Stock Market: Unimot (WSE: UNT) Publishes Its 2Q22 Results

Stock Market: Unimot (WSE: UNT) Publishes Its 2Q22 Results

This report is prepared for the Warsaw Stock Exchange SA within the framework of the Analytical Coverage Support Program 3.0.

488/2022/AR

Stock Market: Unimot (WSE: UNT) Publishes Its 2Q22 Results - 1

Event: 2Q22 results revealed; Adjusted EBITDA close to the preliminary figures published earlier.

The Company revealed its quarterly consolidated 2Q22 results on Wednesday late after the session.

Consolidated figures. The Company’s reported EBITDA amounted to PLN 68.1 million. This figure is impacted by one-time effects at a sum of PLN -6.6 million in addition to other operating income at a value of PLN +4.5 million. The mentioned one-offs of PLN -6.6 million include (i) PLN -2.2 million of timing effects in the ON+Bio segment, (ii) PLN -3.5 million of cost transfers in the natural gas segment and (iii) PLN -0.9 million of other one-offs. Other operating income include PLN 5.39 million of accounting gains on the sale of subsidiaries. Ultimately, the Company’s adjusted EBITDA (as calculated by us) after excluding these items amounted to PLN 70.2 million vs. PLN 65.0 million expected by us initially (and vs. PLN 64.1 million indicated in the preliminary figures previously and PLN 74.3 million of final adjusted EBITDA calculated by management for the quarter). The difference in our adjusted EBITDA and the management adjusted EBITDA lies in other operating income (which in this case include the one-time gains on asset sales). The Company’s reported net income amounted to PLN 45.0 million, while the adjusted net income, as calculated by us amounted to PLN 49.7 million.

Results of segment. The Company’s ON/bio segment delivered adjusted EBITDA of PLN 59.1 million vs. PLN 49.6 million expected by us. The Company’s LPG segment recorded adjusted EBITDA of PLN 24.2 million vs. PLN 17.0 million expected by us. The natural gas segment’s adjusted EBITDA amounted to PLN 6.1 million vs. PLN 5.0 million expected by us. The electric energy segment delivered an adjusted EBITDA of PLN 1.8 million vs. PLN 0.0 million expected by us. The results of the photovoltaic segment with adjusted EBITDA at PLN -1.2 million (vs. PLN +1.5 million expected by us).

The Company mentioned that the quarterly results had been particularly impacted by the war in Ukraine, and by the resultant instability of energy markets caused by introduction of sanctions on Belarus and Russia. The Company also mentions very high sale volumes generated on diesel, bio and LPG products.

Cash flow. The Company’s 2Q22 operating cash flow amounted to PLN 29.3 million vs PLN -32.3 million recognised a year ago. The cumulative operating cash flow for 1-2Q22 amounts to as much as PLN 80.7 million (vs. PLN 65 million delivered a year ago).

Net debt. The Company’s net debt at the end of the quarter amounted to PLN 245 million vs. PLN 224 million recognised a year ago.

Stock Market: Unimot (WSE: UNT) Publishes Its 2Q22 Results - 2

Stock Market: Unimot (WSE: UNT) Publishes Its 2Q22 Results - 3

Expected impact: Positive. Not only because the results are slightly stronger than our expectations (and the preliminary figures) but also because of the good operating cash flow and the drop in net debt. The earnings outlook for 2H22 remains very good and we expect the finalization of the purchase of Lotos and Orlen bitumen and logistics assets, which may be a big chance for further growth for the Company. In our view, the risk of SPO is lower than previously given the relatively good balance sheet.

GPW’s Analytical Coverage Support Programme 3.0

GPW’s Analytical Coverage Support Programme 3.0

The Warsaw Stock Exchange's (GPW's) Analytical Coverage Support Programme 3.0 supports investment firms in drafting analytical reports which are financed by GPW. The objective of the Programme is to improve the availability of research covering less liquid companies, facilitating investors' informed investment decisions based on a reliable independent source of issuer information. Eligible to participate in the Programme are companies listed on the GPW Main Market (other than WIG20 participants) and on NewConnect. The Programme covers up to 50 issuers.

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