In Q2 2016 ORLEN Lietuva noted:
• EBITDA LIFO of USD 72m,
• Lower capacity utilization by 7 p.p (Y/Y),
• net profit of USD 77m,
• 19m USD CAPEX in 6M16.
ORLEN Lietuva continues to benefit from favorable market conditions with USD 128m profit after first 6 months of 2016, USD 77m of that amount was noted in the second quarter 2016. The company has also managed to increase its inland sales, that improved the profitability of operations. Similar to the first quarter of this year, the incomes were lower compared year to year (USD 1 252m in 2Q15 vs USD 882m in 2Q16) due to the reduced oil and products prices.
“We managed to perform well in 2Q16 and deliver high financial results. I’m also very satisfied to note that all the efforts and input made to improve our operational excellence is bringing us benefits. We are very proud of our “Safety first” and “Lean management” programs that deliver positive business results every day. During the first half of 2016 19 million dollars was also invested in technical improvements of ORLEN Lietuva installations and further investments are planned in the upcoming months” – says Ireneusz Fąfara, General Director of ORLEN Lietuva.
Though ORLEN Lietuva noted a second profitable quarter in 2016, the financial indicators are lower than last year. EBITDA LIFO in 2Q2016 reached USD 72 m while it was USD 139 m in 2Q2015. This is primarily caused by lower refinery and market margins than 12 months ago.
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.