The UNIPETROL Group’s net profit for Q3 2008 amounted to CZK 557m. Particularly the petrochemical segment contributed to the improvement in net profit, which rose by 84% from Q2 2008. On the other hand, the refining segment was negatively impacted by large movements in crude oil prices and inventory revaluation.
Comments on Q3 2008 results
The refinery segment, which was the main driver in the second quarter, was affected the most by the unfavourable macroeconomic development. In mid-July there was a peak in crude oil prices, which was followed by their steep fall (from an average of USD 133.2/bbl in July to an average of USD 98.1/bbl in September). Another unfavourable factor was the plunge of the USD/EUR rate. Inventory revaluation also had a negative impact on the result, and slashed the refinery segment’s profit by CZK 362m. On the other hand, diesel sales, which increased about 19% compared with Q2, were the driver in the refinery segment.
The petrochemical segment experienced good recovery in Q3 2008. EBIT rose to CZK 608m thanks to favourable naphtha prices. Lower olefin and polyolefin margins were compensated by higher volume sales, which recorded a 16% increase compared with Q3 2007. The negative effect of inventory revaluation caused a drop of CZK 137m in petrochemicals.
Retail sales of motor fuels traditionally performed well, posting EBIT growth of 101% in comparison with Q2. The completion of the rebranding of Benzina Plus filling stations contributed to a surge in sales in the gastronomy segment (up by 200% in Q3 compared with Q3 2007) and in shops (up by 12% in Q3 compared with Q3 2007).
Consolidated, unaudited financial results (CZK million)
| |
Q2 2008 |
Q3 2008 |
q/q |
| Revenues |
27,081 |
29,899 |
+ 10% |
| EBITDA |
1,702 |
1,638 |
- 4% |
| EBIT |
838 |
772 |
- 8% |
| Net profit |
302 |
557 |
+ 84% |
| Earnings per share |
CZK 1.76 |
CZK 3.07 |
+ 1.31 |
EBIT Segment Breakdown (CZK million)
| |
Q2 2008 |
Q3 2008 |
q/q |
| EBIT, of which |
838 |
772 |
- 8% |
| • Refining |
966 |
- 61 |
|
| • Petrochemicals |
- 260 |
608 |
|
| • Retail |
68 |
137 |
+101% |
| • Others, Non-attributable, Eliminations |
64 |
88 |
+ 38 |
Consolidated, unaudited financial results (CZK million)
| |
M9 2007 |
M9 2008 |
9M/9M |
| Revenues |
67,629 |
79,129 |
+ 17% |
| EBITDA |
7,818 |
4,831 |
- 38% |
| EBIT |
5,504 |
2,263 |
- 59% |
| Net profit |
1,800 |
1,265 |
- 30% |
| Earnings per share |
CZK 9.93 |
CZK 6.98 |
- 2.95 |
* Net profit attributable to the shareholders of the parent company
Outlook for the rest of 2008
“Although our net profit for Q3 improved, we did not manage to compensate for the weaker results during the first 6 months 2008. We continued to experience very turbulent market conditions, especially in the development of the price of crude oil and the foreign exchange rates. On the other hand, the petrochemical margins partially recovered on decreasing naphtha prices,”< /em> says François Vleugels, UNIPETROL CEO.
„The further development of crude oil prices and the petrochemical margins and volumes will be the key for Q4 results. We do expect that petrochemical margins will remain strong but are uncertain about the level of demand for petrochemicals. We will continue to have rigorous cost control and will decrease CAPEX spendings to reflect the new economic reality,” adds François Vleugels.
UNIPETROL, a.s. is a group of companies operating in the petrochemical industry in the Czech Republic. In 2005 UNIPETROL became a part of the PKN ORLEN group, the biggest oil processor in the Central Europe. The UNIPETROL Group is oriented mostly on oil processing, fuels distribution and petrochemical production. In all these business areas the UNIPETROL Group is among the key players both in the Czech Republic and on the Central European market. The Group belongs to the leading firms in the Czech Republic from the sales point of view and employs approximately 4500 persons.
Contact:
Blanka Růžičková
Spokesperson
UNIPETROL, a. s.
Telephone: +420 225 001 407, +420 731 881 111
E-mail: blanka.ruzickova@unipetrol.cz