Poland's PKN Orlen Q3 petchem op profit falls 42% year on year

25 October 2012 09:06  [Source: ICIS news]

LONDON (ICIS)--PKN Orlen’s third-quarter operating profit for its petrochemical division fell by 42% to zlotych (Zl) 213m ($66.6m) from the same period a year earlier, because of extensive plant shutdowns and challenging markets, the Polish group said on Thursday.

Its petrochemical sales volumes edged down 1% to 1.34m tonnes in the third quarter of 2012 from 1.36m tonnes a year ago, PKN Orlen said. Its third-quarter operating profit in 2011 was at Zl367m.

“The correlated stoppages of the Olefin II and PTA [purified terephthalic acid] units at PKN Orlen as well as at [joint venture] Basell ORLEN Polyolefins and [polyvinyl chloride (PVC) and fertilizer subsidiary] Anwil, combined with lower petrochemical margins, which fell year on year by €38/tonne to €625/tonne, eroded the petrochemical segment's operating result for Q3 2012,” the company said in a commentary on its latest financial results.

“This was partly offset by stronger sales of fertilisers,” it added.

Sales volumes for olefin, polyolefin and PTA were down by 8% year on year, while PVC volumes fell by 19%. However, fertilizer sales volumes rose by 15%, PKN Orlen said.

The  company, which is also a refiner, announced overall third-quarter net profit of Zl1.42bn compared with a net loss of Zl249m a year ago, because of firmer refining margins.

Sales revenues rose to Zl31.65bn from Zl28.68bn, the group added.

($1 = Zl3.20)

By: Will Conroy
+44 20 8652 3214

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