​• Continuous significant increase of sales volumes across all segments
• Very tough refining macro environment continued
• Profitability negatively impacted by impairment of fixed assets in refinery segment
• Operating profit EBITDA LIFO excluding impairment reached positive level of CZK 1.044 bn
• Petrochemical segment continued solid performance with EBITDA LIFO of CZK 856 million
• New crude oil transportation contract between Česká Rafinérská and Transpetrol for 2015 – 2016 signed

Prague, 23 July 2014 – In Q2 Unipetrol Group posted revenues of CZK 32.440 bn, indicating an increase of 31% y/y compared with the Q2 of 2013. The increase was especially driven by the operation of higher refining capacity in Ceska rafinerska and higher sales volumes across all segments (refinery, petrochemical, retail).
Operational profit EBITDA LIFO was affected by one-off impairment of refining segment assets in Q2. Company recorded operational profit (EBITDA LIFO) of CZK -3.677 bn. Operating profitability excluding one-off impairment reached positive result of CZK 1.044 bn CZK in Q2 which implies improvement by CZK 381 m compared with Q2 of 2013.

 „We recognized impairment of fixed assets of the refinery segment, due to the deteriorated mid-term outlook for refining business profitability. Operational profit EBITDA LIFO excluding this one-off item reached positive level of one billion CZK," said Marek Świtajewski, Chairman of the Board of Directors and CEO of Unipetrol. „Very good results were posted especially within petrochemical segment, but higher sales volumes were recorded within all three segments y/y," added Marek Świtajewski.

In the refinery segment, the volume of crude processed in Q2 reached 1,331 kt, which represents 47% increase y/y. Nominal utilization ratio increased to 90% in Q2. The refinery segment recorded EBITDA LIFO of CZK -4.647 bn in 2Q14, mainly due to one-off impairment of fixed assets driven by deteriorated mid-term outlook. Excluding this one-off item the refinery segment posted slightly positive result (CZK +74 m), first time since 4Q12. Group sales of refinery products increased to 1,130 kt (+39% y/y) in Q2, mainly due to completion of the transaction and increased share in Ceska rafinerska and thank to production without limitations compared to 2Q13.

Operational profit EBITDA LIFO in the petrochemical segment amounted to CZK 856m in 2Q14. Company recorded a sales increase of petrochemical products to 445kt in Q2 (+14% y/y), due to higher sales of both olefins and polyolefins. The results of the segment were also positively influenced by favourable GDP dynamics. On the other hand, there was negative macro impact driven by significant decline of olefin margins (-10% y/y). Renewable energy charges (OZE) continues to burden results of petrochemical segment.

The retail segment recorded a positive EBITDA LIFO of CZK 120m in 2Q14, mainly due to higher fuel and non-fuel sales volumes, supported by moderate economic recovery in the Czech Republic and partly by the new legislation for mitigation of illegal imports. Benzina increased its market share from 14.1% to 14.9% y/y. Results of the segment were negatively affected by lower fuel margins, gasoline in particular, caused by strong competition on the Czech market, especially in Prague and surroundings.

On 25 June 2014, ČESKÁ RAFINÉRSKÁ, a.s. and the Slovak national pipeline operator TRANSPETROL, a.s. signed a pipeline transportation contract that determines new tariffs for crude oil transportation to the Czech Republic through the Slovak branch of the Druzhba Pipeline for the years 2015 and 2016. Russian Export Blend Crude Oil (REBCO) from the Russian Federation is transported through the Druzhba Pipeline to the Litvínov refinery in the Czech Republic which is owned and operated by ČESKÁ RAFINÉRSKÁ, a.s. The part of the Druzhba Pipeline located on the territory of Slovakia is owned and operated by TRANSPETROL, a.s. The contract closed with Transpetrol is important in terms of the Czech Republic’s oil security.