MOSCOW (MRC) -- In Q3 2014 Unipetrol Group posted very good results and significantly increased its profitability, as per the company's statement.
Company recorded operational profit (EBITDA LIFO) of CZK 2.304 bn. Net profit reached CZK 1.399 bn(USD64.5million). Revenues increased y/y by 37% to CZK 34.041 bn in 3Q14.
"Very good results in the third quarter were affected by significant improvement in refining margins which were the highest since the beginning of 2013, and an increase also in the petchem margin. Important is, that we managed to take advantage of positive macroeconomic conditions through very reliable production and higher sales volumes across all segments," says CEO and Chairman of the Board of Directors of Unipetrol Marek Switajewski.
Operational profit EBITDA LIFO in the petrochemical part of downstream segment amounted at CZK 1.336 bn in 3Q14. Company recorded a sales increase of petrochemical products to 449kt in Q3 (+23% y/y). Higher sales were driven by very good market demand and production without limitations. Steam-cracker utilization ratio reached 89% in Q3. The sales of polyethylene increased by 25% and of polypropylene by 32%. On the other hand renewable energy charges (OZE) continues to burden results of the petrochemical business.
As MRC reported earlier, last year, Unipetrol acquired technology and production rights for a new polyethylene unit and wants to pick a contractor for the project in the first half of 2014. The company, after posting net losses in 2011 and 2012, laid out plans to invest almost USD1 billion over the next five years and make its petrochemical segment the biggest contributor to profit.
Unipetrol expects petrochemicals to become the largest source of revenue for the company in 2013-2017. Unipetrol wants to use the favourable market conditions to reinforce its position on the petrochemical market and optimise its operations.
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.
MRC