2016-10-25 07:30:33 CEST
2016-10-25 07:30:33 CEST
REGLAMENTUOJAMA INFORMACIJA
Kemira Oyj - Interim report (Q1 and Q3)
Kemira Oyj's Interim Report January-September 2016: Profitability improvement continued, operative EBITDA outlook confirmed, revenue outlook reduced
Kemira Oyj
Stock Exchange Release
October 25, 2016 at 8.30 am (CET+1)
Kemira Oyj's Interim Report January-September 2016: Profitability improvement
continued, operative EBITDA outlook confirmed, revenue outlook reduced
This is a summary of the January - September 2016 Interim report. The complete
January - September 2016 Interim report with tables is attached to this release
and available at www.kemira.com/investors.
Third quarter:
* Revenue decreased 5% to EUR 596.3 million (625.1) due to lower sales prices
and continued challenging market impacting Oil & Mining compared to prior
year. Revenue in local currencies, excluding acquisitions and divestments,
decreased 4%.
* Operative EBITDA increased 3% to EUR 80.8 million (78.2) driven by improved
gross margin and lower fixed costs. Operative EBITDA margin improved to
13.6% (12.5%).
* Earnings per share were EUR 0.16 (0.17).
January-September:
* Revenue remained at approximately prior year level and was EUR 1,766.8
million (1,772.9) as decline in sales prices and challenging market in Oil &
Mining offset the growth from acquisitions and increased sales volumes.
Revenue in local currencies, excluding acquisitions and divestments,
decreased 2% as volume growth was not able to offset declining sales
prices.
* Operative EBITDA increased 6% to EUR 232.5 million (219.3) as a result of
improved gross margin and sales volume growth. Operative EBITDA margin
improved to 13.2% (12.4%).
* Earnings per share increased 9% to EUR 0.49 (0.45).
* Outlook (changed): Kemira expects its revenue to be at approximately prior
year level (previously: "to increase") and operative EBITDA to increase in
2016 compared to 2015
Kemira's President and CEO Jari Rosendal:
"We continued to improve our operative EBITDA in Q3 while organic revenue growth
in today's market situation is a challenge. Group's operative EBITDA margin
improved to 13.6%, partly helped by normal seasonality. Our organic growth was
negative due to lower sales prices and decline in Oil & Mining market. We also
experience a currency exchange headwinds. As a sum of these elements, we now
expect the full-year revenue to be at approximately prior year level. There is
no change to the profitability outlook, operative EBITDA is expected to increase
in 2016.
Pulp & Paper continued its strong improvement in profitability. Operative EBITDA
margin improved to 14.2% from 12.3%. Revenue development was below expectations
due to lower sales prices leading to a 4% decline in revenue in local
currencies, excluding acquisitions and divestments.
In Oil & Mining, the market situation in shale oil & gas has improved somewhat
as the segment's volume growth was 11% compared to the second quarter of 2016
while prices remain under pressure. However, the profitability improvement comes
with a lag as the market remains competitive and estimated growth in Chemical
Enhanced Oil Recovery has a dilutive impact on the margin during the ramp-up
phase.
Municipal & Industrial also was impacted by lower sales prices but operative
EBITDA margin reached again more than 16%. This is an excellent level, partly
supported by normal seasonality.
I am satisfied with the continued profitability improvement. We have again taken
another step towards reaching our mid- to long-term target of 14-16% for
operative EBITDA."
KEY FIGURES AND RATIOS
Jan-Sep Jan-Sep Jan-Dec
EUR million Jul-Sep 2016 Jul-Sep 2015 2016 2015 2015
-------------------------------------------------------------------------------
Revenue 596.3 625.1 1,766.8 1,772.9 2,373.1
-------------------------------------------------------------------------------
Operative EBITDA 80.8 78.2 232.5 219.3 287.3
-------------------------------------------------------------------------------
Operative 13.6 12.5 13.2 12.4 12.1
EBITDA, %
-------------------------------------------------------------------------------
EBITDA 78.3 74.8 218.7 206.1 263.8
-------------------------------------------------------------------------------
EBITDA, % 13.1 12.0 12.4 11.6 11.1
-------------------------------------------------------------------------------
Operative EBIT 46.5 46.1 134.0 130.0 163.1
-------------------------------------------------------------------------------
Operative EBIT, 7.8 7.4 7.6 7.3 6.9
%
-------------------------------------------------------------------------------
EBIT 43.7 42.7 117.8 114.8 132.6
-------------------------------------------------------------------------------
EBIT, % 7.3 6.8 6.7 6.5 5.6
-------------------------------------------------------------------------------
Finance costs, -6.9 -8.2 -13.2 -25.0 -30.8
net
-------------------------------------------------------------------------------
Profit before 36.8 34.5 104.7 90.1 102.1
taxes
-------------------------------------------------------------------------------
Net profit for 27.3 27.1 79.7 72.8 77.2
the period
-------------------------------------------------------------------------------
Earnings per 0.16 0.17 0.49 0.45 0.47
share, EUR
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Capital 1,711.5 1,601.6 1,711.5 1,601.6 1,659.5
employed*
-------------------------------------------------------------------------------
Operative ROCE* 9.8 10.6 9.8 10.6 9.8
-------------------------------------------------------------------------------
ROCE*, % 7.9 10.0 7.9 10.0 8.0
-------------------------------------------------------------------------------
Cash flow from
operating 85.0 80.9 168.2 135.0 247.6
activities
-------------------------------------------------------------------------------
Capital
expenditure 48.5 49.1 123.2 120.4 181.7
excl.
