LETTER OF THE PRESIDENT OF THE MANAGEMENT BOARD
Dear Sirs, Dear Shareholders,
I am handing over to you the statements of the UNIMOT Group for the first half of 2022, in which we present the financial and operational results, as well as the key events of the period.
On 24 February 2022, Russia’s armed invasion of independent Ukraine began, causing a sudden global economic upheaval and affecting – on a global scale – trade, investment, commodity markets and logistics. The war has led to limitation of economic recovery and contributed to a decline in the confidence of customers and investors in market players. The UNIMOT Group is continuously monitoring developments and events in Ukraine in order to react quickly and adapt its commercial strategy to market conditions in the best possible way, fully respecting the sanctions imposed locally and internationally.
We are prepared for the various scenarios that arise in the fuel market or that may occur in the future. Our financial results achieved in H1 2022 proved that the mechanisms implemented after the outbreak, the business solutions, as well as the new business contacts established, were not only an effective protection against declining profitability, but also ensured that the Group maintained its growth trajectory.
One of the key activities we carried out during the analysed period was the lease of three tanks at the Gulfhavn terminal in Denmark with a total capacity of 127,000 m3. This is a deep-water terminal that allows the unloading of diesel from the largest tankers arriving in Europe from directions other than Russia and the onward transportation of fuel to Poland and, if necessary, to all other ports in the Baltic Sea. Thanks to it, we have so far made three deliveries of diesel – two from Saudi Arabia and one from India. The terminal lease agreement was concluded for one year with the possibility of extension, and the use of the tanks has made the fuel supply sources much more flexible and diversified.
We assume that the leased terminal will also be used by a subsidiary established in Geneva. Its activities will focus on servicing the international fuel trade and making the most of trading opportunities in the market.
In the first half of 2022, we consistently implemented a project aimed at preparing the UNIMOT Group to act as an independent logistics operator. The Group will become one once the acquisition of Lotos Terminals is finalised.
After the reporting period, on 1 August 2022, UNIMOT’s fuel trading activities, excluding fuel trading within the AVIA petrol station chain and natural gas (the so-called organised part of the enterprise) were transferred to UNIMOT Paliwa. The value of the contributed assets amounted to PLN 325.9 million. Following this operation, UNIMOT will focus its activities mainly on management functions for all Group companies.
The implementation of the activities described above was a key stage in the process, announced in January 2022, of acquiring 100 per cent of the shares of Lotos Terminals. As mentioned earlier, once the transaction is finalised, the UNIMOT Group will become an independent logistics operator with 9 fuel terminals with a total capacity of 350,000 m3. In addition, our assets will be enlarged by asphalt plants in Jasło and Czechowice-Dziedzice. The acquisition of Lotos Terminals means a giant leap in the scale of our operations and will allow the UNIMOT Group to rank third on the fuel storage market and second on the bitumen sales market. Thanks to the acquisition of the assets, we will be able to move closer to the realisation of one of the strategic objectives to be achieved by 2023, which is the diversification of revenue sources.
Another example of the successive development and strengthening of the UNIMOT Group is the consistent building of an everincreasing coverage of the AVIA station chain. In the first six months of 2022, we connected 17 stations to the chain and currently have 102 stations. An additional element increasing the attractiveness of petrol stations for customers is the Eat&Go concept being developed. In addition, we are launching SPAR supermarkets at AVIA stations, which are open 365 days a year. Currently, there are already 15 SPAR facilities operating at our stations.
In H1 2022, we achieved exceptionally good financial and operational performance, which, in light of the challenges mainly related to the induced by Russia armed conflict in Ukraine, required a fast and flexible approach to any emerging market opportunity. The Company operated in an environment of unprecedented fluctuations in fuel prices, increased demand, growing logistical problems and extended sanctions on Russia and Belarus in subject and object grasp.
The above-mentioned factors influenced the consolidated total revenues achieved in H1 2022, which amounted to PLN 5 889 million, 78 per cent higher than in the same period of the previous year. Adjusted EBITDA, on the other hand, reached the level of PLN 159 million, compared to PLN 45 million achieved a year earlier. The increases in these financial items were driven by the good sales results achieved. Diesel and bio-fuel sales volumes increased by almost 15 per cent year-on-year to 855,000 cubic metres and LPG by less than 5 per cent to 118,000 tonnes.
Despite the numerous challenges we will have to face, I am convinced that the consistent implementation of the set objectives and the flexibility of our actions will strengthen our market position and positively influence the development prospects of the UNIMOT Group. I would like to thank all stakeholders, especially employees, members of the Supervisory Board, business partners and customers for their great commitment, trust and full professionalism. Thank you for building the value of the UNIMOT Group. Yours faithfully Adam Sikorski President of the Management Board of UNIMOT S.A.
Yours faithfully
Adam Sikorski
President of the Management Board of UNIMOT S.A.
