ORLEN Lietuva Increased Q2 EBIT by USD 24 mn
OREANDA-NEWS. July 31, 2012. Financial results in Q2 of 2012 compared to Q2 of 2011:
EBIT according to LIFO increased by USD 24 million;
Higher sales on the Baltic markets by 6 per cent;
Increase in the Baltic market share by 4 p.p. Y/Y;
Increase in middle distillate yields by 1.2 p.p. Y/Y;
Lower capacity utilization by 26 p.p. due to Refinery Turnaround.
ORLEN Lietuva’s consolidated profit at EBIT level according to LIFO increased by USD 24 million (from loss of USD 13 million in Q1 2012 to profit of USD 11 million in Q2 2012). The Company posted the negative EBIT in Q2 2012 on the level of USD 68 million.
“The Company’s performance in Q2 2012 is a result of the Refinery Turnaround in May and related total lower sales, caused by 7-per cent lower consumption of petrol comparing to Q2 2011. Large scope investment into the modernization of the Refinery will contribute to achievement of our long-term goal – improve profitability of the company. Moreover, the wholesale price of fuel on Lithuanian market was strongly influenced by oil prices and exchange rate fluctuations," said Ireneusz Fafara, General Director of ORLEN Lietuva.
The Refinery Turnaround contributed to decrease in Q2 2012 of the capacity utilization by 26 p.p. and by 15 p.p. in the first six months 2012 Y/Y. However, during the H1 2012, the production of middle distillates – jet and diesel fuel – increased by 1.2 p.p.
Despite the lower production outputs, in Q2 2012 the Company’s sales to the Baltic markets increased by 6 per cent, and the market share grew by 6 p.p. In comparison of H1 2012 to H1 2011, the Company expanded its market share in these countries by 4 p.p.
ORLEN Lietuva successfully performed the 35-day Refinery Turnaround. During the maintenance, more than 54 various sustaining capital and modernization projects were implemented, including the replacement of the FCC reactor cyclones, installation of the Chiller in the Vacuum Distillation Unit, modernization of the internals in the rectification and stabilization towers, implementation of the distributed control system in the secondary refining process. The Refinery Turnaround had adverse impact on operating profit at the level around USD 30 million.
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