In Q4 2018, under tight macroeconomic conditions, ONICO Group earned nearly PLN 1 million in net profit, an increase of almost 9% over the corresponding period in 2017. Overall, the 2018 sales revenue was very close to the all-time record high of 2016.
Consolidated sales revenue of ONICO Group reached PLN 754.9 million in Q4 2018, a slight decrease over the previous year (by over 5%), primarily due to drops in oil and petroleum product prices on global markets in the last quarter of the year. Nevertheless, the Company managed to improve its performance and pushed its net profit up to almost PLN 1 million, up by nearly 9% from Q4 2017.
Overall, ONICO Group achieved revenue of PLN 3.05 billion in 2018, an increase of 11% over the previous year and just 3% less than the standing record high of 2016, which was PLN 3.15 billion. As for sales, 2018 proved to be the second best year in the Company’s history.
Despite having to face tight conditions in a highly competitive market and strong price pressures from the major players, ONICO Group managed to earn only just slightly lower operating profit year-on-year for the whole 2018, at PLN 23.55 million (previously: PLN 24.47 million). The Group’s EBITDA was PLN 25.9 million and, in net terms, the cumulative profit for four quarters of last year exceeded PLN 7 million.
The Company’s Management Board sees that the main goal of the Group for the upcoming periods is to improve the margins in various sales segments. The most vital of these are sales of LPG and fuels, mainly diesel fuel.
For LPG wholesale, Q4 2018 saw ONICO very active in the area of transshipment terminals.
In early December last year, by administrative decision of the President of the Energy Regulatory Office, Onico Gas sp. z o.o., a subsidiary company, was granted an extended licence for the production, trading, storage and transshipment of liquefied petroleum gas (LPG) using the Railway Terminal infrastructure in Planta near Narewka (Podlaskie Province). This Terminal has become an essential part of the Company’s activities in the context of liquefied gas shipping from the East by rail. This investment will enable reduction of logistics costs, thereby limiting the reliance on third-party terminal services to ultimately deliver an improved trading margin.
And having received and handled deliveries from ten gas carriers with propane and propane/butane in Q4 last year only, the Marine Terminal in Gdynia continues to play a key role as well.
For fuel wholesale, ONICO Group recorded a strong sales increase in 2018, up by 25% from 2017.
ONICO also carries on its trading activities on the European market.