PKN ORLEN second quarter 2007 results
Excellent results in the retail and petrochemical segments and from the cost reduction programme in Q2 2007 have contributed to the ORLEN Group's very good results. Also, for the first time since the disruption in processing capacity due to fire damage, Mazeikiu Nafta generated a positive operating result. PKN ORLEN's EBITDA was PLN 1 874m which, compared to the same period last year, represents a 14% increase. The results of the OPTIMA program were 200% better than in Q2 2006.
In Q2 2007 PKN ORLEN generated PLN 16 218m in revenue, i.e. 19.6% more than in the comparable quarter of last year. The corporation achieved this increase through improved wholesale (32%) and retail (13%) sales of fuel products and petrochemicals (25%).
Operating profit grew 9.6% year on year, with net profit (of the parent company) up 27.6%. The Group's results were also positively impacted by financial operations, in particular by positive exchange rate differences.
The retail segment improved operating results by 144% compared to Q2 last year, an increase to PLN 186m . This was primarily due to higher volumes of fuel sold in Poland (18.5%), the Czech Republic (21.1%), Germany (6%), and through consistent cost discipline.
Despite an 8% deterioration in the results of the refining segment due to the higher Zloty exchange rate, downtime, and modernization, to PLN 836m, Mazeikiu Nafta's significant improvement in revenues and profitability should be noted. Thanks to the consistency and determination of the Board and employees in restoring production capacity and improving efficiency, the Lithuanian company has generated a positive operating result in refining for the first time since the disruption caused by the fire. Mazeikiu Nafta's Q2 2007 revenue amounted to USD 958m, with a net profit of USD 45m, whereas in Q1 2007 the company had reported a net loss of USD 57m.
Results in the chemical segment grew over 100% to PLN 69m compared to Q2 2006, thanks to Anwil's efforts in cooperation with Spolana, savings generated by the OPTIMA program, and an 11.8% improvement in refining margins PVC.
The petrochemical segment also reported significantly better results compared to the same period of last year - up 56% to PLN 349m. This was attributable primarily to improvements in effective capacity usage and better global market conditions.
The consistent implementation of the OPTIMA program has generated savings of PLN 133m, with the largest share thereof contributed by the refining (PLN 63.3m) and retail (PLN 37m) segments.
