A combination of severe(more-than-expected) maintenance shutdowns, weaker grades and lower prices pushed Q2 operating margins to a three-year low. Both divisions were negatively impacted. Fortunately, operating cash flows recovered after falling materially in Q1 19. Even though maintenance costs are also guided for H2 19, the gradual restoration of normalised operations should dispel further profitability concerns. Overall, Boliden remains a preferred sector bet due to its favourable commodit
22 Jul 2019
Q2 profitability headwinds aren’t worrisome
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Q2 profitability headwinds aren’t worrisome
A combination of severe(more-than-expected) maintenance shutdowns, weaker grades and lower prices pushed Q2 operating margins to a three-year low. Both divisions were negatively impacted. Fortunately, operating cash flows recovered after falling materially in Q1 19. Even though maintenance costs are also guided for H2 19, the gradual restoration of normalised operations should dispel further profitability concerns. Overall, Boliden remains a preferred sector bet due to its favourable commodit