acquisition
-------------------------------------------------------------------------------
Capital 48.5 55.5 121.3 241.8 305.1
expenditure
-------------------------------------------------------------------------------
Cash flow after
investing 36.9 27.6 84.4 -103.6 -53.8
activities
-------------------------------------------------------------------------------
Equity ratio, % 45 46 45 46 46
at period-end
-------------------------------------------------------------------------------
Equity per 7.48 7.55 7.48 7.55 7.76
share, EUR
-------------------------------------------------------------------------------
Gearing, % at 58 59 58 59 54
period-end
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Personnel at 4,843 4,692 4,843 4,692 4,685
period-end
-------------------------------------------------------------------------------
*12-month rolling average (ROCE, % based on the EBIT)
Kemira provides certain financial performance measures (alternative performance
measures) on non-GAAP basis. Kemira believes that alternative performance
measures, like operative EBITDA and operative EBIT, followed by Kemira
management, provide useful and more comparable information of its operative
business performance.
Kemira's alternative performance measures should not be viewed in isolation to
the equivalent IFRS measures and alternative performance measures should be read
in conjunction with the most directly comparable IFRS measures. Definitions of
the alternative performance measures can be found in the Definitions of the key
figures in this report as well as at www.kemira.com >Investors > Financial
information.
MID- AND LONG-TERM FINANCIAL TARGETS (UPDATED ON SEPTEMBER 14, 2016) AND OUTLOOK
FOR 2016 (CHANGED)
Kemira updated its mid- to long-term financial targets prior to the company's
Capital Markets Day, emphasizing its continued goal of above-the-market revenue
growth with improving profitability. The company has progressed well towards the
previous targets of EUR 2.7 billion in revenue and operative EBITDA margin of
15%, despite the weak developments in oil & gas markets, which started in 2015.
Kemira aims at above-the-market revenue growth with operative EBITDA margin of
14-16%. The gearing target is maintained at below 60%.
Main drivers for Kemira's profitable growth are:
* In Pulp & Paper: above-the-market growth arising from new Total Chemistry
Management (TCM) contracts and bleaching chemical capacity additions, as
well as synergy capture from acquisitions
* In Oil & Mining: profitable growth in newer applications such as Chemical
Enhanced Oil Recovery (CEOR) and Oil Sands, as well as potential oil market
recovery
* In Municipal & Industrial: increasing revenue from Advanced Water Treatment
(AWT) applications, as well as continuing growth in current business driven
by selective geographic expansion
* Group-wide operational efficiencies with new BOOST program.
Kemira has launched an operational excellence program 'BOOST' to improve
efficiency. Estimated annual savings run-rate from the program are EUR 20-30
million in 2-3 years. BOOST will focus on supply chain process optimization and
improved asset utilization.
The integration of the acquired AkzoNobel paper chemicals business has
progressed better than expected and Kemira has raised the synergy target from
EUR 15 million to EUR 20 million.
In addition, Kemira continues to evaluate acquisition opportunities to enhance
profitable growth.
Outlook for 2016 (changed)
Kemira continues to focus on profitable growth. Kemira expects its revenue to be
at approximately prior year level (previously: "to increase") and operative
EBITDA to increase in 2016 compared to 2015.
Kemira expects its capital expenditure, excluding acquisitions, to be around EUR
200 million in 2016.
Helsinki, October 24, 2016
Kemira Oyj
Board of Directors
FINANCIAL CALENDAR 2016 AND 2017
Financial Statements Bulletin 2016 February 8, 2017
Interim report January-March 2017 April 26, 2017
Interim report January-June 2017 July 21, 2017
Interim report January-September 2017 October 25, 2017
The Annual General meeting will be held on March 24, 2017 at 10.00 Marina
Congress Center, Helsinki.
PRESS AND ANALYST CONFERENCE AND CONFERENCE CALL
Kemira will arrange a press conference for analysts, investors and media
starting at 10.30 am (8.30 am UK time) at GLO Hotel Kluuvi, Kluuvikatu 4, 2nd
floor, Helsinki. In the conference, Kemira's President and CEO Jari Rosendal and
CFO Petri Castrén will present the results. The press conference will be held in
English and will be webcasted at www.kemira.com/investors. The presentation
material and the webcast recording will be available on the above mentioned
company website.
You can attend the Q&A session via a conference call. In order to participate in
the call, please dial ten minutes before the conference begins:
FI: +358 9 7479 0361
SE: +46 8 5033 6574
UK: +44 203 043 2002
US: +1 719 4572086
Conference id: 7817960
For more information, please contact
Kemira Oyj
Olli Turunen, Vice President, Investor Relations
Tel. +358 10 862 1255
Kemira is a global chemicals company serving customers in water-intensive
industries. We provide expertise, application know-how and chemicals that
improve our customers' water, energy and raw material efficiency. Our focus is
on pulp & paper, oil & gas, mining and water treatment. In 2015, Kemira had
annual revenue of EUR 2.4 billion and around 4,700 employees. Kemira shares are
listed on the Nasdaq Helsinki Ltd.
www.kemira.com
[]
© 2024 Nasdaq, Inc. All Rights Reserved |
| Slapukai |