For the 2nd quarter of 2021, ORLEN Lietuva Group has recorded:
- USD 1.165 billion of revenue,
- Higher sales of petrochemical products by 367% (due to the planned maintenance shutdowns in Poland)
- 9 percent increase in sales to inland markets in comparison to the same period last year
- 72 percent refinery capacity utilization
Total revenues of Public Company ORLEN Lietuva for Q2 2021 were by 119% higher vs the same period last year (USD 532 million in Q2 2020 compared to USD 1.165 billion for Q2 2021). The sharp rise of the global crude oil and oil product prices in the spring of this year as well as increasing demand for all products and resulting growth in their sales caused by recovery from the global pandemic were the most important drivers for more than twice increase of revenues . Comparison of the second quarter of 2020 and the same period of 2021 shows even 64 percent higher sales to Poland, and 53 percent to CIS countries. Inland sales were by 9 percent higher vs Q2 2020.
‘Despite the continuous market changes, PKN ORLEN aims at expanding its presence on the market planning further considerable investments in its development’, said Michal Rudnicki, General Director of ORLEN Lietuva. ‘We are particularly pleased with the letter of intent signed on July 1st with the Ministry of Energy of the Republic of Lithuania to open the investment opportunities in deeper conversion technologies. Such investments would allow increasing the yield of high-margin products, improving the Company’s profitability and enhancing its stability’.
Also in 2Q2021 ORLEN Lietuva has acquired 100 per cent of shares in UAB Mockavos Terminalas. By doing this, the company has taken over the control of the only liquid products loading terminal operated at Lithuania-Poland border. The terminal is used for loading of petroleum products produced in Mažeikiai and intended for the Polish and Ukrainian markets.
In Q2 2020 market prices rose up significantly therefore, inventory revaluation to net realizable value had positive effect on financial results of ORLEN Lietuva – EBITDA LIFO was positive and amounted to USD 83.9 million. In Q2 2021 increase of prices, both of crude oil and petroleum products, was lower vs same period of last year, therefore this period was closed with EBITDA LIFO loss of USD 17.5 million. The effect of such results is also reflected in other financial indicators: ORLEN Lietuva closed the second quarter of this year with USD 12.2 million net loss, whereas the second quarter of the last year was profitable for the Company (USD 26.7 million in Q2 2020).
Since 2006, PKN ORLEN has spent nearly 4 billion on the acquisition and further investments in the refinery of Mažeikiai. ORLEN Lietuva has recently become a member of an integrated petrochemical chain of PKN ORLEN.
PKN ORLEN is a modern player on the fuel and power market and the largest company in Central and Eastern Europe. It was listed among the prestigious Fortune Global 500.
ORLEN Lietuva inf.