/302.250; Fax 0234/302.102 | Subscribed and paid-in share capital: 304907851 RON |
Email: office@chimcomplex.com | Account: RO60BUCU1111215962132 |
Web: www.chimcomplex.com | ALPHA BANK BUCHAREST |
RO2021.055.061Q RO2021.055.061E RO2018.055.061 |
The average purchase prices for the main raw material (propylene), natural gas and electricity decreased in the first 6 months of 2023 compared to 6 months 2022, as shown in the chart below:
Evoluție preț propilenă / utilități (eur/UM) | |||||||
6M (2023 vs 2022) | |||||||
1,400 | |||||||
1,200 | |||||||
1,000 | |||||||
800 | |||||||
1,274 | |||||||
600 | |||||||
400 | |||||||
747 | 169 | ||||||
200 | 104 | ||||||
55 | 130 | ||||||
0 | |||||||
Propylene (to) | Methane Gas (eur/Mwh) | Electricity (eur/Mwh) | |||||
6M 2023 | 6M 2022 | ||||||
The company ended the first semester with a net profit of RON 49.65 million.
Analyzing the physical production by product categories achieved in the first semester of 2023 compared to the first semester of 2022, we find a decrease especially for chlorosodium and polyether polyols. The market for these products was affected in the first 3 months of the year by significant volumes imported from non-European areas, especially China and the Middle East. This phenomenon occurred at the end of 2022 amid rising prices of chlorosodium products in the Mediterranean and has moderated significantly since April 2023 as a result of lower sales prices amid lower production costs.
Completed | 6M 2023 | 6M 2022 | Differences | |||||
productions | ||||||||
% | ||||||||
-Tons- | -Tons- | -Tons- | ||||||
Chlorosodium | 163,151 | 205,185 | -42,034 | -20% | ||||
Propenoxide | 37,094 | 50,194 | -13,100 | -26% | ||||
Polyols | 43,408 | 58,842 | -15,434 | -26% | ||||
Plasticizers | 1,585 | 9,302 | -7,717 | -83% | ||||
Inorganic chlorides | 4,328 | 6,565 | -2,238 | -34% | ||||
Methylamines | 684 | 1,127 | -443 | -39% | ||||
Total | 250,250 | 331,215 | -80,965 | -24% | ||||
In the first semester of 2023, the company mainly produced and delivered two product categories:
- Polyols - polyethers with a share of 47.6% in total sales;
- Chlorosodium products with a share of 48.6% in total sales.
CHIMCOMPLEX S.A. BORZEŞTI | |
St. Industriilor nr. 3, Oneşti, jud. Bacau, Romania | Reg. J04/493/1991, unique code 960322 |
Phone 0234/302.250; Fax 0234/302.102 | Subscribed and paid-in share capital: 304907851 RON |
Email: office@chimcomplex.com | Account: RO60BUCU1111215962132 |
Web: www.chimcomplex.com | ALPHA BANK BUCHAREST |
RO2021.055.061Q RO2021.055.061E RO2018.055.061 |
Chimcomplex focused its activity on polyols/polyethers and caustic soda sectors, which are the most profitable.
Sales finished goods structure 6M_2023 %
15%
47%
37%
Sales finished goods structure 6M_2022 %
17%
50%
33%
Polioli Soda Others
Polioli Soda Others
The chlorosodium products marketfaced a tumultuous year in 2022 and was impacted by Russia's invasion of Ukraine. This led to skyrocketing oil and gas prices just as the market was starting to stabilise following the pandemic.
The main lye-consuming industries (alumina, pulp and paper, detergents, water treatment, chemical synthesis) reacted in correlation with demand that depreciated from month to month.
Some alumina producers (customers of chlorosodium products) have closed or reduced their operating rates to levels between 20 and 40 %. Alum Tulcea in Romania closed in July 2022 and did not restart in 2023, Svilocelll in Bulgaria reduced its activity from February 2023 to September 2023, Alumina Zvornik in Bosnia and Herzegovina due to lack of ore reduced its activity to 20%.
The spot price of caustic soda amounted to EUR 1500/dmt in December 2022, after which, from January 2023, the decline began, generated on the one hand by significant volumes imported from China, Egypt, Saudi Arabia, etc., but also due to the reduction of utility costs (and consequently also production costs) in the EU area.
The evolution of caustic soda quotations according to ICIS in 2023 is shown below:
Caustic Soda | Caustic Soda | Caustic Soda | |
Da ta | Price FOB MED | Price FOB MED | Price FOB MED |
monthly | quaterly | year | |
USD/dmt | USD/dmt | USD/dmt | |
Jan. 2023 | 604 | 532 | 447 |
Feb. 2023 | 533 | ||
Mar. 2023 | 459 | ||
Apr. 2023 | 446 | 409 | |
Mai 2023 | 415 | ||
Jun. 2023 | 365 |
CHIMCOMPLEX S.A. BORZEŞTI | |
St. Industriilor nr. 3, Oneşti, jud. Bacau, Romania | Reg. J04/493/1991, unique code 960322 |
Phone 0234/302.250; Fax 0234/302.102 | Subscribed and paid-in share capital: 304907851 RON |
Email: office@chimcomplex.com | Account: RO60BUCU1111215962132 |
Web: www.chimcomplex.com | ALPHA BANK BUCHAREST |
RO2021.055.061Q RO2021.055.061E RO2018.055.061 |
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Chimcomplex Borzesti SA published this content on 01 September 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 September 2023 05:41:04 UTC.