​• Revenues increased by 15% y/y to 28.9bn CZK in Q4
• Better sales volumes y/y across all segments
• Significant increase of volume of crude oil processed in Q4 to 1,302 kt (+44% y/y)
• Refining utilization ratio reached 88%, high steam-cracker utilization at 90% in Q4
• Significant improvement of financial performance in 2014. EBIDTA LIFO of 3.102 bn CZK.

In Q4 of last year, Unipetrol continued in very good results from the previous period and confirmed a significant improvement of its operating indicators and also profitability. Company recorded operational profit (EBITDA LIFO) of CZK 2.618 bn. Net profit reached CZK 598 m. Revenues increased y/y by 15% to CZK 28.939 bn in 4Q14. During the last three months of 2014, Unipetrol managed to maintain a very high utilization of its production units. Refinery utilization has reached the level of 88%, within the petrochemical production steam-cracker unit was utilized at the level of 90%.

"Due to reliable production, we were able to transform the favorable macroeconomic conditions from the end of 2014 into higher sales volumes, both within the petrochemical and refinery products. The profitability of downstream segment was supported by higher margins caused by declining prices of crude oil, but also by weaker rate of Czech crown against USD," says CEO and Chairman of the Board of Unipetrol Marek Świtajewski, adding: “We registered positive dynamics within the retail segment, where the declining fuel prices, progressive recovery of the domestic economy and the limitation of the grey zone contributed to higher sales." 

In the downstream segment, that combines refinery and petrochemical segments, the company recorded EBITDA LIFO of CZK 2.330 bn in 4Q14. The results in the segment was positively influenced by better margins (both refining and petrochemical) supported by profound decline of crude oil prices, development of FX – weaker exchange rate of CZK against USD and higher sales volumes. Grey zone reduction on the fuel market had a positive impact on sales volumes and margins. Last but not least, positive result of the downstream segment has been affected by lower energy costs thanks to significantly lower crude oil price and ongoing projects within the Operational Excellence. On the other hand, results of the segment were negatively affected by inventory revaluation effect (-775 m CZK) or refining assets impairment of CZK -151 m.

In the refinery part of the downstream segment, the volume of crude oil processed in Q4 reached 1,302 kt, which represents 44% growth y/y. The refinery segment recorded EBITDA LIFO of CZK 118 m in Q4, group sales of refinery products increased to 1,050 kt (+38% y/y), driven by both diesel and gasoline sales. 

Operational profit EBITDA LIFO in the petrochemical part of downstream segment amounted at CZK 2.213 bn in 4Q14. Company recorded a sales increase of petrochemical products to 439kt in Q4 (+4% y/y), caused by higher market demand. Increase in market demand was driven by lower price level due to steep decline of crude oil price.  The sales of polyethylene increased by 13% and of polypropylene by 12%. 

The retail segment recorded a very good operational profit EBITDA LIFO of CZK 316 m in 4Q14, mainly due to positive impact of fuel margins and higher fuel and non-fuel sales volumes, supported by set of activities implemented in pricing and marketing. Positive GDP dynamics of the Czech economy also supports results of the segment. Market share of Benzina reached 15 %.

Financial results for 2014 were significantly affected by accounting of several one-off accounting items. The most significant of these items was the impairment of refining assets (-4.721 bn CZK) in the second quarter of the year. Without the one-off effects, the Unipetrol Group would post a net profit of 2.094 bn CZK for last year, with their inclusion company managed to reduce the net loss to -556 m CZK (-1.396 bn in 2013).

The revenues of the company Unipetrol grew by 25% y/y and amounted to 124.229 bn CZK. This increase was supported by the finalization of purchase of Shell´s stake in Česká rafinérská and related increase of refinery capacity. In the second half of year 2014, Unipetrol also significantly increased sales across all segments of its business. In 2014, the company achieved operational profit before interests, taxes, depreciation and amortization (EBITDA LIFO) of 3.102 bn CZK. During the year, the company continued in implementation of projects in improving of the Operational Excellence, with the positive effect on operational profit of 1.062 bn.