Polvek Tybor
Imperial Chemical Industries
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Posted - 2008.03.09 14:35:00 -
[1]
Hi all
In this first period since the issuance of our further 1.5bn bond it's been a bit of a slow start. The first priority was to use the freighter capacity to fuel up the POS silos for longer periods. This can be seen in the big growth in fuel assets on the balance sheet. The second order of business was to fill up the reactor silos and keep them churning as much as possible. This has been less successful, as the ability to get the large amounts of materials to the POS has been difficult - from a time commitment perspective rather than practical difficulties (iPhone SDK!). At the end of this period I have been able to get significant amounts of materials to the reactors which can be seen in the balance sheet below.
However, for much of this period the reactors have been only partly utilised and with a very tight intermediate minerals market our profit margins have suffered. The business has made operating profit sufficient to cover only our fuel costs. Interest and admin expenses have resulted in a loss for shareholders (the first since incorporation) of a modest 112m ISK.
For the existing and new bond holders, a coupon of 5% was paid out yesterday in cash (not via dividend mechanism) to the legal owner per the corp screen.
Despite the relatively poor showing this fortnight, if the reactions market picks up a bit I think we could be well placed for a good next couple of weeks - 100% reactor uptime and reasonable profitability.
Income Statement
...............................2 weeks to 09 Mar................2 weeks to 24 Feb
Revenue..................................997..................................2,226
Cost of Sales...........................(877)...............................(1,814)
OPERATING PROFIT..............120....................................412
Fuel Costs...............................(122).................................(129)
Administrative Expenses...........(29)....................................(39)
Interest Payable......................(81)....................................(25)
PROFIT ATTRIBUTABLE TO
EQUITY SHAREHOLDERS.......(112)..................................219
Dividends paid...............................0..................................(115)
NET MOVEMENT
IN RESERVES........................(112)...................................104
Balance Sheet
............................................09 Mar.............................24 Feb
Plant and Equipment.................1,539...................................570
Cash..........................................394...................................421
Receivables..................................0..................................1,993
Fuel...........................................135.....................................72
Inventory...................................944.....................................87
TOTAL ASSETS......................3,012.................................3,143
Debt Securities in Issue.............2,131.................................2,150
TOTAL LIABILITIES.................2,131...............................2,150
Share Capital..............................250.....................................250
Retained Earnings.......................631.....................................743
CAPITAL AND RESERVES..........881...................................993
Best regards,
Polvek
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