Results first half 2021

Regulated information - 2 September 2021 – 18:30

Financial results

During the first semester of 2021 Campine’s revenue amounted to 106,3 mio €, which is an increase of 29% compared to the first semester of 2020 and 3% higher than the first semester of the ‘pre‑Corona year’ 2019. The EBITDA reached 10,9 mio €, which is a record high result for the first semester. The increase in sales and profit is entirely related to the recovery of the economy following the breakthrough of the Corona pandemic and the increase of the raw material prices. “The demand for all our products was extremely high” explains CEO De Vos “Our concerns today are mainly to find enough raw materials at decent prices, although we can pass on the increased costs fairly easily” he adds. Especially in Campine’s Specialty Chemicals division there are shortages for different materials, leading to higher prices.

Campine was also able to extend the efficiency improvements and savings implemented during last year’s pandemic. Thanks to adequate measures there have been no negative consequences for Campine’s employees related to Covid so far.

To facilitate a better comparison, results of the ‘pre-Covid’ year 2019 were added to the usual comparison with the prior (Covid) year 2020.

Results per division/segment

Division/segment Specialty Chemicals

Market and Operations

• The 2020 year-end rally of the antimony metal price continued at a higher pace in 2021. Antimony is the main raw material for Campine’s Specialty Chemicals division. By the end of March prices reached the level of 12,000 USD/ton, which is double of the price level of mid-2020. This fast and steep increase is related to an uptake on the demand side and shortages on the supply side. Covid pandemic closures of antimony mines around the world caused ore supply to drop significantly, leading to shortages in antimony metal and ultimately to a relative scarcity of trioxide. This situation persists until today and is also fuelled by increased maritime transport costs, where prices are fivefold of last year.
• “Thanks to our diversified purchasing network Campine was able to secure enough metal.” Explains Hans Vercammen, Division Director Specialty Chemicals “On top of this we were fortunate to start up our antimony recycling factory earlier this year: it already paid off, given the shortages and for sure the interesting price levels.” Vercammen adds.
• In the Plastics business unit the main challenges were similar in trying to secure supplies of the different polymers and additives at reasonable prices. Campine is however able to pass on the material price increases to its customers. 
• Sales revenue in the Specialty Chemicals division increased to 47.2 mio €, a growth with 38% from 2020 and 8% higher than in 2019. These higher revenues are mainly a result of a strong demand and higher sales prices of the antimony products.
• The EBITDA rose to 6.3 mio €, (compared to 1.7 mio € in 2020 and 0.5 mio € in 2019). This strong result is also supported by a stock value increase resulting from the higher prices.

Division/segment Metals Recycling

Market and Operations

• The demand for lead has been consistently high this year. Lead LME prices kept on fluctuating around the 1,650 €/ton level, but rallied to a level of 1,950 €/ton by the end of June.
• The production output of our Lead business unit suffered from advanced wear of a part of our equipment. Due to the increased productivity in recent years this part needs replacement sooner.
• The Metals Recovery activities, in which we recycle other metals, contributed extra to the revenue and profits thanks to high prices for gold, silver and tin.
• Sales volumes reached approx. 34,000 tons, which is 4,000 tons more than last year, but comparable to 2019.
• Sales revenue increased to 69.1 mio € (+27% versus 2020 and +4% versus 2019).
• The EBITDA amounted to 4.6 mio € compared to a break-even in 2020 and almost equal to 2019.

Outlook 2021

We can already mention that 2021 will be a strong year for Campine, surely if raw material prices remain on a high level. In all of our businesses we expect the positive market situation to extend “Market demand remains high, so we expect to run at full capacity for the remainder of 2021” according to CEO De Vos.

LME stocks in Europe and the USA continue to diminish, which keeps the lead LME price at a reasonable high level: it has been fluctuating around the 2,000 €/ton mark in recent weeks. It is expected that there will be a lead deficit this year on the world market. The price and high demand situation is also supported by the temporary fall out of Europe’s largest lead producer in West Germany due to the flooding of early July.

In Campine’s Specialty Chemicals the demand is also expected to remain high, as Asian (mainly Chinese) competitors have supply issues related to logistical limitations and high shipping costs.

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