Bank sees US polyolefin export threat to Poland’s PKN Orlen

23 November 2012 15:16  [Source: ICIS news]

LONDON (ICIS)--Central European petrochemical producers such as Poland’s PKN Orlen may face competition from new waves of polyolefin products exported from the US, a Polish bank said on Friday.

Orlen’s petrochemical margins over the next two years could come under pressure as “new, export-oriented polyolefin capacities from the U.S. may begin to flood European markets,” Tomasz Kasowicz, an analyst at Warsaw-based bank Zachodni, said in a note to investors.

Noting also that Orlen’s earnings are set to suffer further from low refining margins, Kasowicz initiated Zachodni coverage of Orlen stock with a ‘Sell’ recommendation.

Earlier on Friday, Fitch Ratings said that it may upgrade Orlen’s current credit rating – BB+ with a 'Positive' outlook – in one or two years time if the group’s credit ratios remained at moderate levels.

Orlen has said it will only issue Eurobonds if it receives an upgrade to investment grade from the credit rating agencies.

The Polish group is the 63%-owner of Czech polyolefins manufacturer Unipetrol and manufactures its own polyolefins in Poland at its main site in Plock.

By: Will Conroy
+44 20 8652 3214

AddThis Social Bookmark Button

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.

Printer Friendly

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