Prague, 23 July 2013 – In Q2 Unipetrol Group posted EBITDA LIFO of CZK 663m (-51% y/y), with positive contribution of petrochemical and retail segments. Revenues reached CZK 24.710bn in Q2 (-9% y/y). Results were influenced by lower y/y sales volumes of both refining and petrochemical segment, lower refining margins and higher renewable surcharges (POZE). Stable good level of petrochemical margins, better sales of polymers or better sales in retail segment mitigated these negative factors.
„Czech local and also international European macro environment continues to be not supportive for us. Despite that petrochemical segment recorded good profitability last quarter. Within retail segment, we generated higher sales especially due to successful promotion activities and better results on whole net of Benzina fuel stations," said the Chairman of the Board of Directors and CEO of Unipetrol, Marek Świtajewski, adding: „Unipetrol positively welcomes and appreciates approval of new antifraud legislation. The effective implementation of new regulations should have major positive impact on the entire fuel market and should enable retail segment development in the near future."
In the refinery segment the volume of crude processed in Q2 reached 903 kt (-11 % y/y), mainly due to unplanned Kralupy refinery shutdown at the turn of May and June. Nominal utilisation ratio stayed q/q flat on 80% in Q2 (+1% y/y). The refinery segment recorded EBITDA LIFO of CZK -151m in 2Q13, mainly due to disappearing Brent-Ural discount, lower refining margins (both gasoline and diesel) and lost sales volumes due to Kralupy refinery shutdown. Decrease fuel imports to theCzech Republic, observed from middle of May and connected to increased activities of official state authorities helped to improve q/q performance. Group sales of refinery products decreased in 2Q13 (-6% y/y), to 816kt.
EBITDA LIFO in the petrochemical segment amounted to CZK +682m in 2Q13, mainly due to very solid level of petrochemical margins and higher sales volumes of polymers. Segment was negatively affected by write-off of remaining book value of closed T200 power plant in Litvinov and additional provision for demolition with negative EBITDA impact of CZK 107m, negative impact from higher renewable surcharges (POZE) and CO2 allowances. Company recorded sales decrease of petrochemical products (-5% y/y) in 2Q13, to 389kt, mainly due to Urea production shutdown at the beginning of this year and June floods negatively impacting ammonia sales. Polymer sales were higher y/y, mainly in polyethylene (+27% y/y), but also in polypropylene (+7% y/y).
The retail segment recorded a positive EBITDA LIFO of CZK +145m in 2Q13, mainly due to higher sales volumes y/y in whole net of Benzina fuel stations and successful promotion with Tesco. Significant improvement of retail market conditions thanks to decrease of fuel imports observed from middle of May connected to increased activities of official state authorities, helped to increase retail sales volumes within Benzina network y/y. On the other hand, weaker nonfuel segment sales driven by Czech economy recession negatively impacted results of segment.
On 21 June 2013 PKN ORLEN S.A. signed an agreement with Rosneft Oil Company,Moscow,Russia, for Russian Export Blend Crude Oil (REBCO) deliveries, in the quantity of maximum 8.28 million tonnes to UNIPETROL RPA, s.r.o. The agreement is valid from 1 July 2013 to 30 June 2016. The contracted volumes can cover from 60% to 100% of UNIPETROL's total demand for REBCO crude depending on the economics of the contracted deliveries relative to the conditions prevailing on the crude oil market at a given time.
At the end of May Unipetrol announced new crude oil transportation contract between Česká rafinérská and Transpetrol. The contract determines new tariffs for crude oil transportation to theCzechRepublic through the Slovak branch of the Druzhba Pipeline for the year 2013. Positive impact on Unipetrol Group full-year 2013 EBIT is estimated at around CZK 45m compared to the year 2012.
In the half of June Unipetrol presented its new strategy for 2013 – 2017. Within the period of five years, Unipetrol wants to improve its financial performance and maintain it at a sustainably positive level that will allow it to make further investments and develop its resources. The targets adopted under the new strategy include:
Cumulative EBITDA (LIFO-based) at CZK 25bn in 2013-2017,Total capital expenditure (CAPEX) at CZK 19bn in 2013–2017,27% increase in average annual Free Cash Flow (FCF), to CZK 1.5bn,Increase of the retail market share to 20%,Maintenance of the annual average leverage ratio at up to 20% over the strategy horizon of 2013-2017.
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 3,700 people.
Contact:
Mikuláš Duda
Press Department Manager
Telephone: +420 225 001 407, +420 736 502 520
E-mail: mikulas.duda@unipetrol.cz