Unipetrol Group Q3 revenues down 12%

Revenues reached CZK 24.859bn in Q3 (-12% y/y). Results were negatively influenced by worse refining macro, problems in petrochemical production resulting in lower sales, lower refining margins and higher renewable surcharges (POZE).

Stable good level of petrochemical margins and better sales in retail segment mitigated these negative factors.

Highlights:

-Positive EBITDA LIFO of CZK 235m in Q3
-Solid fuel sales of BENZINA network
-Licence purchase for new polyethylene unit PE3
-New contract with Transpetrol signed for 2014
-Agreement with Administration of State Material Reserves – Czech Republic signed

In the refinery segment, the volume of crude processed in Q3 reached 902 kt (-14 % y/y), due to scheduled complete turnaround of Kralupy refinery in September (and October) within 4-year cycle and two steam cracker shutdowns. Nominal utilization ratio stayed q/q flat on 80% in Q3.

The refinery segment recorded EBITDA LIFO of CZK -256m in 3Q13, mainly due to poor refining macro, lower refining margins and weak Brent-Ural discount. Group sales of refinery products decreased to 836kt (-6% y/y) in Q3, due to big one-off sales in September 2012, dramatic increase of illegal fuel imports by rails in the second half of September and in October (slightly compensated by higher exports) and scheduled Kralupy refinery turnaround.  .

EBITDA LIFO in the petrochemical segment amounted to CZK +361m in 3Q13. The results of the segment were negatively affected by unplanned shut-downs of production, which resulted in lower sales y/y. On the other hand positive impact was visible from very solid level of petrochemical margins, higher positive inventory revaluation y/y and development of FX – stronger EUR vis-à-vis USD. 

Company recorded sales decrease of petrochemical products to 366kt in Q3, mainly due to June floods in the Czech Republic, negatively impacting supplies of ammonia to Lovochemie and ammonia and ethylene to Spolana, and two steam cracker shutdowns, first starting in the middle of July and second in the middle of September.

The retail segment recorded a positive EBITDA LIFO of CZK +147m in 3Q13, mainly due to higher fuel margins, and higher fuel sales volumes, in spite of declining retail market in the Czech Republic overall.

The better sales were reached mainly due to successful promotion activities. Retail non-fuels sales slightly better y/y. With new legislation valid from November 2013, Benzina expects improvement of the Czech fuels market environment and additional mitigation of illegal imports.