Results first half 2020
Regulated information - 24 September 2020 –
07:50
Headlines - Financial
results
During the first semester of 2020 Campine
achieved a revenue of 82,7 mio € (2019: 102,9 mio €).
Profit after taxes amounted to 103 K€ (2019: 2,33 mio €). The
reduction in sales and profit is entirely related to the impact of
the Corona pandemic. Volumes as well as metal prices were on
average substantially lower compared to the same period in
2019.
Strict cost control and some ambitious
initiatives helped Campine to navigate quite well through this
crisis. “The company saved 1,5 mio € in expenses in the first
semester and seized several opportunities to limit the volume
loss.” explains CEO De Vos “We also managed to advance our yearly
maintenance shutdown and carry it out with more own personnel. With
strict cash management and a better spread of our investments, we
managed to retain our strong 2019 year-end balance sheet” he
concludes. With a solvency ratio of 54%, Campine does not expect
financing problems in the near future.
To minimise the Covid-19 contagion risks for its
employees, Campine implemented a large number of measures. Campine
used several government measures, such as temporary unemployment,
to counterbalance the lower market demands. The different
manufacturing units were alternately closed to keep the efficiency
as high as possible. Several expenses were avoided or delayed
whenever possible. All planned investments will be carried out, but
some will be rescheduled in time. Some investment projects were
delayed because some subcontractors were unable to continue their
work seen the Covid pandemic.
Performances per division
Division Specialty Chemicals
Market and Operations
- The first effects of the Covid pandemic were experienced early
February when antimony metal prices started to rise due to fears of
shortages on the world market. The centre of the antimony
production is found in China’s Hunan province, which is adjacent to
Wuhan (Hubei province) where the pandemic originated. Fear for
shortages helped the antimonytrioxide demand to remain at normal
levels during the first quarter. Only early May the impact became
clear in our Specialty Chemicals division, with customers in some
market segments reducing their demand by 30 to 40%. This decrease
in demand ultimately lead to a fast price decline of antimony raw
materials.
- Sales revenue decreased to 34,2 mio € (-22% versus 2019) as a
result of lower volumes (-10% compared to 2019) and lower sales
prices of our antimony products.
- Thanks to cost savings and better operational efficiency, a
positive operational result of 1.077 K€ was reached (compared
to a break-even results of 10 K€ in 2019).
Division Metals Recycling
Market and Operations
- We experienced the impact of the Corona crisis immediately from
early March onwards in our lead unit, where more than 80% of our
products are being used for batteries, with the automotive sector
as largest segment. The shutdown of many assembly lines throughout
Europe caused the demand for lead to drop dramatically. Volume
reductions at some industrial customers of 50 to 60% were no
exception. Despite this we were able to keep sales volumes on
decent levels thanks to seizing new opportunities at new customers
and with different metal traders. By the end of April the supply
chain of our main raw material – scrap batteries – dried up
completely; due to forced closures of car workshops and scrap
dealers, scrap batteries no longer reached our suppliers. We
therefore decided to bring forward our yearly maintenance shutdown
from July to May.
- The Metals Recovery activities, in which we recycle other
metals, was not impacted by the Covid pandemic.
- Sales revenue decreased to 54,2 mio € (-19% tov 2019) as a
result of lower volumes (-12% compared to 2019) and lower LME lead
prices, which are the basis of our lead products sales prices. The
average LME lead prices during the first half of 2020 were
substantially lower than in the first semester of last year: 1.597
€/ton versus 1.735 €/ton in 2019.
- The operational result was a loss of -970 K € in comparison
with a profit in 2019 of 3.168 mio €. Beside lower volumes and
lower sales prices, we additionally had the shift of the full
maintenance shutdown expenses into our first year half in
2020.
Outlook 2020
Making a prognosis for the full year 2020
remains very difficult considering the volatile and uncertain
market conditions. If however raw material prices retain their
rise, we expect to close the year with profit.
Demand for our Specialty Chemicals products is
restoring very slowly. We expect to reach pre-Covid levels only by
the last quarter of 2020. Antimony metal prices are on the rise
since early August, mainly related to some shortages on the
antimony ore markets.
In our Metals Recycling division we reached
normal demand levels since July. This is potentially related to
temporary shutdowns at some of our regional competitors. LME lead
prices increased substantially during the summer months from a
level below 1.500 €/ton mid-May to above 1.650 €/ton and
fluctuates around a level of 1.600 €/t in the meantime.
The full interim financial report is available on our website
www.campine.com: Investors/shareholder information/financial
reports and calendar/Financial reports/interim financial report
2020.
This information is also available in Dutch. Only
the Dutch version is the official version. The English version is a
translation of the original Dutch version.
For further information you can contact Karin
Leysen (tel. no +32 14 60 15 49) (email:
Karin.Leysen@campine.com).
- 200924half year results
- 2020 interim financial report
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