MOSCOW (MRC) -- Petrochemical operating profit at Polish oil, gas and petrochemicals group PKN Orlen almost tripled to zloty (Zl) 802m (USD201m) in the third quarter, with higher margins countering lower sales volumes, said the company.
Polish energy company PKN Orlen saw revenues climb by 52% year on year in the third quarter of 2021. Orlen said the result was due to higher prices of refinery products due to a year-on-year rise in crude oil prices of USD 31 a barrel.
The company's quarterly results, published on Thursday, showed that a 2% rise in sales volume also had an effect on incomes. The company's EBITDA LIFO (earnings before interest, tax, depreciation and amortisation, last-in-first-out inventory method) indicator rose by PLN 2.3 bn (EUR 500 mln) year on year.
Orlen said this was due to the positive influence of the macro environment, higher sales volumes, a higher margin on wholesale trade and higher margins in non-fuel retail as well as a revaluation of inventories to obtainable prices.
These positive effects were partly mitigated by the negative effects of lower margins on fuel retail, higher CO2 emission reserve costs and higher labour costs, Orlen said.
As per MRC, Orlen Unipetrol (part of PKN Orlen), a major Czech producer of petrochemical products, will expand the capacity of its steam cracker in Litvinov (Czech Republic) by installing a new furnace. The new cracking unit will be built by Technip Energies in Zaluzi, the largest chemical plant in the Czech Republic, and is due to be commissioned in 2022. Orlen is investing over 700 mln Polish zlotys (Zl) in the project.
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,396,960 tonnes in January-July 2021, up by 7% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 841,990 tonnes in the first seven months of 2021, up by 29% year on year.
Czech Orlen Unipetrol is a joint stock company that deals with oil refining and production of petrochemical products in the Czech Republic and Central Europe. It is one of the ten largest Czech companies in terms of revenue. The company was founded in 1994 and since 2004 has been part of PKN Orlen, which owns 94.05% of the shares in the company.
MRC