Excellent operating results of the ONICO Group after three quarters


During nine months of 2018 the sales revenues of the ONICO Group grew by 14%, up to PLN 2.3 bn, compared to PLN 2.01 bn in the previous year. The operating profit of the Group grew even more; in this period the operating profit totalled PLN 22.6m and was 36% higher than in the corresponding period of 2017 (PLN 16.6m).

In terms of sales revenues, the first three quarters of 2018 were record-breaking quarters in the history of the Company, even better than 2016 which had been the best year in history with PLN 2.21 bn after nine months. This year’s profit is 4% higher.

 Just like revenues, operating costs grew by 14% and totalled PLN 2.27 bn. The highest increase, by 45%, was recorded for taxes and other fees, which totalled PLN 527.5m compared to PLN 361.8m in the previous year.

EBITDA was PLN 24.3m, and at the net level the ONICO Group earned a profit of PLN 5.4m, which is mainly the result of high financial costs, which after three quarter were 50% higher than in the previous year.

In the same Q3, revenues of the Group were only lower than the revenues recorded in the last two quarters of the record-breaking year 2016, which means that in this aspect Q3 was the third best quarter in the Company’s history to date.

The main goal defined for the Group by the Management Board for the months to come is to improve margins in various segments of sales. It should be noted that the per cent drop of the net margin follows the change in the volume structure (an increase in the sales of products with excise paid) and the considerable growth in the purchase prices of petroleum products in 2018.

Despite this and taking into account redemption of bonds due in Q3 2018, the ONICO Group was able to record a positive result on cash flows after three quarters.

The Management Board of the Company assures that the ONICO Group is actively seeking development opportunities by expanding the scope of offered products and through expansion in international markets.

Broken down to operating segments, the ONICO Group increased its market share in the wholesale of LPG, and again increased the amount of gas imported through the marine terminal in Gdynia. In the fuel wholesale segment, ONICO recorded a considerable growth in sales by more than 40% compared to the first three quarters of 2017.

In addition, ONICO ENERGIA consistently builds its position in the market of sales of natural gas to end customers in Poland and continues to fulfil deliveries to the Ukrainian market; ONICO OIL consistently expands the customer portfolio by increasing the volume of oil sold, while the sales of bitumen products supplied to the Polish market from independent sources have been continuously growing.

ONICO S.A. continues to develop sales of liquid fuels and petroleum products in the European market. This is the core activity of the Company and the source of continuous profits. The sales are largely based on SPOT contracts and are made when prices in individual markets differ considerably.