AB ORLEN Lietuva, a company owned by the Polish Oil Concern ORLEN, 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.
‘Our priority based on the business directions anticipated in ORLEN2030 Strategy is dynamic expansion of ORLEN assets in Lithuania, also enhancing of AB ORLEN Lietuva positions on the market. AB ORLEN Lietuva is a company of strategic importance; it operates the only crude oil refinery in the Baltic States, and has extreme significance on the region’s energy security. Acquisition of the loading terminal in Mockava (the Terminal), next to Lithuania-Poland border, is not only to enhance the security, but also allow assuring stable supply of the products to Poland. This will be beneficial not only to the Concern, but also to the economics of both countries’, says President of the Management Board of PKN ORLEN Daniel Obajtek.
The Terminal in Mockava, which was built in 2017, including the land plot occupies the area of 40 ha. Its product storage capacity is 19 m3, and its loading capacity amounts to 1.2 million tons of liquid petroleum products a year. The transaction was concluded by AB ORLEN Lietuva in cooperation with consultancy firm ‘PwC’ and lav firm ‘PwC Legal’.
‘A project of strategic significance to the future of AB ORLEN Lietuva has been accomplished successfully. Up till now, we have been using the services of Mockava Terminal under a cooperation agreement. Taking over the control of the Terminal will allow us to save considerable funds and increase business flexibility as well as independence. Eventually, we will have the possibility to implement ambitious Terminal development plans’, states AB ORLEN Lietuva General Director Michal Rudnicki.
AB ORLEN Lietuva is an important part of ORLEN Capital Group. It contributes to the creation of the value of the Group and generates significant financial effect. The Company closed the first quarter of the current year with USD 752.7 million revenue, USD 23.6 million net profit, and USD 17.9 million EBITDA LIFO. The positive result was also achieved through innovative projects as well as optimization initiatives implemented at Mažeikiai Crude Oil Refinery.
The Refinery is the second in ORLEN Capital Group according to its throughput, which amounts to 10 million tons of crude oil a year. Since the start of operation, the Refinery has processed ~330 million tons of crude oil.
Petroleum products produced at the Crude Oil Refinery located in Mažeikiai District are supplied not only to the Lithuanian, but also Latvian, Estonian and Polish markets. The performance of AB ORLEN Lietuva has high significance on the economics of both Lithuania and Poland. It is one of the largest companies in Lithuania with approximately 1.5 thousand employees; 90 per cent of them are residents of Mažeikiai and neighboring districts. The Company is also among the largest exporters and tax payers; its contribution to the country’s budget amounts to 15 per cent.
ORLEN Lietuva inf.