OREANDA-NEWS. February 13, 2012. Financial results in Q4 of 2011 and FY 2011 compared to the same periods of 2010:

Higher revenues by 20% in Q4 and by 41% Y/Y;

Higher EBIT by USD 19 million Y/Y;

Record-high light product yield – by 0.4 p.p. higher vs. 2010.

Lowest in history internal usage of fuel and losses – by 0.3 p.p. lower vs. 2010.

Increase in the Baltic market share by 13 p.p. Y/Y;

Savings in fixed costs by 3% vs. 2010;

New agreement with AB Klaipedos Nafta signed.

In the face of global refining overcapacities and squeezed margins in 2011 ORLEN Lietuva continued its path towards operational efficiency improvement and focus on cost efficiency. As a result, the Company generated the consolidated EBIT of USD 31 million for 12 months of 2011, which is by USD 19 million higher, compared to 2010. The profit on the EBIT level of USD 69 million accumulated in the 1st half of 2011 was partially offset by the losses recorded for Q3 and Q4 amounting to by USD 24 million and USD 14 million respectively mainly related to the poor refining margins, unfavourable fluctuations in oil product world prices and inventory revaluation effect.

“During the first half-year, we achieved a significant improvement of financial results as well as our productivity; however, sharp drop of the margins and the rise in crude oil prices in the second half weighed on earnings. As economic situation on global markets remains unpredictable, we have to keep our focus on sales and operational efficiency,” said Ireneusz Fafara, General Director of ORLEN Lietuva.

In 2011, the Company recorded net loss of USD 1 million, while net loss of USD 31 million was generated in 2010. In 2011, ORLEN Lietuva undertook firm actions for its debt restructuring. A long-term loan to the Government of the Republic of Lithuania in the amount of USD 181 million was refinanced by the long-term credit facilities from the PKN ORLEN group under more favourable conditions, ensuring lower financing costs in the future. In addition, the Company withdrew excess overdraft facilities in the amount of USD 120 million by refinancing it with long-term loan from SEB (USD 150 million).

ORLEN Lietuva achieved substantial improvement in the operational area. The record light product yield is by 0.4 p.p. higher vs. 2010. It was reached due to implementation of upgrades in secondary refining processes and usage of more efficient feedstock mix. The lowest-in-history internal usage of fuel and losses was recorded, i.e. by 0.3 p.p. lower vs. 2010, as a result of progress in energy saving program launched in 2010. Successful completion of the fifteen-day spring shutdown in April resulted in improvement in the unit operational availability by 0.02 p.p. compared to 2010. The USD 40 million investment program was completed in 2011.

In 2011, ORLEN Lietuva succeeded in fulfilling its strategic objectives associated with increase in its market share on the Baltic markets, which improved by 13 p.p. Y/Y, and maximization of the total sales volume on inland markets, where higher sales by 0.6 million tons or 18% were recorded.

Total sales volume on both the western and eastern markets was by 0.4 million tons higher vs. 2010. 

A long-term agreement was concluded with AB Klaipedos Nafta, a state-owned oil products terminal located in the port of Klaipeda. The agreement established the new lower transhipment rates and better operational conditions.