“In the area of development capital expenditures, we observe the appropriate pace of meeting the annual targets. I believe that start of our new polyethylene unit PE3 which was recently fully taken over from Technip will help us improve our profitability in upcoming months. In connection with the delay in the construction of a new polyethylene unit PE3, we activated a bank guarantee in the amount of CZK 0.6 billion which reduced capital expenditures on investment from the books. The current year-to-date realization of development capital expenditures is 96%” said Tomasz Wiatrak, CEO of the Unipetrol Group. “As in previous months, we see a significant impact of unfavourable macroeconomic factors that caused low margins. We are currently in a period of collapse of the aviation fuel market and oversupply of diesel in global markets. One of the negative impacts was the deterioration of the oil differentials Rebco vs Brent and CPC vs Brent and a further weakening of the diesel crack margin. In 3Q we recognized negative macroeconomic effect in amount more than CZK 1.0 billion. Internally, we now have to work with a scenario that assumed a collapse in quotations and a longer return to the level of demand before Covid 19,” he added. 

 

The volume of processed oil amounted to 1.914 million tonnes. Investments in the third quarter amounted to CZK 1.2 billion. Unipetrol is continuing modernization of the Benzina network, expanding the Stop Cafe gastro concept and expanding in Slovakia. In the third quarter, Unipetrol operated 416 service stations under the Benzina brand in the Czech Republic and equipped 2 more stations with the Stop Cafe concept which is already available at 310 stations. Unipetrol´s market share in the retail sale of vehicle fuels in the Czech Republic levelled to 25%. There were opened another two fuel stations at Slovakia market in 3Q2020 and in total Benzina has 13 stations in their network.

 

The Unipetrol Group is the largest refinery and petrochemical company in the Czech Republic. It focuses on crude-oil processing and on the production, distribution and sale of vehicle fuels and petrochemical products – particularly plastics and fertilisers. In all these areas, it belongs among the important players on the Czech and Central European market. The Unipetrol Group encompasses refineries and production plants in Litvínov and Kralupy nad Vltavou, Paramo with its Mogul brand in Pardubice and Kolín, Spolana Neratovice, and two research centres in Litvínov and Brno. Unipetrol also includes a network of Benzina filling stations in the Czech Republic and Slovakia. With 416 filling stations, Benzina is the largest chain in the Czech Republic. Unipetrol is one of the largest companies in terms of turnover in the Czech Republic. It earned over CZK 129 billion last year and employs more than 4,800 persons. In addition to its business development, Unipetrol is proud to be a socially responsible corporation. Therefore, it pays an equal amount of attention to initiatives which focus on the cultivation and support of sustainable development, education, local communities, and the environment. In 2005, Unipetrol became a member of the PKN Orlen Group, the largest crude-oil processor in Central Europe.
 
For more information, please visit the “Responsible Company” section at www.unipetrol.cz.

Contact information: Pavel Kaidl, spokesman, telephone: +420 225 001 407, +420 736 502 520, e-mail: pavel.kaidl@unipetrol.cz