Record profits ease the Unipetrol
PKN Orlen has achieved one of the best net profit results in the group's history. The company's profit in the second quarter of this year was zł.698 million, which is nine percent more than a year ago. The return on average capital employed was 14.4 percent and EBIDTA was zł.921 million.
The president of the management board, Igor Chalupec, pointed to the high price of oil as the crucial macroeconomic factor that influenced the company's financial situation. The price of oil in Q2 of 2005 grew by 46 percent as compared to Q2 in 2004.
It's not all good news for the firm, though, and controversy is rarely far from the oil giant. Last year it won a tender for the privatization of Czech petrochemical holding Unipetrol. According to Rzeczpospolita, Orlen previously signed an agreement to sell 40 percent of shares in Unipetrol at a very cheap price to Agrofert, which is owned by influential Slovak businessman Andrej Babisz. PKN Orlen allegedly lost almost zł.800 million on this transaction. Critics claim that this deal was to cover a bribe for Czech politicians to agree on the sale of Unipetrol.
Five of Unipetrol's highly profitable chemical plants, which Orlen is loath to lose, were also to be sold to Agrofert. No resolution over the disputed chemical plants has yet been reached.
Now PKN Orlen's management is examining all the possible consequences of the agreement on purchasing Unipetrol. The firm is negotiating with the parties in the conflict and trying to persuade Unipetrol to change the agreement. Otherwise, Orlen will have to pay damages to Unipetrol. "I cannot reveal the details of our proceedings due to the confidentiality agreement with our partners. Any word we utter can be used against us," said Chalupec. He blames the previous management board, chaired by Zbigniew Wróbel, for the current mess.
The president of the management board, Igor Chalupec, pointed to the high price of oil as the crucial macroeconomic factor that influenced the company's financial situation. The price of oil in Q2 of 2005 grew by 46 percent as compared to Q2 in 2004.
It's not all good news for the firm, though, and controversy is rarely far from the oil giant. Last year it won a tender for the privatization of Czech petrochemical holding Unipetrol. According to Rzeczpospolita, Orlen previously signed an agreement to sell 40 percent of shares in Unipetrol at a very cheap price to Agrofert, which is owned by influential Slovak businessman Andrej Babisz. PKN Orlen allegedly lost almost zł.800 million on this transaction. Critics claim that this deal was to cover a bribe for Czech politicians to agree on the sale of Unipetrol.
Five of Unipetrol's highly profitable chemical plants, which Orlen is loath to lose, were also to be sold to Agrofert. No resolution over the disputed chemical plants has yet been reached.
Now PKN Orlen's management is examining all the possible consequences of the agreement on purchasing Unipetrol. The firm is negotiating with the parties in the conflict and trying to persuade Unipetrol to change the agreement. Otherwise, Orlen will have to pay damages to Unipetrol. "I cannot reveal the details of our proceedings due to the confidentiality agreement with our partners. Any word we utter can be used against us," said Chalupec. He blames the previous management board, chaired by Zbigniew Wróbel, for the current mess.
