OREANDA-NEWS. May 04, 2011. Financial results in Q1 of 2011 compared to Q1 of 2010:

Positive EBIT result in the amount of USD 53 million;

Higher capacity utilization by 18 p.p.;

Higher sales volume by 27%;

Reduced fixed costs by 12%;

Decreased net debt by USD 308 million, reported the press-centre of ORLEN Lietuva.

In the first quarter of 2011 ORLEN Lietuva total EBIT was USD 53 million, whereas in the same period of 2010 loss on EBIT of USD 14 million was generated. In Q1 2011 Company generated net profit of USD 52 million, while net loss of USD 28 million was posted in Q1 2010. Operating cash flow in Q1 2011 was USD 28 million, i.e. while in Q1 2010 it amounted -80 million USD. Net debt amounted to USD 228 million and was lower by USD 308 million compared to Q1 2010.

In Q1 2011 ORLEN Lietuva was continuously concentrating on market share increase in domestic markets. In spite of decline of gasoline consumption in Baltic countries, the Company achieved 5% higher total sales volume in domestic market compared to the same period of previous year. Total sales volume amounted to 2.1 million tons and increased by 0.4 million tons i.e. 27% compared to Q1 of 2010.

Q1 2011 figures show that the Company reduced fixed cost by USD 5 million, i.e. 12% versus Q1 2010. and decreased depreciation by approximately USD 2.7 million in Q1 of 2011 as a result of assets revision process.

- First three months show that we are strongly improving our performance. We are committed to raise  our ability to drive sales and control costs, that allow us to accelerate the process of increasing our business efficiency - said Ireneusz Fafara, ORLEN Lietuva’s General Director.

During the first three months of 2011 ORLEN Lietuva refinery operated at a capacity of 85% enabling to process 2.2 million tons of crude oil which is higher by 27 percent comparing to Q1 of 2010. At the end of March a periodic spring shut down of refinery process units was started to perform maintenance, overhaul and repair operations, to inspect, test and replace process materials and equipment. The shutdown lasted 18 days.

The main external factor negatively affecting Q1 results was high oil price which was only partially offset by positive impact of URALS/Brent crude oil differential.

Ireneusz Fafara plans that, in upcoming months the Company will continue implementation of the improvement program launched in 2010.  It will keep its focus on sales, operational efficiency improvement, as well as increase in production units availability and utilization.  It will be supported with decrease of costs, especially in logistics and energy consumption.