Prague, 4 November 2011 –The Unipetrol Group posted an operational profit (EBIT) of CZK -230m, with revenues of CZK 24.065bn (+7% y/y) in 3Q11. During the period company recorded net result of CZK -128m. This result was influenced mainly by ongoing negative trends in macro environment and decrease in production due to cyclical turnaround in Chempark Litvinov. On the other hand, results were positively influenced by decrease of fixed costs, and one offs: CZK 100m for sale of not consumed CO2 allowances and reimbursement of the CZK 236m paid fine to European court.
„The results of the third quarter were significantly influenced by the ongoing turnaround in Chempark Litvinov. Total capitalized expenditures related to turnaround reached over CZK 800m in 3Q11,“said the CEO and Chairman of the Board of Directors of Unipetrol, Piotr Chełmiński, adding:„ The best results were recorded in retail segment in 3Q11. We generated record high sales of premium higher-margin VERVA fuels. “
Unipetrol Group is successful in continuing its strict cost management as one of its priorities for this year. The Group decreased its fixed costs by over CZK -140m y/y in 3Q11. The overall goal for this year is approximately CZK 200m cost reduction.
Theretail segmentrepresented mainly by Benzina recorded a positive EBIT of CZK 142m in 3Q11. This result was reached mainly due to decrease of fixed costs and record high sales of premium higher-margin VERVA fuels (+3 % y/y). On the other hand, segment results were negatively influenced y/y by lower gasoline sales and weaker overall non-fuel sales. Benzina increased its market share from 14,1% in 3Q10 to 14,3% in 3Q11, however the demand in retail continued to be low.
In therefinery segmentthe volume of processed crude oil decreased by 20% y/y, from 1,182 kt in 3Q10 to 941 kt in 3Q11, as the nominal utilisation ratio reached 74%. The reason was the ongoing shutdown at Chempark in Litvinov. Group sales of refinery products declined (-9% y/y) in 3Q11. The sales were down mainly on diesel, bitumen and fuel oil, however gasoline sales improved by +4% y/y despite drop in gasoline market. Performance of the refinery segment was also negatively affected by higher differential between Brent and other sweet crude oils which more than doubled y/y. There was also negative influence of shrinking Brent-Ural differential. The refinery segment recorded EBIT of CZK -330m in 3Q11.
EBIT in thepetrochemical segmentamounted to CZK -270m in 3Q11. Performance of this segment was influenced by lower combined petchem margins, by negative FX effect of CZK/EUR and decreased sales of petrochemical products (-8% y/y). Lower petrochemical volumes were influenced mainly by polymers (-14 % y/y), monomers (-11 % y/y) and agro products (-9 % y/y). Lower sales were resulting from turnaround in Litvínov.
Companies of the Unipetrol Group succeeded in the prestigious competition PETROL awards 2011, within which the most important innovations in refining, petrochemicals and operation of petrol stations are awarded in the Czech Republic. Petrol station EXPRESS 24 from Benzina won 1st place in the category of „Engineering and operations“ and 1st place in public voting category. A new MOGUL MOTO oil series produced in Paramo Pardubice has been awarded in the category of „Best product“ .
Attachment No. 1
Consolidated un-audited financial results (CZK million)
| Revenues |
22,505 |
25,948 |
24,065 |
-7% |
+7% |
63,952 |
73,100 |
+14% |
| • EBITDA |
1,170 |
1,012 |
505 |
-61% |
-57% |
4,191 |
2,896 |
-31% |
| • EBIT |
238 |
224 |
-230 |
n/a |
n/a |
1,556 |
565 |
-64% |
| • Net result1) |
175 |
-1 |
-128 |
n/a |
n/a |
1,004 |
335 |
-67% |
1) Net result attributable to shareholders of the parent company
EBIT Segment Breakdown (CZK million)
| EBIT,of which |
2381) |
224 |
-230 |
n/a |
n/a |
1,556 |
5651) |
-64% |
| • Refining |
-143 |
-329 |
-330 |
n/a |
n/a |
492 |
-569 |
n/a |
| • Petrochemical |
176 |
465 |
-270 |
n/a |
n/a |
571 |
579 |
+2% |
| • Retail distribution |
171 |
86 |
142 |
+65% |
-17% |
437 |
301 |
-31% |
| • Others |
34 |
1 |
228 |
+156x |
+572% |
56 |
255 |
+358% |
1) Minor mathematical discrepancy between segments and total due to rounding.
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 largest oil processor in Central Europe. The UNIPETROL Group is oriented mostly towards oil processing, fuel distribution and petrochemical production. In all of these business areas the UNIPETROL Group is among the key players both in the Czech Republic and on the Central European market.The Group ranks among the leading firms in the Czech Republic in terms of its revenues, and employs almost 4,000 people.
Contact:
Mikuláš Duda
Press Office Manager
Telephone: +420 225 001 407, +420 736 502 520
E-mail:mikulas.duda@unipetrol.cz