OREANDA-NEWS. August 12, 2011.
Financial results in H1 of 2011 compared to H1 of 2010:

Improved EBIT result by USD 65 million.

Decreased net debt by USD 330 million.

Higher capacity utilization by 7 p.p.

Higher sales volume by 13%.

In the first half of 2011 ORLEN Lietuva total EBIT was USD 69 million, whereas in the same period of 2010 profit on EBIT of USD 4 million was posted. In H1 2011 Company generated net profit of USD 61 million, while net loss of USD 42 million was announced in H1 2010. Operating cash flow in H1 2011 was USD 249 million, i.e. while in H1 2010 it amounted to USD 82 million. Net debt amounted to USD 63 million and was lower by USD 330 million compared to H1 2010, reported the press-centre of ORLEN Lietuva.

In Q2 2011 ORLEN Lietuva achieved EBIT amounted to USD 16 million. Last year during the same period EBIT was USD 18 million. Comparing Q2 2011 to Q1 2011 EBIT dropped by USD 37 million from USD 53 million mainly due to lower refining margins and fluctuations in oil product world prices.

In spite of tough competition in H1 2011 ORLEN Lietuva managed to increase market share in domestic markets and recorded higher sales volume in Baltic countries by 17% compared to H1 2010. Moreover, intensification of sales activities in both western and eastern markets resulted in a total sales volume of 4.3 million tons, i.e. 13% higher compared to H1 2010.

“During the first half-year we achieved a significant improvement of our productivity and financial results. However economic situation on global markets remains still unpredictable. According to our strategy we focus on sales and operational efficiency”, - said Ireneusz Fafara, General Director of ORLEN Lietuva.

In H1 2011 ORLEN Lietuva refinanced its long term loan to the Government of the Republic of Lithuania in the amount of USD 181 million by the loan from PKN ORLEN. This should result lower financial costs.

In March-April ORLEN Lietuva successfully completed a 18 days spring shutdown. During the first six months of 2011 ORLEN Lietuva refinery operated at a capacity of 85% enabling to process 4.3 million tons of crude oil which is higher by 8 percent comparing to H1 of 2010 and succeeded to improve its internal consumption & losses by 0.7 p.p. and increase light product yields by 0.5 p.p.

In the second half of the year ORLEN Lietuva will focus on completion of efficiency increase projects, development of new markets and preparation for the refinery turnaround.