22 October 2012 13:33 [Source: ICIS news]
LONDON (ICIS)--WOOD & Company on Monday downgraded its recommendation on the stock of Polish oil and petrochemical group PKN Orlen from ‘Hold’ to ‘Sell’, noting difficulties with subsidiaries which management is struggling to resolve.
“We continue to see serious problems with the nonperforming subsidiaries and we are not aware of any solutions from management in sight,” the investment bank added in its latest analysis of Orlen.
The bank said it believed Unipetrol might have to streamline capacity further to achieve break-even operations, something which the company, in early September, said it was considering.
The downgrade on Orlen’s stock was also issued because European refining is structurally challenged and due to the bank’s analysts viewing “Orlen’s expansion in power generation, and in other non-core areas, with concern”, WOOD & Company said.
Orlen’s 2012-2017 strategy, which has been delayed since the beginning of this year, is due to be published in December following a November board approval process.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
Asian Chemical Connections