28 May 2012 12:17 [Source: ICIS news]
LONDON (ICIS)--Unipetrol has indefinitely halted crude oil refining at its Paramo unit because of weak demand, the Czech-based oil and petrochemical group said on Monday.
In March, when Unipetrol revised its 2011 net loss to koruna (Kc) 5.91bn ($291.6m, €232.2m) from the initially released figure of Kc2.81bn, the group noted that loss-making Paramo, also a bitumen and lubricants unit, had been hit by a revised one-off impairment charge - which had increased to Kc1.72bn from Kc1.28bn.
Unipetrol is working on a possible restructuring of Paramo which may include permanently closing its crude refining operations, it said.
The company has this year also been under pressure from petrochemical margins caused by all-time high naphtha feedstock prices.
However, in April, while announcing a first-quarter petrochemical operating loss of Kc236m, Unipetrol said the lows of its combined model petrochemical margin seemed to be bottoming out.
Unipetrol is 63% owned by
($1 = €0.80, $1 = Kc20.27, €1 = Kc25.45)
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