DGAP-News: Results Q1/2018: Petro Welt Technologies AG posts strong EBIT increase

PRESS RELEASE

Results Q1/2018: Petro Welt Technologies AG posts strong EBIT increase

- EBIT soared to EUR 5.5 million-a plus of 27.9%.

- Profit before tax jumped by 19.6%.

- Group result rose by 2.4% to EUR 4.3 million.

Vienna, May 22, 2018. The Group generates sales revenues primarily in Russian rubles (RUB); about 1,2% is contributed by the Kazakh business. Sales revenues in RUB during the first quarter of 2018 rose by 7.1%, but declined in EUR by 4.0% to EUR 76.6 million because the RUB depreciated by 11.5%.

The higher reduction in the optimized cost of sales by 8.1% relative to the revenue decrease enabled the gross profit to grow by 26.6%. As a result, earnings before interest and tax (EBIT) jumped by 27.9% to EUR 5.5 million (Q1/2017: EUR 4.3 million). The EBIT margin rose from 5.4% in Q1/2017 to 7.2% in Q1/2018.

The additional effect of financial gains from bank deposits triggered a spectacular increase in the profit before tax (PBT) by 19.6% to EUR 6.7 million in the first quarter of 2018, compared with EUR 5.6 million in the same prior-year period. Thus, even though tax expenses rose by 84.6% to EUR 2.4 million, the net profit in EUR climbed by 2.4% to EUR 4.3 million (Q1/2017: EUR 4.2 million).

EBITDA declined by 5.8% to EUR 16.1 million, and the EBITDA margin remained almost on the level of Q1/2017 (21.4%) comprising 21.0%.

The Company continues to maintain its strong liquidity position thanks to the increase in its operating cash flow by 28.3% to EUR 18.6 million (Q1/2017: EUR 14.5 million). The managerial cash position, which contains cash and cash equivalents and bank deposits, rose by EUR 7.7 million as at
31 March 2018 to EUR 142.1 million.

The marginal decrease in total assets by 2.9% to EUR 425.3 million was mostly attributable to the reduction in trade receivables and bank deposits. The equity ratio rose, however, reaching a level of 56.1% as at the 31 March 2018 reporting date, compared with 55.3% as at 31 December 2017.

The Q1/2018 Report of Petro Welt Technologies AG is available for download on our Website at
www.pewete.com.