15 July 2013 10:31 [Source: ICIS news]
LONDON (ICIS)--Polish PKN Orlen group’s petrochemical division enjoyed a surprisingly firm second quarter, an investment bank said on Monday.
However, given the low margins bedevilling its refining business, “Orlen’s underlying and reported earnings [for the quarter] are unlikely to be a cause for celebration, despite the very strong and resilient petchems contribution”, Prague-based WOOD & Company added.
Sticking to its ‘Sell’ rating on Orlen stock, the bank forecast that Orlen’s second-quarter petrochemical operating profit would be almost exactly flat year on year at zloty (Zl) 375m ($114.0m, €87.2m).
Orlen’s net second-quarter net profit was set to fall to around Zl 67m from Zl 5m a year ago, the bank estimated.
In the second quarter, Orlen’s model petrochemical margin hit €789/tonne ($1,025) in April, fell to €692m in May and rose to €712/tonne in June. The figures recorded in those three months in 2012 were €765/tonne, €819/tonne and €740/tonne.
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