Nynas Naps Reports Excellent 4Q
Nynas Naphthenics segment reported on February 23, 2018 that its sales revenue and margins during the fourth quarter 2017 showed an increase compared to the same period in 2016, with USD margins well above expectations. The overall sales volumes during the fourth quarter increased by 3 per cent compared to the equivalent period in 2016. For 2017 as a whole, sales revenues and margins were well above the level seen in 2016. Nynas Naphthenics segment overall 2017 sales volumes were restricted by crude supply constraints but an increase of 3 per cent could still be achieved. This is the highest volume ever, with record sales achieved in EMEIA (Europe, Middle East, India and Africa) and APAC (Asia Pacific), however with reduced sales in the Americas, being the region most heavily impacted by the supply constraints. EMEIA sales volumes in the fourth quarter were below expectations, but were 2 per cent higher than the same period in 2016. Sales volumes in India set a record for a single quarter. Nynas Naphthenics segment overall for 2017, sales volumes were the highest ever and well above the level seen in 2016, with new sales records in Central Europe, Germany, India, Middle East and Poland, and with increased margins achieved compared to 2016. Sales in the fourth quarter in the Americas were below expectations, and were similar to the same period in 2016, mainly due to supply constraints. Nynas Naphthenics segment overall for 2017, sales volumes in the Americas were below expectations. APAC sales volumes in the fourth quarter were 20 per cent higher than the same period in 2016, with sales volumes in southeast Asia setting a record for a single quarter. Nynas Naphthenics segment overall for 2017, sales volumes were the highest ever and well above the level seen in 2016, with sales records in China, India and southeast Asia, and with increased margins achieved compared to 2016. Fourth quarter external sales were SEK 1,961 million compared to SEK 1,949 million in the similar 2016 quarter, affected by the weaker US dollar, but helped by slightly higher sales volumes and increased margins.
Operating result before depreciation (EBITDA) was SEK 318 (US$ 38.8) million compared to a loss of SEK 10 million in the 2016 fourth quarter. 2017 full year net sales increased to SEK 7,686 million compared to SEK 6,749 million in 2016 because of a higher oil price and increased sales volumes but were negatively impacted by the weaker US dollar. Operating result before depreciation (EBITDA) increased to SEK 807 million compared to SEK 506 million in 2016.
Corporately, Nynas increased its sales volumes by 5 per cent in the fourth quarter and by 7 per cent for the full year, compared to 2016. The operating result for the quarter (EBITDA) amounted to SEK 396 million compared to 44 million in the fourth quarter in 2016 and for the full year to SEK 1,218 million compared to SEK 1,009 million in 2016.
"The overall business environment was good in 2017 with sales revenues and margins for naphthenic specialty oils well above the level seen in the previous year. Our bitumen sales also had a strong development in key markets," commented Gert Wendroth, President and CEO of Nynas AB.