H&R WASAG AG posts record result for first nine months
EBITDA up 55.5% to a record high of €79.3 million
H&R WASAG AG’s operating result (EBITDA) reached an all-time high of €79.3 million in the first nine months of 2010 as revenue soared by 47.9% to €805.8 million. As well as exceeding the previous year’s nine-month figure of €51.0 million by 55.5%, this also overtook the full-year result for 2009, which totalled €65.6 million. The EBITDA margin climbed to 9.8% (Q1–Q3 2009: 9.4%). EBIT also rose 82.4%, coming in at €64.2 million (Q1–Q3 2009: €35.2 million). At €40.8 million, the consolidated net income attributable to shareholders almost doubled on the previous year (Q1–Q3 2009: €20.5 million).
“In the year to date, we have been able to profit immensely from the improved climate and boost sales volumes for key products by over 20% in the two Chemical-Pharmaceutical Segments which dominate the consolidated operating result,” said Gert Wendroth, Chief Executive Officer at H&R WASAG AG.
All segments record better operating results
With a 66.3% increase in EBITDA to €63.2 million (Q1–Q3 2009: €38.0 million), the Chemical-Pharmaceutical Raw Materials Domestic Segment once again made the largest contribution to the consolidated operating result. The Chemical-Pharmaceutical International Segment also grew its operating result considerably, posting an increase of 25.4% to €16.8 million (Q1–Q3 2009: €13.4 million).
The significantly smaller Plastics Division is still being realigned. After only breaking even during the first nine months of last year, the company generated a slight operating profit (EBITDA) of €0.2 million for January to September of 2010.
Large-scale investment on schedule
The construction work for the largest investment project in the company’s history – a new propane de-asphalting plant in Hamburg costing some €55 million – is proceeding on schedule. “In the first four months of the construction phase, 230 tonnes of steel and 1,400 cubic metres of concrete were used – impressive figures which show the huge dimensions of the project and document the positive progress of the construction work,” said Wendroth. Production is still expected to commence in the 4th quarter of 2011. The plant will enable H&R WASAG AG to further increase its exploitation of high-quality crude-oil speciality products and open up additional annual EBITDA potential in the region of €12 million to €14 million from 2012.
Positive outlook for the full year
In the Chemical-Pharmaceutical Raw Materials Division, the positive development of business continued into the early part of the 4th quarter. Thanks to the robust level of demand, the prices for many products remained at a high level. However, scheduled maintenance work at the Hamburg refinery and the falling order quantities which past experience shows can be expected towards the end of the year are leading us to anticipate a negative development in sales volumes in the 4th quarter compared with the quarter under review.
In the Plastics Division, the reorientation towards attractive growth markets such as the medical technology sector will continue to be pushed. With the previous year having produced a loss, a break-even result at operational level is the objective for the transitional year of 2010.
The for seasonal reasons forecasted lower sales volume towards the end of the year in the Chemical-Pharmaceutical Division means that it is unlikely that the outstanding consolidated operating result (EBITDA) in the 3rd quarter can be repeated in the final quarter.
However, the EBITDA guidance figure for the year as a whole will be adjusted to between €90.0 million and €100.0 million in line with general market expectations. The company had previously forecast a full-year operating result of between €85.0 million and €95.0 million. If earnings develop as well as forecast, H&R WASAG AG intends to raise its proposed dividend value for financial year 2010 over that of the previous year.
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