Forchem Oyj - Interim report (Q1 and Q3)

FORCHEM OYJ'S Q1.2017 BONDHOLDER REPORT

Interim report
Free for publishing 31.05.2017, hour 12:00


FORCHEM OYJ'S Q1.2017 BONDHOLDER REPORT

Year  has started as expected and operatively there have not been big changes in
Q1  compared to  the last  quarters of  2016. Group's revenue  for Q1 has been €
33,0 million  and  operating  profit  has  been  € 5,4 million. Profitability at
EBITDA-level has remained at 21 %.

There  are some normal seasonality in the  demand for TOR and TOFA but generally
the demand for Forchem's main products have been very robust. Margin levels have
also  been in accordance with the expectations.  The increase in crude oil price
at the end of 2016 has increased Forchem's CTO cost for energy related contracts
which  has  also  had  a  negative  effect on Forchem's margins. However, during
Q1/2017, the increase has subsided, and the prices have even slightly decreased.
After  all, the increase in  crude oil price may  put some pressure on Forchem's
refining margin also in the future, if product prices stay soft.

Due  to the increase in crude oil  price, oil field operations have activated in
US.  Hence, US has increased  the demand for CTO  based products in that segment
and  regarding both  CTO and  TOFA, market  is not  anymore as  long as  it was.
However, CTO availability is good at the moment but might change due to increase
in crude oil price in the future.

This release is a summary of Forchem Oyj's bondholder report concerning Q1/2017.
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 Q1.2017.pdf