Date of publication: 15.11.23
Unimot has just released estimates of consolidated financial results for the third quarter of 2023. Based upon preliminary data, total revenue for the period in question was PLN 3,360 million, while 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) totalled PLN 25.4 million.
The Group’s financial results in the same period last year were as follows: PLN 120.7 million consolidated adjusted EBITDA and PLN 3,814 million total revenue.
The Unimot Group’s financial results obtained in the third quarter of 2023 was particularly affected by the situation on the domestic fuel market, especially diesel. Domestic diesel prices have been significantly below global levels for this product since the second half of August, and they do not correspond with worldwide prices. As a consequence, the business of trading imported diesel and selling it on the domestic market has been limited. Thus, in the third quarter of 2023, the Unimot Group concentrated on meeting the fuel demand in the Ukrainian market, completing the Group’s current obligations to domestic counterparties for the supply of diesel, and providing diesel to the AVIA petrol station chain in compliance with the contracts. The Management Board conducted an analysis of the effects of the adverse market conditions referred to above on the Group’s performance. The analysis considered, among others, the impact on the Unimot Group’s contractual obligations, which could not be fulfilled using the product purchased in Poland due to limited supply and required the use of imported diesel fuel. The Management Board estimated that the Group lost profits of PLN 72.4 million due to the aforementioned circumstances, which would not have happened if the market environment in Q3 2023 had not differed significantly from the diesel trading conditions in place in earlier periods.
Our third-quarter results in the fuel segment were significantly lower due to the exceptionally unfavourable market environment. It was challenging to predict these conditions on such a large scale. Since the Group has always been able to quickly adjust to changing conditions, we have limited imports and focused on the profitable aspects of this business, which include exporting the product and managing domestic contracts based on Platts quotations, which make up roughly 20% of our volume sold in Poland. I hope that things will get back to normal as soon as possible and that we can resume our operations in the same market environment as before. At the same time, we are pleased that our company is already profitable and diversified in its other primary business lines. It should be noted that the positive impact of all the assets acquired in the third quarter of 2023 will amount to approximately PLN 49.2 million” says Adam Sikorski, President of the Management Board of Unimot S.A.
The assets acquired by the Unimot Group in 2023 are as follows: Olavion, Unimot Commodities, Unimot Terminals, Unimot Infrastruktura, Unimot Bitumen, RCEkoenergia and Unimot Aviation.
With regard to the operating results produced by the Unimot Group in the segments that made up the main revenue stream for the Unimot Group by 2022, preliminary estimates indicate that the Group produced sales volumes of diesel, gasoline, and biofuels of 481.6 thousand m3 (a 9% year-over-year decline) and increased sales of LPG by 7% year-over-year to 68.7 thousand tonnes.
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