In Q3 2016 ORLEN Lietuva noted:
• EBITDA LIFO of USD 48 M,
• Increase in inland sales by 22% vs 2Q16 and
• net profit of USD 14 M,
• 98,1% capacity utilization
ORLEN Lietuva noted positive financial results in the third quarter. The Company was able to challenge the market by improving its performance through permanent increase of inland sales. Revenues of ORLEN Lietuva were higher in Q3 compared to 2Q (USD 949M vs USD 882M) as a result of higher sales volumes. At the same time the revenues were lower (Y/Y) reflecting lower crude oil price and lower quotations of refining products.The Company noted higher utilization by 10 pp (Y/Y) mainly due to no impact of maintenance shutdown of the refinery from 3Q15 and sales increase.
“It is the following quarter of positive financial results in ORLEN Lietuva. We were able to significantly increase inland sales and capacity utilization. This proves that our team remains focused on improving our operational excellence and is able to adjust to very challenging market.” – said Ireneusz Fąfara, General Director of ORLEN Lietuva.
The net results is lower than in second quarter also because of one-off, that is reevaluation of crude oil stocks related to its market value change.
In third quarter of 2016 ORLEN Lietuva inland sales rose by 22% compared to second quarter this year and by 11% (Y/Y). Notable sales increase was recorded in home market, Latvia and Estonia. It is a positive factor in this dynamic market.
ORLEN Lietuva is the biggest Lithuanian company, exporter and tax payer. Since 2006, PKN ORLEN has spent nearly USD 4 billion on the acquisition and further investments in the Mazeikiai refinery.
The Company permanently suffers from high logistical costs. Therefore PKN ORLEN, as the only shareholder, undertook all accessible measure to restructure the Company and implement a strategy that enables ORLEN Lietuva to adjust to market conditions: maximize the production and thus the economic effect whenever the market is favorable. And on the other hand introduced solutions could help to minimalize it, when the market is low.
PKN ORLEN is a modern player on the fuel and power market, the largest company in Central and Eastern Europe, and the only Polish company listed among the prestigious Fortune 500. Furthermore, ORLEN is the only company in the region to have been named The Most Ethical Company of 2014, 2015 and 2016 by the US Ethisphere Institute.