​• The company posted an operational profit amounting to CZK 3.002 bn in Q3
• The volume of refinery products sales amounted to 1,679 kt in Q3 (+43% y/y)
• Benzina significantly increased fuel sales y/y and strengthened its position on the market
• The project of new polyethylene unit PE3 was launched in Q3
• The extraordinary event at the steam cracker from 13 August affected the operational performance (processed crude volumes, refining and mainly petrochemical sales volumes)

In Q3 the company recorded operational profit (EBITDA LIFO) of CZK 3.002 bn and net profit of CZK 1.582 bn. Very favourable macroeconomic conditions and increased refinery products sales including Benzina fuels stations network supported positive financial results of the company.  The results of the company were affected by the extraordinary situation at the steam cracker from 13 August.

"The impacts of extraordinary situation in Záluží were reduced among others, thanks to cooperation with the majority shareholder PKN Orlen, who helped to secure deliveries of some feedstock and products,” says CEO and Chairman of the Board of Directors of Unipetrol Marek Świtajewski. "The situation at the place of the accident is fully stable and safe, the facility was completely inertized from the residual hydrocarbons. Our priority remains the safety on which we will put a maximum emphasis, both during the repair works and during the subsequent restart of production," adds Marek Świtajewski.

The property damage that were caused on account of the extraordinary event from 13 August 2015 is estimated to CZK 597 million (net book value). The company books the impairment of the asset in this value within the Q3 2015 financial results. Unipetrol is insured against both property & mechanical damages and business interruption. Unipetrol estimates the lost profit not covered by business interruption insurance will amount to approximately CZK 1.6 bln in Q3. The restart of partial operation of the steam cracker (on the level of 65 %) as well as related petrochemical production and an increase of the refinery utilization ratio of the Litvínov refinery should be realized in July 2016. Standard operation of the steam cracker unit at maximum capacity utilization is very roughly estimated from October 2016.

In the downstream segment that combines refinery and petrochemical parts, the company recorded EBITDA LIFO of CZK 2.719 bn in 3Q15. The operational profit was positively influenced by significantly better refinery products sales and lower crude oil prices, supporting high margins on refinery products. Combined petrochemical margin reached  942 EUR/t. On the other hand company had to account impairment to damaged assets on steam cracker of CZK 597 m in connection with the extraordinary event in Záluží from 13 August.

In the refinery part of the downstream segment, the volume of crude oil processed in Q3 reached 1,840 kt, which represents 34% growth y/y, thanks to higher refining capacity after completion of acquisition of ENI stake in Česká rafinérská. Utilization of refining capacities decreased on account of the extraordinary situation in Záluží to 85%. Sales volumes of refinery products increased to 1,679 kt (+43% y/y). 

The results of petrochemical part of downstream segment were most significantly affected by extraordinary situation in Zaluzi. Steam cracker has been shut down since 13 August. Sales volumes of petrochemical products decreased to 332 kt in Q3 (-26% y/y). Unipetrol restarted production of polymers at Litvínov plant – polyethylene and polypropylene thanks to external feedstock deliveries of ethylene and propylene that are under normal circumstances produced by the steam cracker unit at the Litvínov plant.

The retail segment recorded very good level of operational profit EBITDA LIFO of CZK 283 m in 3Q15. The result was positively affected by better fuel margins. Sales of fuels increased in the retail network Benzina y/y, supported set of activities implemented in sales and marketing, by lower price level on the market driven by decrease of crude oil prices and  by positive GDP dynamics. In Q3 Benzina also recorded increase in non-fuel sales. Benzina increased its market share y/y to 15.3%.