Polish fertiliser maker Grupa Azoty swings to Q3 core loss as gas prices rise

Nov 6 (Reuters) - Polish chemical and fertiliser producer Grupa Azoty ATTP.WA said on Thursday its third-quarter core result turned to a loss 25 million zlotys ($6.4 million) from a profit of 391 million zlotys a year ago, as higher natural gas prices squeezed margins.

The company said in a preliminary earnings statement that third-quarter prices at the Dutch TTF hub, Europe’s gas benchmark, averaged €63.4 euros ($71) per megawatt-hour, a 95% jump on the year, as Middle East tensions and Strait of Hormuz transport limits raised the prices of energy and raw materials.

• Revenue grew 11.5% to 3.23 billion zlotys; net loss widened to 547 million zlotys from 150 million last year

• The fertiliser business posted a negative core profit margin of 7.9%, with sales volumes falling 9% as farmers held off buying amid rising prices

• Fertiliser prices rose but did not keep pace with raw material costs, as farmers’ limited purchasing power and relatively low crop prices prevented larger increases, Azoty said

• The chemicals segment margin was 16.5% as prices of all its products, notably sulphur, increased

• The plastics segment had a negative margin of 28.3% due to higher phenol prices, electricity costs and an idle polypropylene plant

• Excluding last year's one-off items linked to the polypropylene plant project, Azoty's core profit, or EBITDA, fell by 100 million zlotys

($1 = 3.9310 zlotys)

($1 = 0.8930 euros)