Solvay flags Middle East risk after Q1 profit meets views
The Belgian chemicals group posted a 12.4% drop in core profit to 219 million euros, matching market expectations. Management is currently assessing the impact of a production halt at its Saudi Arabian joint venture while passing higher energy and transport costs to customers.
SOLVAY SA reported a 12.4% drop in first-quarter core profit to €219 million on Thursday morning. The results from the chemicals producer based in Belgium matched Vara Research analyst estimates of €220 million. Investors are monitoring how Middle East supply chain disruptions and higher energy costs will impact second-quarter margins.
Solvay is passing increased transport and energy costs to customers to mitigate the impact of regional conflict. Management said the overall effect of the crisis remains limited as the region accounts for less than 5% of total sales.
