Prague, 5 August 2011 – The Unipetrol Group posted an operational profit (EBIT) of CZK 224m, with revenues of CZK 25.948bn (+11% y/y) in 2Q11. During the period company recorded net result of CZK -1m. This result was influenced mainly due to negative trends in macro environment. The y/y decrease in EBIT was caused mainly by worse refinery margins, negative effect of more expensive bio components as well as lower fuel unit margins and gasoline demand in retail distribution.

“The second quarter was difficult especially for refinery sector. However, EBIT achieved in the petrochemical segment increased y/y by 56% during the second quarter and more than doubled in the first half of year 2011. The Group results were also positively influenced by significant cost decrease and the lower consumption of allocated CO2 allowances,” said the CEO and Chairman of the Board of Directors of Unipetrol Piotr Chełmiński.

The petrochemical segment was the biggest contributor to the total EBIT (CZK 465 m). In annual comparison the EBIT of the segment recorded 56% increase due to higher combined petchem margins, lower fixed costs and better sales volume mix. On the other hand, the segment was negatively influenced y/y by negative FX effect of CZK/EUR strengthening.

The retail segment represented mainly by Benzina generated record high sales of diesel and 16% increase in sales volumes of higher-margin VERVA fuels. The retail segment recorded a positive EBIT of CZK 86m in 2Q11. Historically the highest motor fuels prices in the Czech Republic as well as prevailing fuel price differential to neighbouring countries influenced segment negatively. Benzina’s market share in retail is estimated to increase to 14.3%. It currently runs 337 fuel stations in the Czech Republic and aims to increase its market share to 15% in sales.

The volume of crude oil processed increased by 3% y/y, from 1,082 kt in 2Q10 to 1,112 kt in 2Q11, as the nominal utilisation ratio reached 87%. The Group sales of refinery products declined (-4% y/y) in 2Q11 mainly due to lower gasoline sales and the significant decline in product margins. Performance of the refinery segment was negatively affected by higher differential between Brent and other sweet crude oils which more than doubled y/y. The segment was positively influenced by Brent-Ural differential improvement.

Continuing in the strict cost management as one of its priorities for this year, the Group decreased its fixed costs by over CZK -100m y/y in 2Q11. The overall goal for this year is approximately CZK 200m cost reduction.

Attachment No. 1

Consolidated un-audited financial results (CZK million)

1) Net result attributable to shareholders of the parent company

EBIT Segment Breakdown (CZK million)

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