Transcript Comments on financial results of the Unipetrol Group

UNIPETROL Group – Financial Results
for the period of 01.07- 30.09.2005
November 2005
Unipetrol Group – Financial Results for the period of 01.07-30.09.2005
Q1-Q3'04
CAS
Q3'04
CAS
Q1-Q3'05
IFRS
Q3'05
IFRS
19,475.5
6,935.1
23,507.3
8,001.7
2,986.4
965.4
3,656.9
831.5
Net result
849.7
272.0
1,944.1
455.4
Revenues
15,383.1
6,243.3
8,540.3
3,258.7
404.1
242.0
280.8
238.3
-242.6
-19.1
-362.5
-99.0
6,440.2
1,038.3
6,871.7
2,452.5
1,296.9
370.0
1,440.5
975.1
Net result
8.0
159.6
286.4
109.1
Revenues
7,680.8
2,823.6
7,937.0
2,385.9
EBITDA
714.1
215.1
879.9
564.6
Net result
154.8
37.2
253.6
31.3
Revenues
6,553.7
2,983.5
7,807.9
2,985.9
EBITDA
418.8
158.3
56.9
116.1
Net result
206.2
105.8
-153.1
-58.4
Revenues
3,678.6
1,213.5
4,267.4
1,271.9
506.5
123.0
425.8
392.1
Net result
10.7
-39.9
86.2
-76.2
Revenues
42,456.3
16,866.2
59,497.8
13,804.1
EBITDA
299.4
222.7
535.3
187.4
Net result
358.7
144.9
161.8
102.4
In '000 CZK
Che m ope tr ol a.s .
Revenues
EBITDA
Be nzina a.s .
EBITDA
Net result
Ce s k a Rafine r s k a a.s .
Revenues
EBITDA
Kaucuk a.s .
Par am o a.s .
Spolana a.s .
EBITDA
Unipe tr ol Rafine r ie a.s .
*by the end of 2004 the company did not prepared IFRS quarterly financial statements
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Unipetrol Group – Financial Results for the period of 01.07-30.09.2005
Consolidated financial highlights of Unipetrol a.s. 2003-2005*
Quarterly basis
Q1'03
CAS
In '000 CZK
UNIPETROL
a.s.
Equity
Q2'03
CAS
Q3'03
CAS
Q4'03
CAS
Q1'04
CAS
Q2'04
CAS
Q3'04
CAS
Q4'04
CAS
2004 CAS
2004 IFRS
Q1'05
CAS
H1'05
IFRS
Q3'05
IFRS
29,082,316 28,756,134 28,740,895 28,756,134
2 8 ,7 5 6 ,13 4 29,018,865 29,913,024 30,570,555 32,514,065
3 2 ,5 14 ,0 6 5
3 2 ,6 7 0 ,5 4 2
33,654,844
37,289,760
37,862,422
Total assets
70,412,185 70,902,528 70,287,537 70,902,528
7 0 ,9 0 2 ,5 2 8 69,637,123 72,601,266 71,583,677 70,774,874
7 0 ,7 7 4 ,8 7 4
7 1,8 9 4 ,3 8 7
70,610,037
78,318,284
73,469,730
Revenues
16,518,678 15,661,291 17,151,615 18,609,122
6 7 ,9 4 0 ,7 0 6 17,282,002 16,793,127 20,930,580 30,818,326
8 5 ,8 2 4 ,0 3 5
8 6 ,2 5 1,0 0 9
22,523,804
49,291,380
30,000,936
Value added
EBIT
EBITDA
Net result
2,363,633
2,213,284
1,399,267
2,087,882
8 ,0 6 4 ,0 6 6
2,754,320
3,194,973
819,360
445,496
-226,222
-304,538
7 3 4 ,0 9 6
938,181
1,267,456
1,853,527
1,450,263
782,206
716,204
4 ,8 0 2 ,2 0 0
1,970,246
2,279,296
467,674
259,642
-640,250
649
8 7 ,7 15
303,890
839,989
*by the end of 2004 the company did not prepared IFRS financial statements
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2003 CAS
3,376,339
4,670,947
1,271,591
2,594,573
2,421,527
5,132,580
668,634
1,871,238
13 ,9 9 6 ,5 7 9
6 ,0 7 1,8 0 1
11,8 0 3 ,6 4 9
3 ,6 8 3 ,7 5 1
3,609,705
5 ,8 7 8 ,3 11
1,528,797
2,823,903
1,026,831
11,6 2 4 ,3 7 1
2,491,275
5,166,051
1,787,436
3 ,6 9 5 ,4 2 4
1,107,625
1,759,607
552,955
Unipetrol Group – Financial Results for the period of 01.07-30.09.2005
Commentary to 3Q 2005 consolidated financial results of Unipetrol a.s.
Consolidated net profit of Unipetrol a.s. for the whole period of 9 months 2005 reached the level of 2 312.56 m CZK and was higher by
18.4% than 9 months 2004 figure. Main reasons for improvement of the results were: good market situation in Czech Republic, favorable
refinery prices and margins, temporal beneficial prices and margins for petrochemicals produced within the Unipetrol Group.
In 3Q 2005 Unipetrol a.s. generated consolidated net result of 552.95 m CZK, which was lower by 26.2% than in 3Q 2004. The lower result
was mainly caused by increased crude oil prices and planned installations’ modernization breaks at the end of this period.
