December 13 (SeeNews) - Slovenian chemicals producer Cinkarna Celje [LJE:CICG] expects to post a 14 million euro ($15.6 million) net profit in 2020, which will be 26% below the estimate for this year.
The fall in profit will be a direct result of the drop in the sale price of titanum dioxide pigment - its main product, Cinkarna Celje said in a filing with the Ljubljana Stock Exchange earlier this week.
Cinkarna Celje plans to increase the volume of sales in order to compensate for the declining sale prices.
The company expects to close 2019 with a net profit of 19 million euro, down 38% compared to last year's performance.
Cinkarna Celje plans to increase sales revenue by 3% to 174.2 million euro next year, with sales abroad projected to rise 4% to 155.7 million euro, it said.
Investments will almost double to 20 million euro next year from 11 million euro planned for 2019.
Cinkarna Celje was one of 15 enterprises slated for privatisation in 2013 when the Slovenian government drafted a list of companies to be offered for sale in order to meet its commitments under an excessive deficit procedure launched by the European Commission against the country.
A possible buyer, Luxembourg-based Anatol, withdrew its takeover plan for Cinkarna Celje in June 2018, reportedly because it had not received permission to carry out due diligence on time.
Cinkarna Celje was established in 1873. Its core business is production and marketing of titanium dioxide pigment.
Cinkarna Celje's shares traded at 184 euro by 0924 CET on the Ljubljana Stock Exchange on Friday, down from Thursday's closing price of 185 euro.
($=0.894580 euro)