Unimot fuels counts on improving performance in liquid fuels segment

"The result of the first half of the year sets us up positively for the second half of the year. (...) We are satisfied with the first half of the year," Sikorski said.

"The second half of the year is going as expected, we cannot complain, but we are focusing hard at the fourth quarter and next year in the liquid fuels segment, which has been under pressure in the last 12 months. (...) The environment is now strongly in our favour, and I hope that this segment will return to a strong contribution to our result and our EBITDA," he added.

In the first half of the year, Unimot's adjusted EBITDA amounted to PLN 127.8 million (EUR 29.9 mln), compared to PLN 168 million (EUR 39.3 mln) in the prior year period.

In the second quarter alone, consolidated adjusted EBITDA (taking into account the estimated valuation of obligatory liquid and gaseous fuel stocks, cost and revenue deferrals and non-recurring events) amounted to PLN 80.4 million (EUR 18.8 mln), up from PLN 63.2 million (EUR 14.8 mln) in the prior year period.

As Unimot's CEO noted, low fuel demand in Europe is causing refining margins to fall sharply, putting pressure on local refiners. In his view, this should have an impact on raising onshore premiums.

Sikorski assessed that the weakening Chinese economy and the increase in refining capacity resulting in an oversupply of petroleum products could mean an improved environment for liquid fuel importers, with falling crude oil and petroleum product prices equating to lower financing costs and lower inventory holding costs.

In his view, fundamentally, oil prices should fall.

Unimot's hopes maintain pinned on the LPG area as sanctions on LPG from Russia take effect.

"Our terminal, logistics are prepared. We are ready for the sanctions package," CEO Sikorski said.

"There are logistical restrictions. We hope that there will be no disruption in supply, but that we will be able to make a good profit from it," he added.

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