Poland’s PKN Orlen Q1 petchem profit falls 10% on lower margins

25 April 2012 09:13  [Source: ICIS news]

LONDON (ICIS)--PKN Orlen’s petrochemical operating profit fell to zlotych (Zl) 346m ($109m, €83m) in the first quarter of this year, compared with Zl 385m a year ago, as high costs of feedstock led to lower margins, the Polish group said on Wednesday.

Petrochemical sales revenues for the quarter increased 24.5% year on year to Zl 5.2bn, it added.

Petrochemical sales volumes, however, were at record high during the March quarter 2012 at 1.38bn tonnes, up 10% year on year, the company said.

The increase in sales volumes were mainly due to output from the company’s 600,000 tonne/year purified terephthalic acid (PTA) plant, which was launched last year, as well as higher polyolefin and fertilizer sales, Orlen said.

Orlen’s model petrochemical margin fell 18% year on year to €618/tonne in the first quarter of 2012.

However, as of 20 April, the company’s second-quarter margin stood at €754/tonne, it said.

Orlen, also a refiner, saw overall net profit rise 8.4% in the first quarter to Zl 1.2bn as total sales revenue increased 29% to Zl 29.2bn.

In its presentation of its first-quarter results, Orlen concluded that it had a “safe financial position in a volatile macro environment”.

($1 = Zl 3.19 / $1 = €0.76)

By: Will Conroy
+44 20 8652 3214

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