Czech firm Unipetrol Q2 net profits in petrochemicals softens due to rising naphtha costs and rising currency v/s Euro

26-Aug-08

Czech Republic's Unipetrol Group reported a net profit of CZK 708 mln (US$42.4 mln) for the H1 of 2008 and CZK 302 mln (US$18.1 mln) for the Q2 of 2008. Like Q1, UNIPETROL again felt the pinch from factors like high crude oil prices, very low petrochemical margins, and rising Czech currency in Q2. The net profit declined significantly in the Q2 compared to the same in the corresponding period in 2007. Profitability of the petrochemical segment, which was the main driver of UNIPETROL's good financial results in H1 of 2007 was impacted by the unfavourable macroeconomic trends in this year's H1. The mounting prices of virgin naphtha and strengthening Czech currency against Euro ate up the majority of petrochemical margins.