Prague, April 27, 2017 – The largest Czech petrochemical group Unipetrol announced its first-quarter results. Unipetrol’s year-on-year revenues grew by CZK 12.2 billion (+69%) to CZK 29.9 billion. Operating profit before interest, taxes, depreciation and amortization (EBITDA LIFO) reached CZK 3.6 billion which represents a year-on-year increase of almost CZK 3.3 billion (+933%). Net profit increased y/y to CZK 2.8 billion. In the same period of 2016 Unipetrol reported net loss of CZK 25 million. A significant year-on-year improvement in economic results was achieved mainly by increasing petrochemical and refinery production thanks to the re-launch of the Steam Cracker in Litvinov. Unipetrol also recognized in the financial statements an amount of CZK 1 billion from the insurers compensating for lost profits and damage to the fluid catalytic cracking unit (FCC) caused by the 2016 extraordinary event in Kralupy nad Vltavou. The Unipetrol Group reached very good financial position at the end of this year’s first quarter; net cash amounted to CZK 4.5 billion.

 

„We have been through a successful quarter gaining almost 30 billion crowns and generating net profit of nearly three billion crowns. We are focusing on long term and stable shareholder value growth in order to ensure a stable dividend pay-out and create the possibility for continuous dividend growth in the future. Dividend proposal is in line with our strategic target of a systematic increase of DPS ratio (dividend per share), reflects liquidity position and profitability combined with increased share valuation,“ said Andrzej Modrzejewski, CEO and Chairman of the Board at the Unipetrol Group, adding: „We also have strengthened our social responsibility activities by establishing the Unipetrol Foundation. We want to support talented students, improve the quality of high schools’ equipment and attract young generation to technical and chemical fields.“

 

Downstream segment
In the downstream segment which consists of the refinery and petrochemical part the Unipetrol Group reported operating profit EBITDA LIFO of CZK 3.4 billion in the first quarter of 2017. In a year-on-year comparison, when Unipetrol posted operating profit of CZK 132 million it’s an increase of CZK 3.2 billion. The achieved results were positively influenced by the y/y increase in the utilization of production capacities. Unipetrol has increased the capacity utilization of its refineries from 66% to 88% thus increasing the volume of processed oil by 35% from 1.4 million tons to 1.9 million tons. Sales volumes of refinery products increased y/y by 3% to 1.6 million tons. Sales of petrochemical products grew significantly by 136% to the level of 456 thousand tons. The Spolana contributed with 106 thousand tons.

 

Retail segment
In the retail segment, the Unipetrol Group reported operating profit EBITDA LIFO of CZK 265 million.  Its y/y increase of CZK 64 million (+32 %) was due to higher fuel sales caused by favorable macroeconomic situation as well as improved results in the segment’s non-fuel part via STOP CAFE concept. Unipetrol launched a new fuel type called EFECTA 95 and EFECTA Diesel and continued in the gradual takeover of 68 filling stations from OMV. At the end of the first quarter, Unipetrol has taken over 16 filling stations increasing the total number of its filling stations to 380. Benzina further strengthened its positions as the leader on the fuel retail market in the Czech Republic increasing its market share to 18.1% (January 2017). 

 

Unipetrol Foundation
In the first quarter of the year, the newly established Unipetrol Foundation began to operate. This year, it intends to divide a minimum of six million crowns between high school and university students. The foundation will be fulfilling its purpose - that is to support students of natural and technical fields and to popularize natural sciences - both through scholarship programs and paid student internships but also via grant programs for high schools. Chairman of the Unipetrol Foundation’s Board of Directors is Andrzej Modrzejewski, CEO of the Unipetrol Group. Other board members are Karel Melzoch, Rector of the University of Chemistry and Technology, Prague, and Tomas Herink, member of the Unipetrol Group’s Board of Directors responsible for research and development. More information can be found at www.nadaceunipetrol.cz.

 

Unipetrol Group’s Unaudited Consolidated Financial Statements (CZK million)

 

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