Poland's Grupa Azolty reports a net loss in Q1 amid high gas prices
The largest Polish chemical company, Grupa Azoty posted a similar net loss to that of last year, due to high natural gas costs and the competition from Russian and Belarussian fertilizer imports.
The net loss for the company in the first quarter was 288.2 millions zlotys, down from 295 million in 2024.
Why it's important
According to data from the company, Grupa Azoty was the second largest producer of mineral fertilisers in the European Union behind Norway's Yara.
CONTEXT
The company faces financial challenges since late 2022 due to the high price of gas, increased competition with cheaper Russian and Belarusian fertiliser imports, as well as cost overruns for its Polimery Police project.
Grupa Azoty is restructuring debts, cutting costs, increasing sales efforts and exploring the possibility of selling assets, such as Compo Expert, its German fertilizer company.
By the Numbers
The operating loss for the first quarter of 2024 increased to 291.8 millions zlotys. This is a significant increase compared to a loss in 2024 of 259.6million zlotys. The quarter's revenues rose by around 12%, to 3.82 billion Zlotys. (Reporting and editing by Hugh Lawson; Rafal Nowak)
(source: Reuters)
