Forchem Oyj - Interim report (Q1 and Q3)

FORCHEM OYJ'S Q3.2017 BONDHOLDER REPORT

Interim report
Free for publishing  30.11.2017, hour 12:00


FORCHEM OYJ'S Q3.2017 BONDHOLDER REPORT

During   Q3   Forchem's  performance  has  been  in  accordance  with  company's
expectations  and there are no major  operative changes compared to the previous
quarters.  Group's revenue for Q3 is €  33,0 million and operating profit € 4,2
million.  Group's year-to-date revenue is €  96,9 million and operating profit €
15,6 million.

Demand  for  Forchem's  main  products,  TOR  and  TOFA, has remained robust and
margins  have also  been as  expected: there  are no  major changes  in refining
margin  compared to H1.  However, in Q3  Forchem's profitability at EBITDA-level
has  decreased from  23 % to  17 %. The  main reasons  for the  decrease are the
regular  maintenance break  in August  and normal  seasonal cyclicality in sales
mix.

In Q3 crude oil price has risen and it will increase Forchem's raw material cost
for  energy related contracts. Furhtermore, the  increase in crude oil price has
also  expanded activity in  oil field operations,  which, in turn, raises demand
for  CTO based products. Hence, CTO market  has tightened and if crude oil price
stays  at  the  current  level  or  even  rises,  it  might put some pressure on
Forchem's margin in the future.

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

This release is a summary of Forchem Oyj's bondholder report concerning Q3/2017.
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 Q3.2017.pdf