Prague, 10 February 2011 – The Unipetrol Group posted an operational profit (EBIT) of CZK +122m, a net profit of CZK -68m, in 4Q10 with revenues of CZK 22bn (+20% y/y). Petrochemistry and retail were key contributors to the positive EBIT. The Group thus generated EBIT of CZK of +1.7bn and a net profit of CZK 937m with revenues of CZK 86bn (+ 28% y/y) in 2010.

The Group increased its sales volumes of refinery products (+3% y/y), as well as monomers and polymers (+10% y/y). Benzina further strengthened its position as market leader increasing its market share to est. 14.2%. The Group’s financial position further improved with its cash balance higher than debts by more than CZK 2.5bn. Financial results were influenced by positive as well as negative one-off charges.

In terms of financial planning, fixed costs were reduced by more than CZK 130m and positive free cash flow CZK 3.7bn was achieved. From an operations perspective, the Group processed 4,352 kt of crude oil (+ 6% y/y). Benzina added 3 new filling stations to its portfolio and facelifted or rebranded 25 other stations. The new butadiene unit, a joint venture with Synthos Kralupy, commenced production in the middle of the year. Furthermore, the Group successfully finished all planned maintenance work, both in the refining and petrochemical segment.

“Last quarter was difficult but profit for the year demonstrates that implemented economical measurers have borne their fruit. The fourth quarter reminded us that, given the external circumstances, keeping our focus on efficiency improvements and cost control is the most efficient way to succeed in bringing additional value to our shareholders,”saidthe CEO and Chairman of the Board of Directors of Unipetrol, Piotr Chełmiński.

Commentary by segments:

In 4Q10, EBIT in the petrochemical segment reached CZK 144m. The most important factors positively influencing the segment were year-to-year: a better sales volume mix with a higher share of more profitable polyolefins and higher combined petrochemical margins. On the other hand, segment results were also influenced by the strengthening USD against the EUR, accelerated steam cracker shutdown and T200 related costs. The petrochemical segment generated EBIT totalling CZK 715m in 2010.

EBIT in the refining segment in 4Q10 amounted to CZK -27m. Performance in this segment was negatively influenced by pressure on wholesale margin, technical issues relating to the hydrocracking unit and overheads stemming from small renovations. Positive effects were represented by y/y higher sales volumes, better refining margins (+226%) and a wider B-U differential (+124%). In total, EBIT for refining amounted to CZK 466m in 2010.

Even though the retail segment was negatively affected by lower gasoline demand and weaker non-fuel sales (both y/y), itposted a positive EBIT of CZK 110m in 4Q10. Higher fuel unit margins, better diesel demand, as well as increased demand for premium fuels, positively influenced the performance of this segment compared to the same quarter last year. The segment generated EBIT of CZK 547m in 2010.

Outlook for the coming period:

In terms of 2011 targets, strict cost control will continue while fixed costs are planned to be decreased by ca CZK 200m. The Group is planning to increase its EBIT margin and hold its CAPEX at approx 2010 level (ca CZK 3.0bn). Operational plans include processing a higher amount of crude oil and proceeding with modernization and extending Benzina’s fuel station network. With regard to maintenance plans, the aim is to successfully manage upcoming shutdowns both in the refinery and petrochemical segments (esp. a 5-week cyclical regular shutdown of refinery and petchem units in Litvínov in 3Q 2011).

Attachment No. 1

Consolidated un-audited financial results (CZK million)

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: 
Bořek Konečný 
Communication Specialist 
Telephone: +420 225 001 670, +420 736 502 600 
E-mail: borek.konecny@unipetrol.cz