UNIMOT concludes strategic contracts connected with obligatory fuel stocks

Date of publication: 03.03.16

An independent fuel importer – UNIMOT S.A. has concluded strategic contracts with Operator Logistyczny Paliw Płynnych (OLPP company) and three banks ING Bank Śląski, ING Bank N.V. and mBank, which allow the company to maintain obligatory fuel stocks on its own.

The contracts that have been signed allow the UNIMOT company to comply with the regulations imposed by the Law on Obligatory Stocks of crude oil, petroleum products and natural gas and conduct of behaviour in the situation when country’s fuel security is in danger. Suppliers of Diesel oil will be biggest international companies, which trade fuels – Glencore and Vitol.

– Several factors influnced conclusion of contracts – explains Mr Robert Brzozowski, the President of UNIMOT S.A. – first of all the dynamic development and the position on the market of UNIMOT as the biggest independent liquid fuels importer. An important thing is also a favourable structure of financial markets as well as our competences in using appropriate security measures. Concluding the contract was a complex issue, it required negotiations with several financial entities including ING Bank Śląski, ING Bank N.V. and mBank. Making this decision made it possible to optimize substantially costs connected with complying with the requirements of the law on obligatory stocks, which will have a direct reflection in measurable savings for our Company.

In order to minimize the risk connected with the market price of Diesel fuel. The Company has concluded appropriate securing transactions. Maintaing the obligatory stocks of Diesel oil will be secured for UNIMOT by Operator Logistyczny Paliw Płynnych – the biggest Polish entity specializing in storing and reloading of fuels.

– As a Company with an experience of many years in the fuel trade we carefully observe the situation on the market and try to make best business decisions, which is confirmed by, among others the dynamic growth of incomes achieved in this sector of activity. In the future we also do not exclude other transactions of this kind in order to optimize costs. However, this will depend on the situation on the market – adds Mr Robert Brzozowski.