Poland’s Orlen petchem ops swing to €64m operating profit

23 January 2013 08:31  [Source: ICIS news]

LONDON (ICIS)--PKN Orlen’s petrochemical operations posted an operating profit of zloty (Zl) 267m  ($85m, €64m) in the fourth quarter of 2012, a reversal of the Zl 1.3bn loss recorded in the same quarter of 2011, largely on better margins, the Polish group said on Wednesday.

Petrochemical revenues in the fourth quarter grew to Zl 5.1bn from Zl 4.4bn in the same quarter of the previous year, Orlen said.

The company’s quarterly model petrochemical margin rose to €729/tonne from €609/tonne a year ago, and from €625/tonne in the third quarter of 2012. As of 18 January, Orlen was estimating that the margin is on track to hit €744/tonne in the first quarter of this year.

“The positive impact of higher petrochemical margins year on year, and the negative effect of changes in exchange rates overall led to an increase in the petrochemical segment’s operating result by Zl 113m year on year,” the company said.

“Higher olefins and polyolefins sales volumes year on year, mainly due to the few production constraints such as those in the fourth quarter of 2011 experienced by [subsidiary] Unipetrol as a result of a cyclical turnaround, as well as stable purified terephthalic acid (PTA) volumes and an increase in fertilizer and polyvinyl chloride (PVC) sales year on year contributed to an operating result increase of Zl 36m year on year,” Orlen added.

A negative effect on the petrochemical operating result amounting to Zl 44m stemmed from an inventory revaluation, the company said.

Orlen, also a refiner, recorded an overall net loss of Zl 276m for the fourth quarter of 2012, compared to the Zl 619m net profit achieved in the same quarter of the previous year.

It blamed a major refining asset writedown at Czech subsidiary Unipetrol and shrinking refining margins for the losses.

Year on year, the company’s fourth-quarter sales revenue rose to Zl 31.2bn from Zl 30.0bn.

($1 = Zl 3.14 / €1 = Zl 4.18)

By: Will Conroy
+44 20 8652 3214

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