Location: Home > News > Blue-chip oil firm PKN Orlen further limits debt levels Q2/2010

Blue-chip oil firm PKN Orlen further limits debt levels Q2/2010

  • Description

Date: 2010-09-01 07:23

The country's biggest downstream oil company PKN Orlen reduced its debt by another PLN 0.5bn q/q to PLN 9.8bn in Q2/2010, despite disadvantageous revaluation of its F/X liabilities, the company said in its commentary to the H1/2010 financial report.


This resulted in decreasing the financial leverage below 45%. Liquidity is additionally secured with unused credit lines worth over EUR 1bn and the fact that nearly 70% of debt will be repaid after 2012, it added. 

Despite limited growth in demand for fuels and lower fuel margins resulting from higher fuel prices, PKN Orlen increased its sales by 5% , including by 8% in the refining segment and by 5% in the retail sales sector. The best retail sales results were recorded in the Polish and German markets, whereas sales volumes in the Czech Republic and Lithuania dropped, it said. 

In Q2/2010, PKN Orlen posted consolidated net loss of PLN 5.25mn (EUR 1.27mn) vs. PLN 1170.66mn profit a year earlier . The result came in better worse than market expectations of a PLN 152mn profit on the average. Analysts expected this quarter's net result in the range of minus PLN 295mn to plus PLN 505mn. Consolidated revenue in this period was PLN 21068.42mn compared with PLN 16770.08mn a year earlier. In Q1-2/2010, the company posted net profit of PLN 587.87mn (EUR 146,81mn) compared with PLN 75.79mn (EUR 18.93mn) profit a year earlier, on sales of PLN 38510.50mn (EUR 9617.53mn) vs. PLN 31471.94mn (EUR 7859.73mn), respectively.

ISB, tom