Polish Briefing 29 October, 2018 9:00 am   
COMMENTS: Mateusz Gibała

Polish Briefing: One-third of Orlen’s oil comes from outside Russia. “We want to keep diversifying”

What goes on in Poland on the 29th of October.

One-third of Orlen’s oil comes from outside Russia. “We want to keep diversifying”

PKN Orlen wants to reduce oil imports from the East. It allows the possibility of further contracts for deliveries from outside of Russia.

– We strengthen our position in oil supply contracts from the Middle East region. We have already signed an extension of our contract with Saudi Aramco. I think that soon we will be able to inform about the conclusion of contracts for the supply of crude oil of new species – said the PKN Orlen Management Board Member, Zbigniew Leszczyński during the PKN Orlen result conference for the third quarter of this year.

PKN Orlen member of the management board for financial affairs, Wiesław Protasewicz, said that the company is investigating the supply of crude oil and exploring it all the time. – They have had an effect in the form of oil supplies from Nigeria. Unlike oil from Russia, it is less sulphated and new products can be obtained. We are constantly researching and will want to further diversify oil supplies. At present, import rates of REBCO crude oil (Russian mix – ed.) is 70 per cent. We want to keep diversyfying our mix – he said.

Expensive oil does not help Orlen Lietuva

Orlen Lietuva’s revenues are growing. The company reported the results for the first three quarters of this year. However, operating profit has decreased by more than 50 percent.

Orlen Lietuva’s sales revenues in the first three quarters of 2018 amounted to PLN 14,36 billion. It is 20 percent more than compared to the same period in the previous year, when profits amounted to PLN 12,018 billion. Operating profit, however, fell by 51 percent from PLN 626 million to PLN 307 million. Profit before interest, taxes, depreciation (EBITDA) amounted to PLN 447 million PLN and was by 42 percent lower than last year, when it amounted to PLN 770 million.

In the third quarter of this year, the company’s revenues amounted to PLN 5,53 billion. It was 30 percent higher than in the corresponding period of the previous year (PLN 4 256 billion).

In the company’s report, you can read that sales in the third quarter fell by 10 percent in relation to the same quarter last year, but the increase in revenues was caused by the increase in oil prices. The workload of the Mazeikiai refinery fell by 4 percent from 106 percent up to 102 percent due to deteriorating macroeconomic conditions.