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ORZEŁ BIAŁY GROUP EARNED HIGH PROFITS FOR THE FIRST HALF OF 2018

ORZEŁ BIAŁY GROUP completed the first half of 2018 with the EBITDA figure understood as earnings on operating activities before depreciation/amortisation at the level of PLN 20.8, up 40.5% y-o-y, mainly due to favourable cost structure of raw materials used for production.

  •  Orzeł Biały Group profit of on operating activities amounted to PLN 16.2 million., up 62% y-o-y
  •  Net profit of Orzeł Biały Group amounted to PLN 12.4 million and was almost twice as high as the result achieved in the same period last year.
  •  In the core business area, the volume of refined lead sold in the first half of 2018 amounted to PLN 34.5 kt, up 2.1% y-o-y.

In the first half of 2018, sales revenues of the Group amounted to PLN 338,103,000, up 4.1% as compared to the same period last year. The increase in revenues was influenced by a 2.1% higher sales volumes of lead and lead alloys and by higher lead sales prices. The result on lead price hedging transactions, included in the sales revenues, amounted to PLN +1,033,000, while in the corresponding period of the previous year it amounted to PLN -11,911,000.

 

In the reporting period, the main raw material market was favourable for Orzeł Biały Group as raw material prices were stable in relation to LME, which was reflected in the consolidated results.

 

The group consistently increases the share of technologically advanced lead alloys in its sales - at the end of the first half of 2018 this share amounted to as much as 85%.

An important event for Group was the receipt of non-binding investment proposals from potential strategic investors as a result of the strategic options review process with such options currently under examination.

- "Acquiring a strategic investor who would provide capital support is very important for the further development of our Group. For several years we have been focusing primarily on our core business, we have improve our operational processes, developed high quality products by implementing highest standards. We keep investing in infrastructure and increasing the standards of health and safety and developing competences of our experienced workforce. However, the industry in which we operate continues to develop, and this requires us to constantly invest and change”,  says Michael Rohde Pedersen, President of the Management Board of Orzeł Biały.

 

Another important event involved the regaining of control over Orzeł Surowce and its subsidiaries. Orzeł Biały, as a result of the announcement on March 26, 2018 of the bankruptcy of Orzeł Surowce at the request of its creditors, lost control over this company and its affiliates. As a consequence, these entities were excluded from consolidation. Orzeł Biały Group lodged a complaint against the issued court decision as a result of which, after the reporting period, the parent company regained control over these companies following the decision by the District Court which determined to change the appealed decision and to dismiss the  application of the creditor in its entirety. Consequently, we made write-downs which had a total impact on the results of the first half of 2018, i.e. they increased the separate operating result by PLN 2.8 million and decreased the consolidated operating profit of Orzeł Biały by PLN 0.2 million.

 

"I am very pleased with the  positive consideration of our complaint  stated by District Court, I am glad that justice has been served. I hope that our winning the case will be a lesson learned for mala fide creditors in the future, "says Michael Rohde Pedersen, President of the Management Board of Orzeł Biały.

 

Consolidated financial results of Orzeł Biały Group

PLN million

1H 2018

1H 2017

Change %

Sales revenue

338.1

324.8

+4.1

Gross sales margin

31.8

23.9

+33.1

EBITDA

20.8 

14.8

+40.5

Operating profit/loss

16.2

10.0

+62.0

Profit/loss before tax

16.0

8.7

+83.9

Profit/loss after tax

12.4

6.3

+96.8

 

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Orzeł Biały S.A.

NIP 626-000-31-39
REGON 270647152
KRS 0000099792 District Court in Gliwice,
10th Department Commerce of the National Court Register
Equity PLN  7,159,779.07 PLN paid in full

Contact

Telephone +48 (32) 779 65 00
Email office@orzel-bialy.com.pl
Adress ul. Harcerska 23
41-946 Piekary Śląskie

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