Despite a 7 % year-on-year increase in revenue (to Kč 24.065 billion), Prague-listed downstream oil group Unipetrol on Friday announced a third-quarter operating loss of Kč 230 million — versus a profit of Kč 238 million in 3Q10 — following a planned outage at its biggest plant, the Litvinov refinery.
“The results of the third quarter were significantly influenced by the ongoing turnaround in Chempark Litvinov. Total capitalized expenditures related to turnaround reached over Kč 800 million in 3Q11,” Unipetrol CEO and board chairman Piotr Chełmiński said in a statement. “The best results were recorded in retail segment in 3Q11. We generated record high sales of premium higher-margin VERVA fuels.”
J&T Banka analyst Bohumil Trampota said in a note to clients that the quarterly sales figures for the Czech refiner, which is majority owned by Poland’s PKN Orlen, came in “slightly below market expectations.”
Unipetrol’s third-quarter 2011 results
Source: Unipetrol, J&T Banka
EBITDA for 3Q11 reached Kč 505 billion (-53.5% y/y), below market consensus by 11.7%, he said, and below J&T Banka’s estimate by 7.2%, while the EBIT loss of Kč 230 million was lower by 6.1% than market had expected (Market: -Kč 245 million).
“EBIT beat projections thanks to lower reported depreciation charges compared to market expectations. The operating level was burdened by the refining and petrochemical segments due to bad macroeconomic environment (margins), a regular shut-down and lower sales volumes. The petrochemical sector was affected by a negative revaluation of inventories,” Trampota said.
“On the other hand, it was boosted by one-off items, including a refunded fine from the European Commission of Kč 236 million and operations in carbon allowances totalling Kč 100 million. Without these one-off items the operating loss would be larger.”
To view Unipetrol’s full third-quarter results click here.