Unipetrol is to release its Q3-05 consolidated and unconsolidated IFRS results today. Driven by the refining and petrochemical segments, we expect the 9M05 consolidated figures of Unipetrol to show an improvement, on a y-o-y basis. We assume that the refining margins remained on a rising trend in QIII-05 and should have a positive impact on Unipetrol rafinerie and Paramo. Nevertheless, 9M results of the refining segment also reflect outages in both refineries (Paramo, Ceska rafinerska), which partially offsets the effect of rising margins. Benzina, a fuel retailer, operates on a low-margin wholesale market and fiercely competitive retail market. Despite cost savings, it strives to break-even and QIII is unlikely to bring a change in the negative trend (HI profitability was also hit by a CZK -248mn one-off revaluation of assets). The demand for olefins, polyolefins, and plastics eased somewhat in the second quarter, compared to QI, and the trend continued in QIII. This, together with the price development on the input markets, increases pressure on margins, but the downstream should still report a y-o-y performance improvement in 9M05.
PKN holds 63% in Unipetrol, will hold a conference call on its Q3-05 results today, at 16.30 CET. The dial-in number is +44 207 162 0025