ORLEN Lietuva for the fourth quarter of 2019 achieved
- USD 16 million EBITDA LIFO,
- USD 22 million net profit,
- Increase of sale to inland markets by 14% year to year.
The Company challenged the unfavorable market by improving its performance through permanent increase of inland sales. It achieved a higher light product sales in all inland markets and higher bitumen export. In fourth quarter of 2019 ORLEN Lietuva inland sales rose by 7% compared to the same period last year and by 14% (Y/Y). It is a positive factor in this dynamic market.
Thus delivered positive financial results in the fourth quarter of 2019. If to compare to 2019 3Q the revenues of ORLEN Lietuva were slightly lower in Q4 2019 (USD 1.3 billion vs USD 1.28 billion). Net profit of the Company was stable and reached USD 22 million in 2019 Q4.
‘ORLEN Lietuva finished the last quarter of 2019 with positive results. We were able to stay on comparable level of net profit and revenues. Positive results were accompanied by record-breaking safety indicator – ORLEN Lietuva operates with no accidents for well over 640 days. This is the record of refinery, which has been operating for almost 40 years, told Michal Rudnicki, General Director of ORLEN Lietuva.
ORLEN Lietuva’s performance was affected by worse macro conditions in Q4 2019. It has mirrored in other financial and sales results of the Company. EBITDA LIFO in Q4 2019 was lower vs. Q3 2019 (USD 16 million vs. USD 46 million). Nevertheless ORLEN Lietuva noted an increase in the year on year EBITDA LIFO (USD 128 million in 2019 vs USD 57 million in 2018).
In 4Q 2019 ORLEN Lietuva has strengthen its position also through stronger cooperation with Lithuanian partners. Lithuanian Railways, acting in consultation with ORLEN Lietuva, has rebuilt a 19 kilometre long railway section between Mažeikiai and Renge, thus restoring the shortest rail route from the Mažeikiai refinery to Latvia, dismantled in 2008. After the line soon becomes operational, petroleum products will be delivered to the Latvian and Estonian markets via a shorter route instead of the more difficult and costly route used over the past ten years, which was over 150 kilometres longer.
ORLEN Lietuva is the largest Lithuanian company in terms of revenues, exporter and taxpayer. Since 2006, PKN ORLEN has spent nearly 4 billion US dollars on the acquisition and further investments in the refinery of Mažeikiai. It is the only refinery in the Baltic States, and it has recently become part of PKN ORLEN’s integrated petrochemical chain. ORLEN Lietuva is set to remain an important member of the Group, ensuring supplies of petroleum products to Lithuania, Latvia, Estonia, and Poland.
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.