Czech Unipetrol to report sharp second-quarter losses - bank

24 July 2012 16:25  [Source: ICIS news]

LONDON (ICIS)--Czech petrochemical producer Unipetrol is set to report sharp losses in its second-quarter results, an investment bank said on Wednesday.

Sizeable inventory holding losses would push Unipetrol to a second-quarter net loss of koruna (Kc) 492m ($23.3m, €19.2m), compared with a net loss of Kc1m which the company reported for the same three-month period of 2011, forecast WOOD & Company.

“We believe such results should come as a disappointment, as both the refining and the petchems macro were very supportive in 2Q12, with refinery margins that we have not seen since 2008. Unipetrol has been unable to benefit from these trends,” an analyst at the bank, Robert Rethy, said in a note to investors.

On 19 July, Unipetrol conceded in a trading statement that it would register an operating loss for the second quarter, adding that second-quarter petrochemical sales volumes stood at 411,000 tonnes, 8% less than in the same quarter of 2011 and a 7% decrease from the first quarter of this year.

The company also disclosed that it was pressured by a second-quarter model polyolefin margin of €217/tonne, down 25% year on year and a 10% fall quarter on quarter.

Unipetrol, as well as Poland-based PKN Orlen, which is the majority-owner of Unipetrol, will report their second-quarter results on 26 July.

($1 = Kc21.08, €1 = Kc25.56)

By: Will Conroy
+44 20 8652 3214

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