Forchem Oyj - Financial Statement Release

FORCHEM OYJ'S Q4.2016 BONDHOLDER REPORT

Stock Exchange release
Free for publishing 28.02.2017, hour 12:00


FORCHEM OYJ'S Q4.2016 BONDHOLDER REPORT


Q4  has been operatively  very similar to  the previous quarters of 2016. Demand
for  main products has been in accordance  with our expectations, there has been
some normal seasonality in the demand for TOR and TOFA.

Margin  levels have been  also as expected:  in percentage terms  there have not
been  big changes compared to previous quarters  or last year but there has been
slight  decline of  margins in  euro per  ton due  to general price erosion. The
general  price  erosion  is  also  the  major  reason for the drop in our yearly
turnover.

However, in Q4 increase in Crude Oil price has increased our CTO cost for energy
related  contracts which has had a negative  effect on our margins. That may put
some  pressure on our refining margin also in the future, if product prices stay
soft.

Group's  revenue of the  quarter is €  24,6 million and operating  profit € 2,9
million.  The revenue for the whole year is € 109 million and operating profit €
17,6 million.

Slow-down  of oil  field operations  in the  US have  dropped the demand for CTO
based  products in that segment, which has caused  the market to be long in both
CTO and TOFA for the moment. For this reason, and normal seasonal variation, CTO
availability  is good at the moment. This  might change due to increase in Crude
Oil price.

This release is a summary of Forchem Oyj's bondholder report concerning Q4/2016.
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.

The complete Financial Statements will be published on 28 April 2017.


For more information:

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

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Viðhengi:

Forchem Bondholder Report Q4.2016.pdf