During 9 months of 2005 the company achieved revenues from sales of 79 292.31 m CZK. The number, which was higher by 26.2% than
one reached during the same period of 2004, was the consequence of not only high products prices resulting from crude oil price increase
but also of higher quantity of refinery products sold. Crude oil processed in Unipetrol Group (100% Paramo Refinery and 51% Ceska
Rafinerska) reached the number of 3 330 ths tons and increased by 12.93% in comparison to 9 months of 2004.
Revenues from sales in 3Q 2005 at the level of 30 000.93 m CZK were better by 4.3% than in 3Q of last year, mainly as a effect of higher
quantity of products sold. Crude oil processed in 3Q 2005 in Unipetrol Group ended with 1 134 ths tons and was higher by 19.12% than 3Q
2004 number. There was an increase of yields of white products and fuels.
As far as non-fuel retail is concerned, there was an improvement in margins observed in 3Q 2005 in comparison to first half of 2005 when
the margins level remained very low.
Profit from operations after 9 months 2005 reached 3 850.73 m CZK level (15.0% increase vs 9 months 2004) and was gained mainly due
to higher volume of products sold. Profit before taxation of 3 009.14 m CZK (increase of 26.6%) and net profit of 2 312.56 m CZK (increase
of 18.4%) increased even more as a effect of lower cost of loans and bonds to loan swap resulting in lower financial burdens.
Net debt to net debt+equity ratio decreased from 33.3% at the end of 2Q 2005 to 29.2% at the end of 3Q 2005.
ROE for 9 months of 2005 presents the level of 8.1% p.a.
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Unipetrol Group – Financial Results for the period of 01.07-30.09.2005
Operating highlights of Unipetrol a.s. Capital Group 2003-2005
Quarterly basis
Operating data*
Total sales (tt) , of w hich
- light product sales (tt) 1
- other refinery products sales (tt)
- pet-chem sales (tt)
- other product sales (tt)
Retail sales of m otor fuels (tL) 2
Processed crude (tt)
Utilisation
3
White product yield
Fuel yield
5
4
Q1'03 Q2'03 Q3'03 Q4'03 2003 Q1'04 Q2'04 Q3'04 Q4'04 2004 Q1'05 Q2'05 Q3'05
110
177
720 1,135 2,142 1,024 1,195 1,204 1,269 4,692 1,118 1,326 1,400
45
69
429
728 1,269
654
770
784
830 3,039
746
848
919
52
83
156
128
420
100
132
190
130
552
123
192
197
14
25
114
231
383
221
243
189
253
905
209
236
235
0
0
21
48
69
49
50
41
56
196
41
51
50
110
130
137
129
507
107
130
133
120
491
104
126
136
131
143
671
978 1,922
834
898
69%
69%
67%
71%
45%
65%
68%
34%
48%
59%
952 1,034 3,718
874 1,022 1,134
70%
62%
65%
68%
75%
67%
64%
74%
81%
71%
68%
72%
67%
74%
70%
71%
72%
69%
72%
60%
57%
46%
56%
57%
55%
54%
56%
60%
61%
*Refers to Unipetrol Group
1) Gasoline, Diesel, LHO, Jet
2) Gasoline, Diesel, LPG
3) 51% of Ceska Rafinerska, 100% of Paramo
4) Gasoline, Diesel, LHO, Jet
5) Gasoline, Diesel, LPG, LHO
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Unipetrol Group – Financial Results for the period of 01.07-30.09.2005
Refining activity:
Crude oil processed in UniRaf in 3Q 2005 was higher by 26% in comparison with 3Q 2004 figures.
Refinery margins in 3Q 2005 were higher than in previous year, 3Q2005 NRU=9.98 USD/bbl and 3Q2004 NRU=6.14 USD/bbl.
In terms of volume UniRaf sold 32% more fuels in 3Q 2005 than year ago, in terms of value the change was even higher, by 41%.
There was a revaluation of crude oil in IKL pipeline made with the effect of 150 m CZK due to crude oil price increase.
Negative influence of exchange rates significantly decreased UniRaf net result in 3Q 2005.
No positive correlation of crude oil price increase and lubs and bitumen prices – significantly lower margins achieved by Paramo
Retail activity:
In 3Q 2005, a trend of purchase and sale prices increase continues. In 9 months of 2005 purchase price of fuel increased by 24.5%, sale
price increased by 27%.
Benzina commenced incorporation of Benzina Trade in 3Q 2005. Restructuring plan of Benzina operations started – operational and
administrative cost cutting program and introduction of ORLEN standards of filling stations operations launched.
Petrochemical activity:
Raw material (crude oil and naphtha) prices increased in 3Q 2005 due to non-market tensions – hurricanes, terrorists attacks, instability in
crude oil producing countries.
Sharp increase of prices and demand for monomers and plastics due to low supply from main world producers (production problems).
In 3Q 2005 ammonia price increased as a result of natural gas price increase and higher demand for the product in USA.
Modernization of Kaucuk installations in September resulted in shortage of some products.
Modernizations of installations in Kaucuk’s competitors factories caused lower supply and resulted in price increase for company
production. Higher demand for the company’s construction products noted.
Opposite to the above there was lower demand for synthetic rubber observed from car producers due to high level of their inventories.
Company also suffered low margins on polystyrenes as a result of high competition on the market.
Chemical activity:
Increase of demand and prices for Spolana products noted in second part of 3Q 2005.
Modernization of Spolana installations in September limited the possibility for better company’s results despite good market demand.
Unfavorable EUR/USD exchange rate for Spolana and high prices of ethylene (main company’s raw material) negatively influenced the
company results.
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