The chemical company agrees to a prolonged dry spell. After the result had halved last year due to high energy costs, among other things, it is expected to be even lower this year.
After losses in 2022, the plastics manufacturer Covestro is preparing for a decline in operating earnings in the new fiscal year. The group expects an Ebitda significantly below last year, announced Covestro. In the past year, earnings had almost halved to ultimately 1.6 billion euros. The company is struggling with high energy costs. In addition, high depreciation has depressed the balance sheet.
The group result collapsed to minus 272 million euros, after a profit of 1.6 billion euros in the previous year. A dividend will not be paid. For 2021, the shareholders had received a dividend of EUR 3.40. In the first quarter, Covestro expects an Ebitda of 100 to 150 million euros. In the previous year, Covestro had reported 806 million euros.
2022 was a year with unprecedented challenges for Covestro, explained CEO Markus Steilemann. This is reflected accordingly in the results for 2022. The management reacted to this. Covestro has reduced its energy consumption and costs. The sharp rise in energy and raw material prices, especially in Europe, weighed on the company last year. In addition, there were ongoing impairments from the coronavirus pandemic in China, high inflation and an overall slowdown in global economic growth.
