MOSCOW (MRC) -- Solvay's underlying net profit rose by 54.9% year on year in the third quarter to EUR273m, driven by stronger sales volumes and demand , said Reuters.
The company now sees free cash flow at the end of the year of around 800 million euros (USD928 million), up from previous guidance of 750 million euros which had already been upgraded in July.
"Further actions are being implemented to account for the rising raw materials, energy and logistics costs," Chief Executive Officer Ilham Kadri said in a statement. Solvay, whose products range from base chemicals such as soda ash to speciality polymers, reported third-quarter sales of 2.57 billion euros, beating a company-provided consensus of 2.41 billion euros.
Earnings before interest, tax, depreciation and amortization (EBITDA) in the quarter stood at 599 million euros, also above a consensus of 570 million euros.
The company, which makes lithium derivatives for batteries, confirmed its guidance for full-year EBITDA of 2.2 to 2.3 billion euros, flagging however that energy prices would continue to be high in the fourth quarter.
As MRC informed earlier, Solvay says it aims to reduce emissions further from its own production plants and related to the energy it purchases, and include in its 2030 sustainability targets emissions in the value chains connected to Solvay’s activities.
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,868,160 tonnes in the first nine months of 2021, up by 18% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,138,510 tonnes in the first nine months of 2021, up by 30% year on year. Supply of propylene homopolymer (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding PP random copolymers decreased significantly.
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