For Q2 2022, ORLEN Lietuva Group has recorded:
- USD 1.704 billion revenue;
- 1.4 million tons of feedstock processed in the refinery;
- USD 255 million EBITDA LIFO loss;
- USD 209 million net loss;
- increase of sales in the Baltic region by aver. 12 percent vs Q1 2022.
Tense macroeconomic situation in the world has affected quarterly results of ORLEN Lietuva. EBITDA LIFO in Q2 2022 was at the level of USD 255 million loss vs USD 17.5 million EBITDA LIFO loss in the same period last year. The results of Q2 2022 were affected due to impairment of fixed assets by USD 162.2 million. In Q2 2022, ORLEN Lietuva had USD 209 million net loss vs USD 12 million net loss in Q2 2021. Such impairment resulted from unstable global geopolitical situation and volatility of market prospects. Impairment test was conducted on the basis of future macroeconomic assumptions provided by PKN ORLEN. The test showed that recoverable amount of assets is lower than carrying amount.
Total revenues of Public Company ORLEN Lietuva for Q2 2022 were by 46% higher vs the same period last year (USD 1.165 billion in Q2 2021 vs USD 1.704 billion in Q2 2022). Significant increase of revenues was driven by intensive boost of global crude oil and petroleum product prices. If to compare Q1 and Q2 of this year, the sales of products increased in all Baltic countries: in Lithuania by 9 percent, in Latvia by 15 percent, in Estonia by 14 percent.
Though last quarter the only crude oil refinery in the Baltic States was shut down for 40 days for turnaround and modernization, during the remaining period of the quarter refinery processed over 1.4 million tons of feedstock (vs nearly 2 million tons processed in three months of Q2 2021).
‘Macroeconomic conditions in the world are continuously changing and at some points become extremely difficult. ORLEN works on strengthening of its position in oil market and plans vast investments into development,’ said Michal Rudnicki, General Director of ORLEN Lietuva. ‘On 11 August of this year, the only crude oil refinery in the Baltic States will have a ground-breaking ceremony which will open the construction of new Residue Conversion Unit. This project plays huge role for the economy and energy security of the region is also the biggest Polish capital investment in Lithuania. This investment will increase the yield of high-margin products, improving the Company’s profitability and enhancing its resilience to market fluctuations.’
Since 2006, PKN ORLEN has spent nearly USD 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 listed among the prestigious Fortune Global 500.
ORLEN Lietuva inf.