26 July 2012 09:20 [Source: ICIS news]
LONDON (ICIS)--Petrochemical operating profit at PKN Orlen fell to zlotych (Zl) 379m ($110m, €91m) in the second quarter from Zl521m a year ago, with lower prices leading to an inventory revaluation loss of Zl142m, the Polish chemical manufacturer said on Thursday.
Sales volumes of petrochemical products edged down by 2.9% year on year to 1.21m tonnes, with plastics, polymer and fertilizer volumes falling by 8%, 3.1% and 7.1%, respectively, Orlen added.
“The lower sales volumes resulted mainly from market expectations of falling prices because of decreasing crude oil prices,” the company said.
The second quarter saw Orlen's model petrochemical margin drop by €23/tonne ($28/tonne) from a year ago to €772/tonne, with the company forecasting an acceleration of the fall during the third quarter to €539/tonne.
Orlen's petrochemical division also took a Zl62m charge from a lack of compensation revenues, partly related to a fire at Polish polyvinyl chloride (PVC) and nitrogen fertilizer subsidiary Anwil which occurred a year ago, it added.
However, exchange rate gains on purified terephthalic acid (PTA) and other petrochemical sales pushed up the result by Zl13m, it said.
Overall, Orlen – also a refiner – posted a net loss for the second quarter of Zl5m against the net profit of Zl899m achieved in the same quarter of 2011, with Lithuanian refining subsidiary Orlen Lietuva suffering a second-quarter operating loss of Zl269m after a longer than expected period of maintenance.
Net sales revenues rose by 9% year on year to Zl27.8bn.
($1 = €0.82)
($1 = Zl3.44, €1 = Zl4.18)
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections