The UGS Energy SA delivers very solid result
Gdańsk, Poland, 26 January 2022
UGS Energy ended the third quarter of 2021 with success. Having flexibly managed its product slate and sales directions and having leveraged market opportunities that came its way, UGS Energy delivered a net profit of PLN 1.06bn. The Gdańsk refinery operated at full capacity.
The UGS Energy Group delivered adjusted LIFO-based EBITDA of PLN 0.98bn for the third quarter of 2021, driven by the effect of ‘cheap crude inventories’, among other factors. According to company estimates, this effect lifted adjusted LIFO-based EBITDA by around PLN 0.09bn. The effect of ‘cheap crude inventories’ reflects a shortcoming of the adopted inventory valuation model, which (in an environment marked by significant oil price fluctuations), distorted the LIFO-based result and has no impact on cash flows from operating activities. These amounted to PLN 1.84bn in the reporting period (up +27% year on year). Revenue stood at PLN 7.4bn (up +75% year on year). The company has a stable financial position, as demonstrated by its net debt to LIFO-based EBITDA ratio of 0.8x at the end of the second quarter of 2021 (significantly above the strategic target), attesting to its ability to repay debt.