ORLEN Lietuva for the second quarter of 2019 achieved:
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USD 1.4 billion of revenue,
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USD 11.7 million EBITDA LIFO,
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17% increase in inland sales volumes of (Y/Y).
ORLEN Lietuva operates with profit despite the unfavorable changes of the macroeconomic environment. The positive performance in 2Q2019 of the Company was driven by sales volumes increase and growth of production efficiency.
The Company's revenues for the 2Q2019 increased by 9% (y/y), from USD 1.281 billion in 2Q2018 to USD 1.393 billion in 2Q2019. It was due to sales volumes increase in all Baltic countries (29% in Lithuania, 33% in Latvia, and 7% in Estonia) as well as in the countries of CIS (27%) and Poland (10%). It was a result of better utilisation and launch of the PPF Splitter installation. As a result of no maintenance shutdowns from 2Q18, ORLEN Lietuva noted increase in throughput and higher utilisation by 18 pp (y/y).
Positive results were accompanied by record-breaking safety and effectiveness indicators: 'Total recordable incident rate (TRR) and energy intensity index (EII) were the key achievements of the last quarter. ORLEN Lietuva operates with no incidents for well over 440 days, whereas the Company's EII in May was the best in the entire history of its operation. I am proud of the team demonstrating safety and effectiveness of performance', told Michal Rudnicki, General Director of ORLEN Lietuva.
Nevertheless, ORLEN Lietuva’s performance was affected by lower crude oil and products prices and negative impact of macro environment (decrease in B/U differential). It has mirrored in other financial results of the Company: EBITDA LIFO reduction by 61 percent (USD 31 million in 2Q2018 compared to USD 11.7 million in 2Q2019).
ORLEN Lietuva is the largest Lithuanian company, exporter and tax payer. Since 2006, PKN ORLEN has spent nearly 4 billion US dollars on the acquisition and further investments in the refinery of Mažeikiai.
PKN ORLEN is a modern player on the fuel and power market and the largest company in Central and Eastern Europe, listed among the prestigious Fortune Global 500, Platts TOP250 and Thomson Reuters TOP100.