Spolana: credits pull it to losses
Article Abstract:
Spolana (Neratovice, Czech Republic), chemical firm, saw a loss of 431.2 mil Kc on an operating profit of 158.9 mil Kc in 1998. The main cause of the loss were the instalments of credits and interest, which amounted to 560 mil Kc in 1998. Spolana's cumulated loss for 1995-1998 reached 2.683 bil Kc, exceeding 50% of the firm's stock. Spolana's high credit burden dates back to the 1980s when the company accepted an investment credit in YEN to complete a linear alpha-olefin (LAO) unit. After the devaluation of the Czech crown at the beginning of the 1990s, the credit rose three-times, totalling 3.56 bil Kc at the end of 1998. Spolana, the only Czech PVC and LAO producer, exports 73% of its production. In 1998 the company saw proceeds of 6.805 bil Kc, 600 mil Kc lower compared to 1997 consequent on the global recession and the strong Czech crown. Low demand caused a reduction in the prices of PVC, LAO and caprolactam. Consequently, Spolana reduced production in 1998 as the selling prices got close to the production costs.
Publication Name: Ekonom-Tydenik Hospodarskych Novin
Subject: Business, international
ISSN:
Year: 1999
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Spolana to have a majority stake held by the state
Article Abstract:
Spolana (Neratovice, Czech Republic), chemical company, will be acquired by state-owned firms in 2001. The transaction will be a result of the fact that the state will forgive Spolana the redemption of debts worth more than CEK 2.5 bil and will change them into shares in the firm. The debts are the receivables that the state bank Konsolidacni banka (KOB) (Czech Republic) took over from Komercni banka (Czech Republic) and Investicni a Postovni banka (Czech Republic) in 2000. A majority stake in Spolana will thus be transferred to state-owned entities. Ceska inkasni (Czech Republic) will then hold 28.82%, Sanakon (Czech Republic) 16.1% and KOB 47.23%. Spolana's stock should increase from CEK 1.88 bil to CEK 5.7 bil. Spolana saw a loss of CEK 92 mil over 1-3Q 2000 compared to CEK 320 mil over 1-3Q 1999. Its proceeds amounted to CEK 6 bil for 1-3Q 2000, up 24% from 1-3Q 1999.
Publication Name: Ekonom-Tydenik Hospodarskych Novin
Subject: Business, international
ISSN:
Year: 2001
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Spolana recovers finance
Article Abstract:
Spolana (Neratovice, Czech Republic), chemical company, has undergone a recovery process. Over 1999-2000 it reduced and then raised again its stock and now is ready for further negotiations with strategical partners. The capital transactions helped the company resolve its financial problems caused by a credit for the construction of an alpha olefin unit. Spolana was allowed the credit before 1989 and the rapid devaluation of the Czech crown in 1991 resulted in a deficit of 1.6 bil Kc. The firm's operating economic result was 215 mil Kc in 1999, 56 mil Kc more compared to 1998. Its final economic results were burdened with financial costs of 527 mil Kc. That caused a total pre-audit loss of 330 mil Kc for 1999, 100 mil Kc smaller compared to the 1998 loss. In 1999 Spolana raised its exports to 82% of proceeds compared to 76% in 1998. Its main export market is Germany.
Publication Name: Ekonom-Tydenik Hospodarskych Novin
Subject: Business, international
ISSN:
Year: 2000
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