26 January 2012 10:17 [Source: ICIS news]
LONDON (ICIS)--PKN Orlen’s earnings before interest and taxes (EBIT) sank to around zlotych (Zl) 100m ($30.7m, €23.5m) in the fourth quarter of last year from Zl746.8m in 2010, the Polish oil, chemicals and petrochemicals group said in a preliminary trading statement on Thursday.
The steep 86.6% fall was attributed by Orlen to factors including asset impairment losses at its Czech petrochemical producer Unipetrol and other subsidiaries, as well as pressure on sales volumes in a difficult economic environment.
“Petchem sales volumes in the fourth quarter grew by only 3% year on year [to 1.24m tonnes] despite the new purified terephthalic acid [PTA]/paraxylene [PX] operations, and were surprisingly weak quarter on quarter (-9%), due primarily to lower fertiliser sales and lower polymer sales at Unipetrol,” investment bank Wood & Company said in an analysis of the trading statement.
Orlen’s model petrochemical margin fell to €609/tonne ($801.3/tonne) in the fourth quarter – down 8% quarter on quarter and 9% year on year – Orlen added.
Orlen and Unipetrol are to publish their consolidated fourth-quarter results on 9 February.
($1 = €0.76, $1 = Zl3.26, €1 = Zl4.26)
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