Last year, Ercros reported earnings of 63 million euros, a jump of 45.5% from the prior year. This surge comes as shareholder returns for the 2022 fiscal year were set at a record 32 million euros, comprising 13 million euros distributed to shareholders and 19 million euros allocated to the repurchase of its own shares. Even with soaring energy costs, the company achieved an adjusted ebitda of 143 million euros, up 52.3% from 2021.
While energy prices and the higher costs of raw materials and transport weighed on the business environment, demand remained robust and helped support healthier average selling prices. The strength of a well balanced product portfolio and the firm utilization of existing productive capacity were pivotal to the year’s positive results. Ercros maintained a solid liquidity position of around 158 million euros, positioning the group well for 2023 and beyond. The chemical industry is cyclical by nature, and management acknowledges that these cycles require prudent planning. The company notes it is not yet able to provide precise forecasts for the near term.
Antonio Zabalza, president of Ercros, cautioned that the first half of 2023 could show softer activity compared with the same period in 2022, with a gradual improvement expected later in the year. He described a cycle of moderating prices and narrowing margins as the market adjusts to shifting conditions.
In 2022, strict cost control helped lift profits even as sales volume fell by 10% on a tonnage basis. Chlorine derivatives led the way with sales of 673 million euros, rising 39% and delivering an adjusted ebitda of 125 million. The second largest segment, precursors, generated 261 million euros in revenue, up 9.8%, but EBITDA declined to 15 million due to intensified competition from regions with lower energy costs. The pharmaceutical sector contributed 65 million euros in turnover, increasing 27%, with EBITDA of three million, up 50%.
Zabalza indicated that the group will reevaluate planned investments of around 30 million euros in light of the evolving economic landscape and the year’s balance. Reports noted that important factors for the year ahead include the progress of the European Union’s wholesale electricity market reform and the support measures for gas-intensive users as part of EU policy developments.