Home / Knowledge / News / Textiles / UNIPETROL announces its results for H1 2008
UNIPETROL announces its results for H1 2008
25
Aug '08
The Unipetrol Group reports net profit of CZK 708m for the first half of this year. As in the first quarter of this year, UNIPETROL also suffered from high crude oil prices, very low petrochemical margins, and strong Czech currency in the second as well.

These external factors were mostly responsible for pushing the net profit for Q2 down to CZK 302m, significantly less than in the same period of the previous year, when the market conditions were extremely good and allowed UNIPETROL to report record quarterly earnings.

The revenues in the first six months of this year amounted to CZK 49.230bn, which means an 8% y/y increase. Although the industry benefited from an improvement of petrochemical margins and stabilisation of the exchange rates in July and August, the mid-term development is hard to predict.

Comments on H1 2008 results:
Profitability of the petrochemical segment, which was the main driver of UNIPETROL's good financial results last year, was affected the most by the unfavourable macroeconomic trends.

The growth trend for virgin naphtha prices from the first quarter continued into the second quarter as well. Virgin naphtha is the main feedstock for petrochemical production and as the selling prices of petrochemical products are fixed with the customers for the entire quarter, the feedstock price increase lowers the margins.

This negative trend culminated in June. For instance, the model olefin margin, calculated on the basis of the average European price, was 280 EUR/t in Q2 2008, compared to 376 EUR/t the year before.

Moreover, as the prices of petrochemical products, even those sold domestically, are quoted in EUR, therefore the strengthening of CZK against EUR (an average rate in Q2 2008 was 24,8 CZK/EUR compared to 28,3 CZK/EUR a year before) ate up an additional part of potential earnings.

On the other hand the refining segment showed good recovery in Q2, significantly improving both margins (especially q/q) and sales volumes (both q/q and y/y). This allowed the refining segment to record solid results and become the strongest contributor to the total H1 2008 EBIT.

Retail traditionally performed well and brought y/y growth in the first six months of this year (EBIT grew by 10%).

Outlook for the rest of 2008:
“We came through a very difficult period in the first half of this year. We had to face historical growth of crude oil prices together with record speed of strengthening of the local currency.

Now we see a chance for improvement – oil prices are going down and exchange rates also seem to stabilise. However, the macroeconomic development is still hard to forecast”, says François Vleugels, CEO of UNIPETROL.

According to Mr. Vleugels, as soon as the market conditions improve on a more stable basis, the company will start generating strong cash again, as in the previous year.

Although the company is in a very good condition internally, the management decided to respond to the macroeconomic situation with several initiatives resulting in further operating cost savings, better management of capital expenditures, and reduction of net working capital by the end of this year.

UNIPETROL a.s.


Must ReadView All

Sri Lanka’s apparel exports rise after EU GSP+ reinstatement

Apparel/Garments | On 18th Nov 2017

Sri Lanka’s apparel exports rise after EU GSP+ reinstatement

Sri Lanka’s apparel exports from January to September 2017 has...

Bangladesh plans 2 leather estates in Rajshahi, Chittagong

Apparel/Garments | On 18th Nov 2017

Bangladesh plans 2 leather estates in Rajshahi, Chittagong

Bangladesh Prime Minister Sheikh Hasina has said two more leather...

ASEAN, Hong Kong sign free trade agreement

Textiles | On 18th Nov 2017

ASEAN, Hong Kong sign free trade agreement

The Association of Southeast Asian Nations (ASEAN) and Hong Kong...

Interviews View All

Cyril Pereira
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

'Major problem in the textile machinery manufacturing industry is the lack ...

Kaizad Hansotia
GetNatty

Competition is the best thing that can happen to a startup

Sonia Agarwal
Whitenife

‘The terms eco-friendly and organic are common but everyone perceives them ...

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

November 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
68.5%
No
12.4%
Skip
19.1%

Total Votes: 89

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.8%
No
30.3%
Skip
7.9%

Total Votes: 89

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
86.5%
No
10.1%
Skip
3.4%

Total Votes: 89

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
80.9%
No
9.0%
Skip
10.1%

Total Votes: 89


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search