In Q1 Unipetrol Group results were influenced mainly by ongoing negative influence of Czech and EU economy recession and growing imports within grey zone which negatively impacted oversupplied Czech market. Company posted positive EBITDA of CZK 540m, with revenues of CZK 24.776bn in Q1 (-3% y/y).
„Unipetrol group can feel the ecconomical slow down in decreasing demand for fuels on both the retail and wholesale market, including strong competitive supply-side pressure on gross profit unit margins. We consider the situation regarding grey zone imports of fuels to the Czech market as critical,“ said the Chairman of the Board of Directors and CEO of Unipetrol, MarekŚwitajewski, adding: „The EBIT of Unipetrol was positively affected mainly by petrochemical segment, which recorded significantly higher combined petchem margin. This segment has recorded positive EBIT in three consecutive quarters.“
Operational profit (EBIT) was negative of CZK -70m. During the Q1, company recorded net result of CZK -148m. Net result was lower than EBIT loss due to net finance costs at CZK 93m, partly compensated by booked income tax credit of CZK 15 m.
In the refinery segment the volume of crude processed in Q1 reached 896 kt, similar volume as in Q1 2012 (906 kt). Nominal utilisation ratio increased to 80% in Q1 (+9% y/y). The refinery segment recorded EBIT of CZK -455 in 1Q13, mainly due to weak winter seasonality affecting refinery margins and sales, Czech market profound oversupply due to growing imports within grey zone. Group sales of refinery products decreased (-2% y/y) in 1Q13, to 737kt.
EBIT in the petrochemical segment amounted to CZK +427m in 1Q13, mainly due to good level of petrochemical margins and results of internal optimization projects. Group sales of petrochemical products decreased (-8% y/y) in 1Q13, to 403kt, mainly due to weak demand for polymers as a result of full stocks of many clients at the end of 2012. Polypropylene sales remained constant y/y in Q1, polyethylene lower by 17% y/y. Permanent shutdown of the urea unit in Litvínov was in-line with plan as of 1st January 2013.
The retail segment recorded a negative EBIT of CZK -34m in 1Q13, mainly due to weak seasonality, recession of the Czech economy, very fierce price competition and strong negative effect of fuel imports within grey economy. Company recorded lower unit margins, especially on gasoline. High margin premium fuels VERVA sales decreased in 1Q13 y/y due to lack of extreme winter conditions that prevailed in February 2012. At the beginning of April, BENZINA and VÍTKOVICE Doprava have concluded a reservation contract for 20 locations for building CNG filling stations. These stations should be built at the BENZINA gas stations within two to three years. The concluded contract will thus contribute to the important development process of the network of CNG filling stations in the Czech Republic.
Targets for 2013:
Financial targets:
• Operational excellence program – positive EBIT impact of CZK 1.5 bn CZK
• Positive EBIT
• Planned CAPEX of CZK 2.7 bn
Non-financial targets:
• Unipetrol Group mid-term strategy is planned to be announced till the end of second quarter 2013
• Kralupy refinery periodical turnaround in September and October
• Slightly lower crude oil throughput at 3,761 kt due to Kralupy refinery periodical turnaround (3,927 kt in 2012)
• Continuation of Paramo restructuring
• Preparation and construction of 4 new self-service Express 24 filling stations
• Increase of Benzina’s retail market share to 14.2% from 13.7% in 2012
• Active role of UNIPETROL in supporting legislative measures on fuels grey zone mitigation and sustainability of regulatory related costs regarding energy from renewables sources
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 Department Manager
Telephone: +420 225 001 407, +420 736 502 520
E-mail: mikulas.duda@unipetrol.cz