02 August 2012 12:55 [Source: ICIS news]
LONDON (ICIS)--PKN Orlen is facing a troublingly low model petrochemical margin that has quickly fallen from a peak to a trough level, an investment bank said on Thursday.
“The current level of the petchem margin is truly worrying,” said Wood & Company in a note to investors.
Orlen's latest figures show its model petrochemical margin in July at €536/tonne ($654/tonne), compared with €740/tonne in June and €819/tonne in May, which is the peak level for 2012 so far. The only worse monthly figure than July was in January, when the margin stood at €529/tonne.
The model petrochemical margin in July 2011 was €678/tonne, Orlen added.
The margins experienced by Poland's Orlen at the beginning of the year and now again in July are “unsustainably weak”, according to analysis from Wood & Company, which said it remained “neutral” on Orlen stock.
On 26 July, reporting second-quarter figures, Orlen said sales volumes of petrochemical products edged down by 2.9% year on year to 1.21m tonnes mainly because of “market expectations of falling prices because of decreasing crude oil prices”.
($1 = €0.82)
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