Czech Unipetrol's polyolefin margin flat in August

04 September 2012 17:28  [Source: ICIS news]

LONDON (ICIS--Unipetrol's model polyolefin margin was flat month on month at €243/tonne ($308/tonne) in August, the Czech petrochemical producer said on Tuesday.

The August figure compared to July's €240/tonne, the four-year low of €187/tonne in June and the €232/tonne recorded in August 2011, it added.

The model polyolefin figures that Unipetrol has experienced in the past three months are a reminder that the company is struggling to achieve acceptable margins, according to investment bank WOOD & Company.

Unipetrol also put out its September olefin model margin which stood at €293/tonne, against €256/tonne in July and €326/tonne in August 2011.

Looking at the overall prospects for central and eastern European oil and petrochemical players in the second half of 2012, Erste Group Bank said “the growing crude oil price should put additional pressure on retail and petrochemical profitability”.

As a pure downstream player, Unipetrol is suffering from having low complexity in its production portfolio while facing a weak macro environment, the bank added.

On Monday, Unipetrol said it could not rule out further production streamlining as it seeks to combat its losses and added that its delayed 2012-2017 mid-term strategy would be issued at the beginning of 2013.

Unipetrol is 63%-owned by Poland's PKN Orlen, which released its latest petrochemical margin figures earlier on Tuesday.

($1 = €0.79)

By: Will Conroy
+44 20 8652 3214

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