Strategy for Unipetrol
"We expect Unipetrol's EBITDA to grow by EUR 138 million (some zł.540 million) by 2008. "There is great potential in the integration of PKN Orlen and Unipetrol and a chance to increase the value of the company," said Igor Chalupec, CEO of PKN Orlen.
In May last year, PKN Orlen bought 63 percent of Unipetrol as part of its drive to expand in Central Europe. According to Chalupec, gains made from synergies on PKN's side have already exceeded EUR 24 (zł.93.5) million this year.
PKN Orlen also presented a strategy for the further integration of Unipetrol, whose operations will now focus on: refining and wholesale, petrochemicals, chemicals and the development of a retail outlet network. Marek Mroczkowski, CEO of Unipetrol, also announced the company's intention to dispose of its non-core assets.
Plans to sell
Aliachem Synthesia, Aliachem Fatra, Lovochemie, Agrobohemie and Kaucuk are the entities PKN Orlen is planning to sell but the company's authorities refused to reveal the potential value of the transactions.
Expansion at a cost
In order to win the tender for the purchase of Unipetrol, PKN Orlen allegedly had to conclude very unfavorable contracts with Czech-based Agrofert for the sale of the best performing Unipetrol companies. In September this year the owner of Agrofert - Andrej Babisz, who is a close acquaintance of the former Czech Prime Minister - Stanislav Gross, revealed the agreement concerned shares in Agrobohemie, Aliachem, Kaucuk, Paramo and Chemopetrol. The overall value of those companies was estimated at EUR 103 (zł. 400) million.
Should PKN Orlen refuse to sell the promised assets, it would be expected to pay EUR 77.3 (zł.301.6) million in damages. In August this year, Chalupec announced PKN Orlen had created a zł.376 million reserve in order to cover the risk related to agreements concluded with Agrofert and ConocoPhilips.
The privatization of Unipetrol will be examined by a parliamentary investigative commission created in the Czech Republic on October 11. The transaction concluded by PKN Orlen is also being looked into by the office of the prosecutor in Kraków.
