PCC SE: PCC significantly outstrips earnings and revenue expectations in Q2 2022

Duisburg (pta031/23.08.2022/14:18) - Duisburg-based investment holding company PCC SE further extended its performance success, with earnings and sales growth significantly exceeding expectations in the second quarter of 2022. Quarterly sales of the PCC Group rose by 34.8% year on year to € 322.8 million, while Group revenues for the first half of the year increased by 49.0% to € 668.1 million. "Persistently high selling prices surpassing our predictions were a key factor in this performance – with the chlorine co-product caustic soda, plus other chlorine derivatives and also surfactants, doing especially well," explains Ulrike Warnecke, Member of the Executive Board of PCC SE, adding: "Likewise on the earnings side, we exceeded both our very good prior-year figures and our already high expectations for the current fiscal year."

The PCC Group increased earnings before interest, financial result, taxes, depreciation and amortization (EBITDA) to € 67.1 million in the second quarter and to € 143.0 million for the first half of fiscal 2022, representing year-on-year increases of 33.4% and 65.9% respectively. Operating profit (EBIT) came in at € 107.1 million for the six months ending June 30, more than doubling the previous year's figure. Earnings before taxes (EBT) increased to € 100.9 million in the first half year, three times the figure for the prior-year period. Thus, by the end of the first half of 2022, EBT in the PCC Group had already passed the total of € 91.7 million achieved in the record year of 2021.

Group segment performance highlights

The Chlorine & Derivatives segment, which currently generates the highest sales and earnings numbers of all the Group segments, further improved on its previous strong performance in the second quarter of 2022. Due to continuing high demand for chlorine and its derivatives, average selling prices for its entire portfolio remained at a high level. As a consequence, the Chlorine business unit of PCC Rokita SA, the largest company in the PCC Group, closed the second quarter with a highly successful set of figures well above those of the prior-year period. Likewise, the Surfactants & Derivatives segment again posted a very successful business performance in the second quarter of 2022. The largest affiliate of this segment, PCC Exol SA, achieved significantly higher sales volumes year on year, particularly in respect of its feedstock materials for the cleaning and personal care industries. The Polyols & Derivatives segment also posted another set of thoroughly positive results, despite the fact that its sales and earnings performance weakened due to declining demand from sectors such as the furniture industry. Within the Silicon & Derivatives segment, selling prices for silicon metal came under pressure in the course of the second quarter in the wake of declining demand, including from the aluminum industry, which is heavily dependent on the automotive sector. In addition, supplies from China increased and, in anticipation of further falling prices, many customers from other fields of application were also initially reluctant to buy in stock. Despite this difficult market environment, PCC BakkiSilicon hf. with its silicon metal plant in Iceland again closed the second quarter of 2022 in positive territory.

Redemption of maturing bond

On July 1, 2022, PCC SE redeemed the 4.00% bullet bond carrying the code ISIN DE000A2GSSY5, with the repayment amount totaling € 25.0 million.

The aforementioned Group financials are unaudited. The PCC 2/2022 quarterly report is available online at https://www.pcc-financialdata.eu ( https://www.pcc-finanzinformationen.eu ).

Profile of PCC SE

Headquartered in Duisburg, Germany, PCC SE is the parent and investment holding company of the globally active PCC Group with its more than 3,300 employees. Our Group companies have core competencies in the production of chemical feed stocks and specialty chemicals, silicon and silicon derivatives, and in container logistics. An investor committed to the longer term, PCC SE concentrates on continuously increasing the enterprise value of its portfolio companies through sustainable investments and the ongoing creation of new value. The largest chemical producers of the PCC Group are PCC Rokita SA, a major chlorine manufacturer and Eastern Europe's leading producer of polyols, and PCC Exol SA, one of Europe's most advanced surfactant manufacturers. PCC BakkiSilicon hf. operates in Iceland one of the world's most modern and climate-friendly silicon metal production facilities. PCC was founded in 1993 by Waldemar Preussner, sole shareholder of PCC SE, who today holds the position of Chairman of the Supervisory Board. In fiscal 2021, the PCC Group generated an EBITDA figure of € 197.5 million from consolidated sales of € 976.9 million, with capital expenditures totaling around € 110.9 million. For further information on PCC, go to: https://www.pcc.eu.

(Ende)