Czech Unipetrol net profit more than doubles

Downstream oil group Unipetrol reported a net profit of CZK1.5bn in Q3, thus beating market consensus for profit of some CZK1.3-1.4bn) and more than doubling from the CZK722m net profit reported a year ago, the company announced on Thursday. Unipetrol’s revenues grew by CZK7.8bn (34%) y/y to CZK31bn, slightly higher than market consensus for about CZK30bn. EBITDA LIFO amounted to CZK3.4bn, which represented an annual increase of nearly CZK1.5bn or 77%, the company said. In the downstream segment, which consists of refinery and petrochemical part, the Unipetrol group reported operating profit of CZK3.1bn in Q3, up by 92% y/y thanks to the stable operation of both refineries and an annual increase in the utilization of production capacities to 97% from 48%. The steam cracker used 85% of its capacity which was seen in a significant increase in sales volumes of petrochemical products – -by 113% y/y to 525,000 tons. In Q3 Unipetrol continued in the construction of the new polyethylene unit PE3 the construction of which is completed at 70% and is to be fully completed by end-2018. Despite the decrease in fuel margins, in the retail segment the Unipetrol group reported operating profit EBITDA LIFO of CZK370m, up by 40% y/y, thanks to the continuing favourable macroeconomic environment and increased fuel sales. The opening of nine new filling stations, which Unipetrol took over from OMV, has also contributed to the successful results. So far Unipetrol has taken over 50 stations registering a total of 396 filling stations in its Benzina network. In January-September the group reported a net profit of CZK7.9bn, up by 108% y/y, with revenues increasing by 50% y/y to CZK91.9bn, while EBITDA LIFO – by 98% y/y to CZK13.6bn.

Unipetrol is 63% controlled by Poland’s PKN Orlen, while Paulinino Limited of Czech-Slovak financial group J&T holds another 20%. In June, Unipetrol’s shareholders approved dividend of CZK 8.30 per share, paying out roughly CZK 1.5bn in total. Minority shareholders, such as Paulinino Limited, demanded dividend of CZK 18.50 per share.

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