MOSCOW (MRC) -- In Q3 2015, Czech petrochemical group Unipetrol recorded operational profit (EBITDA LIFO) of CZK 3.002 bn and net profit of CZK 1.582 bn, as per the company's report.
Very favourable macroeconomic conditions and increased refinery products sales including Benzina fuels stations network supported positive financial results of the company. The results of the company were affected by the extraordinary situation at the steam cracker from 13 August.
"The impacts of extraordinary situation in Zaluzi were reduced among others, thanks to cooperation with the majority shareholder PKN Orlen, who helped to secure deliveries of some feedstock and products," says CEO and Chairman of the Board of Directors of Unipetrol Marek Switajewski. "The situation at the place of the accident is fully stable and safe, the facility was completely inertized from the residual hydrocarbons. Our priority remains the safety on which we will put a maximum emphasis, both during the repair works and during the subsequent restart of production," adds Marek Switajewski.
The property damage that were caused on account of the extraordinary event from 13 August 2015 is estimated to CZK 597 million (net book value). The company books the impairment of the asset in this value within the Q3 2015 financial results. Unipetrol is insured against both property & mechanical damages and business interruption. Unipetrol estimates the lost profit not covered by business interruption insurance will amount to approximately CZK 1.6 bln in Q3. The restart of partial operation of the steam cracker (on the level of 65 %) as well as related petrochemical production and an increase of the refinery utilization ratio of the Litvinov refinery should be realized in July 2016. Standard operation of the steam cracker unit at maximum capacity utilization is very roughly estimated from October 2016.
In the downstream segment that combines refinery and petrochemical parts, the company recorded EBITDA LIFO of CZK 2.719 bn in 3Q15. The operational profit was positively influenced by significantly better refinery products sales and lower crude oil prices, supporting high margins on refinery products. Combined petrochemical margin reached 942 EUR/t. On the other hand company had to account impairment to damaged assets on steam cracker of CZK 597 m in connection with the extraordinary event in Zaluzi from 13 August.
Sales volumes of petrochemical products decreased to 332 kt in Q3 (-26% y/y). Unipetrol restarted production of polymers at Litvinov plant - polyethylene and polypropylene thanks to external feedstock deliveries of ethylene and propylene that are under normal circumstances produced by the steam cracker unit at the Litvinov plant.
As MRC informed previously, in late August 2015, Unipetrol declared force majeure on the petrochemical production section of its Litvinov complex, in the Czech Republic, following a 13 Aug. fire at the 544,000-t/y ethylene cracker.
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