Estimated financial results of Unimot S.A. for the fourth quarter of 2023

Date of publication: 12.02.24

Unimot has published estimates of consolidated financial results for the fourth quarter of 2023. According to preliminary data, consolidated adjusted EBITDA (which accounts for the estimated valuation of compulsory emergency liquid and gaseous fuel stocks, justified cost and revenue reallocations, and non-recurring events) amounted to PLN 41 million in this period, and total revenue amounted to PLN 2,170.4 million.

The Group’s financial results in the same period last year were as follows: PLN 233.9 million consolidated adjusted EBITDA and PLN 3.682 million total revenue.

The Unimot Group’s financial results obtained in the fourth quarter of 2023 were particularly affected by the prevailing situation on the diesel fuel market. For most of the last quarter of 2023, domestic diesel fuel prices were below global prices for this product. The consequence of this was a limitation of diesel fuel trading on the Polish market. During this period, the Group focused on fuel exports to Ukraine, fulfilling previously contracted obligations to domestic counterparts for the supply of diesel, and providing diesel to the AVIA petrol station chain in compliance with the contracts. The Management Board of the Unimot Group conducted an analysis of the impact of the above adverse market conditions on the Group’s financial situation, from which it follows that the Group incurred losses amounting to PLN 72 million, which would not have occurred if the market environment in the fourth quarter of 2023 had not significantly deviated from typical conditions for diesel fuel trading.

The positive contribution to the result stemmed from assets acquired in 2023, including Olavion, Unimot Commodities, Unimot Terminale, Unimot Infrastruktura, Unimot Bitumen, RCEkoenergia, and Unimot Aviation. They generated an adjusted EBITDA result of 54 million PLN in the fourth quarter of 2023.

“The fourth quarter of 2023 was another period of challenges related to the market environment, but also of effective utilization of opportunities. This wouldn’t have been possible without previously made strategic and operational business decisions. The positive effects across the entire Unimot Group are primarily visible in business diversification. All acquisitions made in 2023 generated approximately PLN 54 million in adjusted EBITDA and this is a result that we are pleased with. Moreover, thanks to the consistent implementation of our sales policy, we achieved an EBITDA of 25.5 million PLN in the natural gas segment. On the other hand, the results of the UNIMOT Group were under pressure from domestic diesel prices, which resulted in the lack of profitability of importing this product. Similar to the third quarter, we focused on those business areas that were profitable, namely export and service of domestic contracts based on Platts quotations. I hope that in 2024 the market situation will return to its standard and we will be able to conduct our import activities profitably,” says Adam Sikorski, the President of the Management Board of Unimot S.A.

Regarding the operational results achieved in the fourth quarter of 2023 by the Unimot Group in segments that were the main sources of revenue for the Group until 2022, preliminary estimates indicate that the Group produced sales volumes of diesel, gasoline, and biofuels of 441.6 thousand m3 (a 1% year-on-year increase), and increased the sales of LPG by 17% year-on-year to 74 thousand tonnes.