Forchem Oyj - Half Year financial report

FORCHEM OYJ'S Q2.2017 BONDHOLDER REPORT

Half year financial report
Free for publishing 31.08.2017, hour 12:00



FORCHEM OYJ'S Q2.2017 BONDHOLDER REPORT

Q2  has been largely in accordance with our expectations and operatively in line
to the previous quarters. Group's revenue for Q2 is € 31,0 million and operating
profit  €  5,9 million.  Group's  year-to-date  revenue  is  €  63,9 million and
operating  profit  €  11,4 million.  In  Q2  profitability  at  EBITDA-level has
increased  from 21 % to 23 % mainly due to favorable sales mix and robust demand
for Forchem's main products, TOR and TOFA.

Product  margins have been also as expected  but the increase in crude oil price
at  the end of 2016 has increased Forchem's raw material cost for energy related
contracts.  This has caused a  slight negative effect on  the margins during the
first  half of the year (H1). After all,  in H1 crude oil price has decreased to
some  degree, which, in turn, should help Forchem's cost pressure related to raw
materials  in coming months. However, the potential future increase in crude oil
price may put some pressure on Forchem's refining margin, if product prices stay
soft.

Due  to increased  activity in  oil field  operations, during  H1 demand for CTO
based  products (specially  CTO and  TOFA) in  that segment  has been also quite
high.  Nevertheless,  at  the  moment  CTO  availability is still good but might
change due to potential increase in crude oil price and strengthening demand for
CTO in the future.

Streamlining  operations  within  group  are  ongoing.  Working capital is still
relatively high due to sales receivables.

This release is a summary of Forchem Oyj's bondholder report concerning Q2/2017.
The  report is  based on  the terms  and the  conditions of  the bond. The whole
report  including the tables is attached to  this release and it is available at
www.forchem.com/investor_area.


For more information:

Forchem Oyj
Henrik Lindegrén, CFO, p. +358 44 032 1075, henrik.lindegren@forchem.com



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Attachments:

Forchem Bondholder Report Q2.2017.pdf