MOSCOW (MRC) -- Poland’s PKN Orlen Group said that higher margins drove its petrochemical operating result to zloty (Zl) 250m (USD66.8m) in the fourth quarter of 2020 from Zl 2m in the same quarter of the previous year, said the company.
PKN Orlen, the state-controlled oil refining giant announced its financial report for 2020, indicating that the net profit of the company, after including the profits from taking over energy company Energa was at PLN 3.4 bn (EUR 0.76 bn).
"In 2020 we recorded very solid results, despite the unfavourable conditions caused by the [COVID-19] pandemic. The key to the success in the fuel-energy trade is diversifying the areas of activities. This is why we observe the trends and respond to them, which directly results in financial results,” Daniel Obajtek, the CEO of PKN Orlen said.
The EBITDA LIFO result was PLN 12.1 bn (EUR 2.69 bn) and the income from sales was at PLN 86.2 bn (EUR 19.19 bn), the consolidated report after Q4 2020, published by Orlen reads.
The company stated that the key investments in development had continued and PLN 9 bn (EUR 2 bn) was spent on that purpose. The retail segment achieved a record result of PLN 3.3 (EUR 0.73 bn), while the energy sector recorded EBITDA LIFO profit at PLN 3.4 bn (EUR 0.76 bn).
As MRC reported earlier, in December 2020, PKN Orlen (Plock, Poland) announce that the company will invest an average of 4.4 billion zloty (USD1.2 billion) per year between 2021 and 2030 on a major expansion of its integrated petrochemicals business and the creation of a plastics recycling division as part of an enhanced strategic focus on petchems and renewables over the next 10 years.
Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).
According to MRC's DataScope report, PE imports to Russia decreased in January-November 2020 by 17% year on year and reached 569,900 tonnes. High density polyethylene (HDPE) accounted for the greatest reduction in imports. At the same time, PP imports into Russia increased by 21% year on year to about 202,000 tonnes in the first eleven months of 2020. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.
MRC