OREANDA-NEWS. February 14, 2011. Highest quarterly processing volume during the last decade – at the level of 2.6 million tons, reported the press-centre of ORLEN Lietuva.

Higher capacity utilisation 102% - increase of 24 p.p.  compared to Q4 of 2009

Higher sales volume in amount of 2.4 million tons – an increase of 25% compared to Q4 of 2009
Positive EBIT result in the amount of USD 15 million – an increase of USD 26 million compared to Q4 of 2009

Reduced fixed costs by 9% compared to Q4 of 2009

Net debt in the amount to USD 267 million - decrease by USD 197 million compared to Q4 2009.

During the fourth quarter of 2010 ORLEN Lietuva achieved highest quarterly processing volume during last decade in the amount of ca. 2.6 million tons and it was 0.6 million tons higher than in same period of 2009.Mazeikiai refinery was operating at its full capacity by 102% and Company’s throughput increased by 31% in comparison with Q4 of 2009.

In Q4 ORLEN Lietuva achieved good sales performance. Particularly good results were reached in seaborne sales where they amounted to 1.6 million tons – 44% more than in the same period of 2009. Total sales volume amounted to 2.4 million tons and increased by 0.5 million tons i.e. 26 % compared to Q4 of 2009.

In the fourth quarter of 2010, ORLEN Lietuva total EBIT was USD 15 million – USD 26 million higher than in Q4 of 2009. The positive impact of inventory evaluation, improvement of macroeconomic factors and increase of volume sold were decreased in Q4 by USD -46 million because of the other operating income and expense balance including one-off, non cash items related to fixed assets write off and business risk provisions update.

In spite of that, the Company managed to break even and reach net profit of 1 million USD – a positive result in comparison with 4Q of 2009 when company suffered a loss of 41 million USD.
During last three months of 2010, ORLEN Lietuva succeeded to reduce fixed cost and salaries by USD 4 million, i.e. 9% versus Q4 2009.

Operating cash flow in Q4 was USD 65 million and was 14 % lower compared with Q4 2009. Net debt amounted to USD 267 million and was lower by USD 197 million compared to Q4 2009.

“Even though market conditions remained difficult the company managed to shift to positive numbers due to implementation of restructuring program focused on operational excellence and firm cost reduction. In the nearest future, the Company will continue its business optimisation process in order to improve its performance and ensure the sustainable growth in the current business environment”, said Ireneusz Fafara, ORLEN Lietuva’s general director.

Restructuring program was launched in Q1 of 2010 in order to counter the key industry challenges affected by the financial crisis and the global economic slowdown. The program focuses on operational efficiency improvement, increase in production units availability and utilization, decrease in energy consumption, commercial activities enhancement, fixed cost optimization. In Q4 it brought additional value in the amount of USD 17.4 million to the Company‘s financial results.

There were also external factors affecting the Company’s performance results such as world price levels, increased price of fuel consumed for production needs, increased demand of fuel products in target markets due to winter conditions, difference in prices of URALS and Brent type crude oil.