"We have continued in investments and in modernisation of our production sites. In Kralupy nad Vltavou, we started a planned and carefully prepared turnaround of the entire site,” said Krzysztof Zdziarski, Chairman of Unipetrol's Board of Directors, adding: “In March, a tragic event unfortunately occurred in the distribution terminal. Shortly after the event, we provided swift and effective financial aid to the affected families through our Unipetrol Foundation. We have intensified our checks on whether all regulations for on-site working are being followed. We have asked our contractors to do likewise. Once the investigation is completed, we will take the appropriate measures and we will require our partner companies to do the same."
Downstream segment – decrease in the refinery part, increase in the petrochemical segment
The downstream segment consisting of the refinery and petrochemical part of the Unipetrol Group posted an operating profit EBITDA LIFO of CZK 1.1 billion in the first quarter of 2018 - a decrease of CZK 2.2 billion (-67%) in a y/y comparison. The results were negatively influenced by low margins due to growing crude oil prices on world markets. Production capacity utilization fell by 2% y/y to 86%. The volume of processed crude oil fell by 4% y/y to 1.9 million tonnes due to the turnaround that had started in the Kralupy refinery. Sales volumes of refinery products dropped y/y by 14% to 1.4 million tonnes. Petrochemical segment, on the other hand, saw a y/y growth. The steam cracker’s utilization grew to 94% (y/y change +44%). This was reflected in growing sales of the petrochemical products by 16% to 531 thousand tonnes. We have continued with the construction of the new PE3 polyethylene unit. Spolana signed a contract for the construction of a new heating plant worth more than CZK 200 million.
Retail segment – high operating profit, ongoing modernisation, market share growth
The retail segment, the Unipetrol Group reported an operating profit EBITDA LIFO of CZK 368 million in the first quarter of 2018, a y/y growth by CZK 103 million (+39%). This was due to increased fuel sales thanks to Benzina expanding its petrol station network and the volume of the fuel sold at the stations that have been taken over from OMV. The successful process of the OMV petrol station take over was completed in the first quarter of this year. Unipetrol has acquired 60 petrol stations from OMV in total. In the non-fuel part, Unipetrol benefited from further development of its Stop Cafe modern refreshment concept. In the first quarter this year, Unipetrol continued to strengthen the leading position of its Benzina brand on the Czech Republic’s filling station market, registering a total of 404 petrol stations in its Benzina network at the end of March. Benzina’s market share has thus grown to 21.4% (January 2018).
Changes in Unipetrol’s ownership structure
The ownership structure of the Unipetrol Group changed in the first quarter of 2018. In December 2017, PKN Orlen, the majority shareholder, submitted a voluntary public offer to purchase Unipetrol shares to other shareholders. As a result, PKN Orlen increased its ownership share in the Unipetrol Group from 62.99% to 94.03% in the first quarter of 2018.
Unipetrol Group’s Unaudited Consolidated Financial Statements (CZK million)