From January 1, 2007 UNIPETROL will switch to a new governance model. The changes represent one of the conditions of successful restructuring of UNIPETROL, which has been in process since 2005. When the restructuring is complete, the company’s EBITDA should increase by a minimum of EUR 138 million, fulfilling the commitment of the Unipetrol management in the Partnership Program launched in 2005 to improve UNIPETROL´s financial performance.Prague, 9th of November 2006 - UNIPETROL is a large group the organization of which has always been extremely complicated. That is why the majority shareholder – PKN ORLEN – has pinpointed increased efficiency, competitiveness and transparent structure as major goals. “We have been inspired by large corporations which have had success with this concept,” said UNIPETROL CEO François Vleugels.
The change of governance is based on three key principles:
1) focus on production and focus on sales
2) creation of a specialized Shared Services Centre
3) simplification of the legal structures
This will represent a basic structure for all segments of the UNIPETROL group. Not only will the mother company UNIPETROL maintain its controlling function but its strategic role will be enhanced. It will provide processes which require coordination at the corporate level, e. g. internal audits, optimization of profit margins in the group, controlling and PR.
This model entirely maintains UNIPETROL’s key areas of business – processing of oil, petrochemicals, retail, and oil and lubricants. Business leadership for refinery and petrochemical products will be consolidated into the current legal entity of UNIPETROL Rafinérie. Petrochemical production will remain in Chemopetrol. The Shared Services Centre will be a legal entity and Benzina will remain an independent company because retail is a very specific field which requires a different business approach. Most of the companies in the group (those which are 100% owned by Unipetrol) will change from joint-stock companies into limited liability companies (Ltd.) in order to simplify their governance and legal procedures.
The new governance model will put a significant focus on leadership as well as various fields related to the Group´s growth.
UNIPETROL is a group of companies operating in the petrochemical industry in the Czech Republic. In 2005, UNIPETROL became part of the PKN ORLEN Group, Central Europe's largest downstream oil company. UNIPETROL’s focus is mainly on crude oil processing, the distribution of fuels, and petrochemical production. In all these areas, UNIPETROL is a major representative in the Czech Republic and an important player in the Central European market. In 2005, UNIPETROL’s revenues and net profit reached CZK 81 bn, and CZK 3.4 bn respectively.
Contact:
Michaela Lagronová
Spokesperson
Unipetrol, a.s.
Mobile: + 420 602 304 708
E-mail: michaela.lagronova@unipetrol.cz
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