Earnings Poll: Poland's KGHM Q3 net profit expected to fall 90% y/y

Ipopema Securities SA

15/11/2023 14:12

* 
      KGHM Q3 results due Nov 15 after market close
    

        * 
      Q3 net profit seen at 114 mln zlotys
    

  
       Nov 15 (Reuters) - Polish copper producer KGHM  KGH.WA 
is expected to report a 90% drop in its third quarter net
profit, mainly due to increasing costs, a Reuters poll showed on
Wednesday. 
    "The decline of net profit will be influenced, in my
opinion, by very strong cost pressures within the company
(...)," Santander BM analyst Pawel Puchalski said. 
    "Management assumed that costs could increase by more than
30% year-on-year in 2023, and this scenario seems very likely,
strongly undermining the company's results and cash generation,"
he added.
    The survey of analysts from five banks and brokerages showed
that state-run KGHM, one of the world's biggest copper and
silver producers, would post a profit of 114 million zlotys 
($28.14 million) in the third quarter and 508 million zlotys for
the first three quarters of the year.

(Figures in millions of zlotys unless stated otherwise)

THIRD QUARTER OF 2023 - (CONSOLIDATED):
                 Net                       
               profit     Adjusted       Sales
                           EBITDA          
                                      
   Average       114        1142         7890
   Median         32        1106         7862
   Lowest       -118        1050         7760
   Highest       416        1303         8099
   No. of         5           5           5
   f'casts                            
   Q3 2022      1086        6950         7770
   Q2 2023       231        1270         8170
 Forecasts provided by: DM PKO BP, Santander BM, Erste Group, BOŚ
DM, Ipopema Securities.


($1 = 4.0510 zlotys)

 (Reporting by Marta Maciag
Editing by Mark Potter)
 ((marta.maciag@thomsonreuters.com ; +48 58 746 91 96;))