Unipetrol sinks into CZK 317.6m loss in Jan-Sept

Prague, Oct 25 (CTK) - Petrochemical group Unipetrol sank into a loss of Kc317.6m in the first three quarters of this year, while in the same period last year it posted a net profit of Kc334.8m, according to unaudited consolidated results the company published on its website Thursday.

Unipetrol's sales grew to Kc81bn from Kc73.1bn a year ago.

In Q3 alone, Unipetrol posted made a net profit worth Kc645m after a loss of Kc128m a year ago.

Sales in Q3 rose by 18 percent year-on-year to Kc28.4bn, mainly thanks to a notable strengthening of the dollar against the Czech crown as well as a higher volume of sales in the petrochemical segment.

Operating profit (EBIT) in Q3 amounted to Kc942m, partly thanks to income from revaluation of stocks in the amount of Kc455m.

"The figures, both operating and net profit, exceeded market expectations. We assess Unipetrol's results for the third quarter as positive," analyst Bohumil Trampota of J&T Banka said.

The operating profit was also influenced positively by a one-off impact worth Kc131m which involves the release of a provision created in connection with a fine imposed by the antitrust office UOHS on the Benzina company and operations with carbon credits.

Growing prices of crude oil and higher prices of refinery and petrochemical products also had a positive effect in Q3.

The retail segment posted an operating profit of Kc146m, also thanks to provision release.

Retail sales volumes were higher quarter-on-quarter but lower year-on-year, mainly due to lower petrol sales connected with the saving behavior of customers.

EBIT in the petrochemical segment amounted to Kc295m, mainly due to a positive effect of stock revaluation. In the same period last year, the segment showed a Kc270m loss.

The company is going to meet the target of a positive operating result for full 2012, CFO Mariusz Kedra said at a press conference. Refinery margins started to fall in Q4, so a certain correction can be expected by the year's end. Petrochemical margins are, on the other hand, developing at a stable rate, Kedra said.

In the refinery segment, the volume of processed crude oil rose by 11 percent quarter-on-quarter to more than 1 million tonnes in Q3. EBIT in the refinery segment reached Kc503m, compared with a loss in the previous quarter.

The improved result was influenced positively by higher margins and increased sales in connection with the peak of the driving season. The stronger dollar against the crown also had a positive influence on the 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 (Paramo)," Unipetrol said.

Unipetrol has secured crude oil supplies for November and December, company representatives said at a press conference.

Daily Hospodarske noviny wrote on Monday that Unipetrol was tackling with a limited capacity of the IKL pipeline.

Unipetrol focuses on oil refining, fuel distribution and petrochemical production. In 2005, the company became a part of the PKN Orlen group, the largest crude oil refining company in Central Europe. In the Czech Republic, Unipetrol ranks among the biggest companies in terms of sales.