Polish fertilizer and chemicals group Grupa Azoty SA will take a Pln468 million (approximately $105.9 million at current exchange rates) hit to FY2022 group EBITDA from inventory revaluation and a Pln963 million group EBIT hit from impairment charges, Poland’s PAP news agency reported, citing a market filing by the company.
The inventory revaluations result from changes to market prices, and were booked at Pln64 million for Azoty and at Pln404 million at the subsidiary companies.
The impairment charges include Pln88 million at Azoty – on the plastics business – as well as charges at the Azoty Puławy SA (melamine and plastics businesses) and at the Zakłady Chemiczne Police SA (fertilizers and pigments) subsidiaries, according to the report.
Azoty said the impairment charges will not impact EBITDA.
The polish group has said it will continue a temporary shutdown of the ammonia and urea production plants of its Azoty Zakłady Chemiczne “Police” subsidiary at Police until March 31 (see Markets).
Azoty late last week also reported that subsidiary Azoty Puławy SA halted caprolactam production and its melamine III plant as of March 10 for an indefinite period.
It said the stoppages are due to “the supply/demand situation on the European market.”