June 30, ORLEN Lietuva repaid the loan to the Government of the Republic of Lithuania. Yesterday the Company transferred more than USD 181 million including interest rate, thus meeting all financial obligations two years earlier than the loan contract provided.

“Repayment of the loan is an important step in balancing Company’s finance which is in line with Company’s strategy where one of the pillars is continuation of its performance efficiency improvement. During the past quarters we achieved a significant improvement of financial results as well as our productivity. Among others these factors enabled us to collect financial means to repay our indenture to Lithuanian Government in advance” - said Ireneusz Fąfara, General Director of ORLEN Lietuva.

The loan agreement was concluded between the Government and at-the-time AB Mažeikių Nafta, when the company was privatized to Williams Companies, in October 1999.

Until 1999, the loans of the Government issued to Mažeikių Nafta amounted to USD 177.5 million. The borrowed funds were used to finance construction of Būtingė Terminal and to supplement working capital. Later in 1999 the Company borrowed additional USD 111.5 million for working capital and investment. The total value of the Government’s loans to Mažeikių Nafta amounted thus to USD 289 million.

The indebted Company was acquired by PKN Orlen in 2006. The debt and the loan agreement was fully recognized and executed by the new owner. Orlen Lietuva returned earlier full loan amount and paid to the Government USD 267 million dollars of interest.

Under the terms of the loan agreement, the Company paid yearly interest rates since 1999 and started loan capital repayment in 2009. At the time the Government  received USD 36 million; in 2010 – USD 72 million. ORLEN Lietuva borrowed funds to repay the loan to the Government through its shareholder PKN ORLEN.