​• The company posted operational profit EBITDA LIFO of CZK 3.111 bn in Q1
• Net profit reached CZK 1.995 bn in Q1
• Very high steam cracker utilization at 95%, refining utilization ratio reached solid 84% in Q1
• The volume of processed crude oil in Q1 reached 1,243 kt (+10% y/y)
• Higher sales volumes y/y in both segments – downstream and retail

In the first quarter of this year, Unipetrol recorded very high utilization of its production capacities, increased sales in both segments and therefore made a profit on solid level of refinery and petrochemical margins. The company recorded operational profit (EBITDA LIFO) of CZK 3.111 bn and net profit of CZK 1.995 bn. Revenues at the level of CZK 23.975 bn in 1Q (-16% y/y), were negatively affected by profound decline of crude oil prices y/y.

"Higher profitability of the company was achieved due to very good utilization of our production capacities in combination with significantly higher refining margins. Higher refining margins, positively affected by profound decline of crude oil prices, were utilized thanks to 15% increase of refinery product sales," says CEO and Chairman of the Board of Unipetrol Marek Świtajewski, adding: “Improvement in sales was registered not only in wholesale of Unipetrol RPA, but also within retail network of Benzina. Within the fuel stations, the company increased its sales also in gastro segment, especially within STOP CAFE food and beverage concept." 

In the downstream segment that combines refinery and petrochemical parts, the company recorded EBITDA LIFO of CZK 2.985 bn in 1Q15, which represents significant improvement y/y. The operational profit was positively influenced by better refinery and polyolefin margins, slightly higher Brent – Ural differential, lower energy costs thanks to significantly lower crude oil prices and higher sales volumes of refinery and petrochemical products. The sales volumes of fuels were supported by very limited grey zone on the Czech market.

In the refinery part of the downstream segment, the volume of crude oil processed in Q1 reached 1,243 kt, which represents 10% growth y/y. Utilization of refining capacities reached 84%, despite winter seasonality and planned and executed maintenance turnaround of Kralupy refinery in the second half of March. Sales volumes of refinery products increased to 1,055 kt (+15% y/y), driven by both better diesel and gasoline sales. In the last day of March the Office for the Protection of Competition issued a final decision regarding the purchase of  Eni’s 32.445% stake in Česká rafinerska. After the transaction closing, which is expected by the end of April, Unipetrol will become a sole shareholder of Česká Rafinérská. The acquisition opens up possibilities for further improvements of the operational management of the Czech refineries and will enable strategic control over these assets. 

Sales volumes in the petrochemical part of downstream segment amounted 446kt in Q1 (+1% y/y). The sales of polyethylene increased by 17% and in case of polypropylene by 10%. Increase in market demand for polymers was driven by favourable GDP dynamics, limited imports into the EU and higher exports of some European producers on the markets outside Europe, due to weaker EUR/USD rate. The company reached very high utilization of steam cracker at level of 95%. 

The retail segment recorded a very good operational profit EBITDA LIFO of CZK 135 m in 1Q15 (+35% y/y). The result was positively affected by better fuel margins y/y, both in gasoline and diesel. The company recorded higher fuel sales volumes, supported by lower price level on the market driven by decrease of crude oil prices, and by set of activities implemented in sales and marketing. Positive contribution to the results was generated also by non-fuel sales, especially thanks to STOP CAFE.