Unipetrol posted EBIT of CZK +942m in 3Q12

„Compared to the second quarter, we increased the company's revenues, mainly due to maximum utilization of refining capacities during the peak of motorist season. Moreover we posted positive petchem result due to increase in sales,” said the CEO and Chairman of the Board of Directors of Unipetrol, Piotr Che³miñski, adding: “The retail segment was rather weak due to negative unit margins development, saving behavior of customers due to recession of Czech economy and growing frauds with imported untaxed fuels.”

In the refinery segment the volume of processed crude oil increased by 11% y/y, from 941 kt in 3Q11 to 1043 kt in 3Q12, implying nominal utilisation ratio reached 93%. The refinery segment recorded EBIT of CZK +503m in 3Q12. The results of segment were positively influenced by significant increase of refining margin by 101% q/q and slightly higher refining sales by 3% thanks to maximum and reliable production as well as peak of seasonality.

Significantly stronger USD against CZK y/y also improved profitability of refining segment. High capacity utilization was partly caused due to lower total conversion capacity of Unipetrol refineries after discontinuation of crude oil processing in Pardubice refinery.

EBIT in the petrochemical segment amounted to CZK +295m in 3Q12, mainly due to significant positive effect of stock revaluation. Group sales of petrochemical products increased (+13% q/q) in 3Q12, to 466kt, mainly due to reliable production and customers’ restocking.  Polyethylene sales were key driver of q/q positive dynamics. Company recorded lower model olefin margin q/q, though partly compensated by higher model polyolefin margin. In y/y comparison combined petrochemical margin stable. Performance of this segment was negatively influenced by still rather weak macro dynamics in the core markets.

The retail segment recorded a positive EBIT of CZK 146m in 3Q12, however helped by the release of provision (in the amount of CZK 131m) created in connection with fine granted ineffective by antitrust authority in 2002. The result was affected by negative unit margins development (diesel side driven) and growing frauds with imported untaxed fuels (as seen in increasing number of fuel traders). Retail sales volumes were higher q/q, though lower y/y mainly in gasoline sales due to recession of Czech economy and saving behavior of customers. In 3Q Benzina opened second self-service filling station Expres 24 in Hradec Králové and continued in building network of STOP CAFE fastfood restaurants. Up to now, 74 of them were opened. The company also continues to modernize its net of fuel stations and began implementing two larger projects on the D3 motorway near Tabor.