Unipetrol would have to reduce the ethylene production to 70% until November 4 due to a technical fault, which occurred on Monday. Nevertheless, Chemopetrol, spokesman, Pavel Vesely, the production reduction should not have any major impact on Chemopetrol’s customers.
Our view:
Given the relatively short period of ethylene production reduction, we do not expect it to have any significant implications for Unipetrol’s financials and therefore see the news as neutral.