The Czech Press Agency reports that the Ministry of Finance wants the names of short-listed privatization investors to be released today.
Also, Unipetrol’s main subsidiaries released their 9M CAS results yesterday. Overall performance was strongly negative, mostly due to Ceska rafinerska’s (51% owned by Unipetrol) results, Chemopetrol did not help, either.
Ceska rafinerska’s Q3 2001 gross profit reached CZK 569 mil. (sales of CZK 35.2 bil.), which is a reflection of a dismal Q3 2001 performance. Negative margin development, stock revaluation, and expenses related to new production lines activation were the main reasons why the company significantly underperformed expectations.
Chemopetrol’s gross profit CZK 367 mil. (sales CZK 17.5 bil.) was disappointing. High input prices, weak output prices, and greater other operating costs more than offset the positive effect of high-capacity utilization and overhead cost cutting in the company.
Kaucuk was in line with our expectations (gross profit of CZK 169 mil., sales CZK 6 bil.), but the company was also affected by weakening margins.
Benzina slightly outperformed our expectations (gross profit of CZK 45 mil., sales CZK 10.7 bil.); the profitability reflects a positive seasonal impact.
Paramo exceeded our expectations; gross profit amounted to CZK 142 mil. (sales CZK 4.3 bil.), with the company’s restructuring and cost cutting being the main reason for the good performance.
We do not expect Unipetrol’s full-year performance to divert significantly from the trend set over 9M 2001; we reiterate our hold recommendation.
(Jiri Soustruznik)