23 July, 2018
Several European producers have started to announce their financial results for the second quarter of 2018 with mixed performances in the midst of rising crude oil prices and negative currency effects.
Ineos reported that its earnings before interest, taxes, depreciation and amortization (EBITDA) for the second quarter of 2018 were at €683 million ($797 million) compared to €618 million ($721 million) for the first quarter. On a yearly basis, it increased by €45 million ($52 million).
The company also reported good market conditions in Europe as well as solid business in North American markets while markets in Asia also gained some strength over the quarter.
The major Polish oil refiner and petrol retailer PKN Orlen posted record-high earnings from retail operations for the second quarter at PLN677 million ($183 million), which indicates an increase of 18% on a yearly basis. The company’s downstream segment’s EBITDA was close to PLN1.6 billion ($432 million), supported by a slight 1% year on year rise in sales volumes.
The company stated that the positive volume effect in its downstream segment was offset by adverse external impacts amid increased energy costs and tighter petrochemical products margins.
Unipetrol, the Czech Republic’s largest refining and petrochemical company, took a revenue of CZK31.1 billion ($1.4 billion) in the first six months of 2018, down by CZK44 million ($1.9 million) from a year ago. The company’s EBITDA was down more significantly by CZK4.2 billion ($189 million) at CZK 2.3 billion ($104 million) while its net profit showed a yearly decrease of CZK 687 million ($31 million) at CZK 2.9 billion ($131 million).
The Czech producer attributed its overall weaker financial results to the unfavorable macroeconomic environment, including the sharp rise in oil prices and lower refinery and petrochemical margins.
Similarly, the Dutch producer AkzoNobel’s net income dropped by 10% on a yearly basis to €271 million ($316 million) while its revenues fell by 3% year on year to €2.45 billion ($3 billion) in the second quarter. The company’s operating income was also down by 27% to €192 million ($224 million).