Unipetrol Reports Quarterly Loss on Impairments, Sales

Unipetrol AS, the largest Czech refiner, said it incurred a loss in the fourth quarter on impairment charges and lower sales of gasoline.

Net loss in the three months through December reached 3.1 billion koruna ($161 million), half the 6.2 billion-koruna loss reported a year earlier, the Prague-based company said in a statement on its website today. In the third quarter, Unipetrol reported a 645 million-koruna profit.

Unipetrol wrote off 4.37 billion koruna in impairments on fixed assets in the refinery segment, bringing earnings before interest and tax down to a 4.47 billion-koruna loss. Revenue in the quarter fell 8 percent to 26.3 billion koruna as demand for both refinery products and gasoline fell.

“The retail segment was negatively affected by lower sales volumes, mainly in gasoline, partly caused by fuel imports within the grey economy,” Piotr Wielowieyski, vice chairman of the board, said in the statement.

PKN Orlen SA, which controls 63 percent of Unipetrol, said today it incurred a fourth-quarter loss of 276.5 million zloty ($88.3 million).