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Solvay's first-quarter profits are in line with last year, but it passes on the costs of the Iran war to its customers

Solvay, a Belgian chemicals company, said it would pass on higher energy and transportation costs to its customers in response to the Iran War.

Solvay says it will assess how the temporary closure of its Saudi Arabian-based joint venture peroxides would affect its business during the second quarter. It adds that the overall impact is limited.

Vara Research had predicted a core profit of 220 millions euros, but the comments accompanying them showed that it fell to 219 million euros (257.37 dollars), a 12.4% decline.

Solvay's Middle East sales are less than 5%, but since mid-March, production has been stopped at the 50-50 Saudi Hydrogen Peroxide Joint Venture with?Sadara Chemical Company. This joint venture is itself a joint project of Saudi Aramco, Dow and Dow.

The company stated that "this?impact" on the second quarter will be?assessed, and will depend on when platform activity will resume.

Solvay CEO Philippe Kehren, who spoke to reporters after presenting the results, said that the site will restart within a few months.

Solvay shares dropped 8.8% after the news pushed the SBF 120 index to its lowest point. ($1 = 0.8509 euro) (Reporting and editing by Christoph Steitz, Louise Heavens, and Olivier Cherfan from Gdansk)

(source: Reuters)