Unipetrol posts net profit of 2.9 billion crowns in second quarter

Photo: Tomáš Adamec / Czech Radio

Czech petrochemical giant Unipetrol announced its financial results for the second quarter of 2018 on Friday. The company recorded a net profit of 2.9 billion crowns, down 687 million crowns in annual terms. The group’s total revenues reached 31.1 billion crowns, a year-on-year decrease of 44 million crowns.

Photo: Tomáš Adamec / Czech Radio
The Prague-listed company’s economic results were negatively affected by an unfavourable macroeconomic environment, especially the sharp rise in oil prices and consequent lower margins in refinery and petrochemical parts.

The petrochemical group, majority owned by Poland’s PKN Orlen, also confirmed that it reached a final insurance compensation settlement of 1.6 billion crowns with the re-insurers for loss of profit and damages resulting from the incident at the steam cracker in the Litvínov chemical plant in August 2015. The total settlement with the reinsurers will have reached 12.2 billion crowns.

Unipetrol’s capital investments in the second quarter amounted to 2.3 billion crowns and were primarily aimed at the construction of the new PE3 polyethylene unit, the planned maintenance and modernisation of the Kralupy nad Vltavou refinery.

“By extending our production to Litvínov, we can also expand our production capacities more efficiently, increase distribution flexibility and respond more effectively to seasonal fluctuations in fuel consumption,” said Krzysztof Zdziarski, CEO of Unipetrol.

Unipetrol’s retail segment showed an operating profit of 404 million crowns in the second quarter of 2018, which is roughly the same as in the previous year. The result was driven mainly by higher fuel sales.

The Unipetrol Group has also continued to modernize its network of Benzina petrol stations, extending its STOP CAFE food concept to another 19 stations. Overall, a total of 168 Benzina petrol stations have been equipped with the food outlets to date.

Unipetrol, which employs more than 4,600 people, created revenue of over 122 billion crowns last year. Since 2005, the company has been controlled by the Polish group PKN Orlen, the largest crude oil processor in Central Europe.