PCC Rokita Group reported very good consolidated results for 2020. The Group’s EBITDA for last year was PLN 332.1m (+15.6% year-on-year) and net profit PLN 117.4m (+25.8% year-on-year). Similarly, the results of the fourth quarter of 2020 reached a significantly higher level than those of the corresponding period of 2019. The Group’s EBITDA was PLN 125.2 million (an increase of 73%) and consolidated net profit reached PLN 58 million (an increase of 316%). Growth was also recorded in the fourth quarter 2020 results compared to the third quarter 2020, with EBITDA up 62% and profit up 98%.
“In 2020, the Group achieved very good results, despite volatile market conditions and the global economic slowdown”, says Wiesław Klimkowski, CEO of PCC Rokita. “Last year confirmed the effectiveness of the business diversification strategy we adopted. Part of the Group’s business recorded drops, which at the same time were compensated by very good results in other areas.”
The Group’s Polyurethanes segment, potentially the most affected by the ongoing COVID-19 pandemic, is primarily responsible for this strong performance. After a difficult second quarter, the fourth quarter ended up being the best in the segment’s history. The Polyurethanes segment’s EBITDA increased by 165% million PLN compared to 2019 and the segment generated 5.4% higher sales than in the previous year.
“Since the second half of June, the Polyurethanes production segment has recorded a significant increase in interest in polyether polyols, especially in the area of flexible foams”, says Rafał Zdon, Vice-President of the Management Board of PCC Rokita. “There was particularly increased demand for these polyols in the last quarter of last year, especially from the furniture industry. This is the main focus of the segment. Our production has not been able to keep up with demand. In addition, stock shortages in the market related to the reduction of polyether polyols production by competitors contributed to market price increases and consequently the record margins obtained from sales.”
The Chlorocarbons segment generated EBITDA in 2020 that was 36.1% lower than in 2019. Results were negatively impacted by significant declines in the prices of lye and caustic soda, which last year reached their lowest levels in more than three years.
The Group’s good results were also supported by the results of the Other Chemical Activities segment. Revenues from sales to external customers increased by 3.7%. The segment reported an increase in EBITDA of nearly 57% compared to 2019. The increase resulted mainly from record high margins and revenues. The segment owes such good results, among other things, to its consistently implemented strategy, which involves increasing the share of sales of professional products.
The year 2020 was also related to the finalisation of a project involving the construction of a pilot line for the development of new products in the Other Chemicals segment.
“The new line allows us to increase our production capacity of highly specialised phosphate products by nearly 3,000 tonnes per year”, said Wiesław Klimkowski, President of the Management Board. “These products will be dedicated to many industries, including plastics, as well as specialty lubricants.”
Significant investments also include the construction of the Centre for Innovation and Scaling of Processes, thanks to which the Group’s laboratory space will ultimately be almost tripled.
“Both of these investments will help us significantly expand our portfolio of highly specialised products, which enjoy growing interest”, adds Rafał Zdon, Vice-President of the Management Board.
It should be noted that, in terms of the Group’s main areas of activity, there is currently visibly limited availability of polyether polyols on the market, with a high level of orders still observed. In addition, reported alkali prices are still at low levels. Within the activities of the Other Chemicals segment, the Group recognises a steadily increasing interest in products, currently exceeding the production capacity of this segment.
About the Company:
PCC Rokita is a manufacturer of specialty chemicals and industrial formulations. It is one of the leading chemical companies in Poland and Europe. Since 2011, PCC Rokita has been issuing bonds introduced to trading on the regulated market of the WSE – Catalyst. The company’s shares have been listed on the WSE since 2014. PCC Rokita is a company operating within the international PCC concern headed by the PCC European Company with its registered office in Duisburg. The PCC Group is expanding internationally in the Chemicals, Energy and Logistics divisions and currently employs around 3,600 people in 18 countries.