Page 16 - EurOil Week 05 2022

EurOil NEWS IN BRIEF EurOil

When Eni and Novatek complete the marking a growth of 75% versus 2020. in 2018, after Turkey, protesting at the US
works on this site, they should begin a new Last year’s attributable net profit came moving its embassy to Jerusalem, once
exploration, to a hall with depth of 1,000 in at nearly PLN10.2bn, growing 269%. more recalled its envoy from Israel. Israel
metres. However, the capital investment Revenues grew 53% to PLN131.6bn in responded in kind.
ministry still has no information on 2021. Turkey’s renewed interest in pushing
whether the consortium intends to carry The results hardly affected Orlen’s stock its project to deliver Israeli gas to Europe
out the second drilling. on the Warsaw Stock Exchange. The share appears to have been sparked by the US
Montenegro has so far concluded two price fall 0.89% to PLN73.8 at the close withdrawing support for the EastMed
concession agreements for offshore drilling of the day’s trading on the bourse. Orlen’s pipeline, a project designed to transit gas
in the region of Ulcinj and Bar. market cap is PLN31.6bn. from Israel to European states via Cyprus
The other contract was signed in Earlier this month, the world’s biggest and Greece.
2017 with the London-based company oil and gas company, Saudi Aramco, and The US State Department framed the
Energean, which currently is looking for Hungarian state-controlled MOL bought decision as part of the move away from
a partner to set up a consortium for the assets of Poland’s Lotos Group in a deal carbon-intensive projects and towards
project.. required by EU authorities as a condition cleaner energy alternatives.
for the Orlen-Lotos merger. After the rejection outlined by the US,
Following the merger, PKN Orlen’s next Erdogan told reporters: “This business [of
PKN Orlen posts 475% y/y goal is taking over another state-controlled transiting Israeli gas] cannot be done without
entity, the oil and gas exploration and
Turkey. Because if [gas] will be transferred
jump in net profit in Q4 production company PGNiG. to Europe from here, it will only happen
The end goal is the creation of a state-
through Turkey.”
Poland’s state-controlled refiner PKN controlled energy giant, able to move However, Charles Ellinas of the Atlantic
Orlen posted an attributable net profit of closer to giants like BP, Total, Shell, or Council on January 27 expressed scepticism
PLN3.2bn (€700mn) in the fourth quarter, Repsol, which are investing in their value at the possibility of a Turkish-Israeli
ballooning 475% y/y, the company said on chains and in prospective branches such as solution, telling Ahval it was “far-fetched”.
January 27. renewables or hydrogen. Even in the unlikely event that Tel Aviv
The good result owed to improvements agreed to the proposal, it would still face
in the refinery and petrochemical many of the same challenges that ended the
segments, the company said. ‘Israeli gas to Europe via prospects for the EastMed pipeline, he was
Overall, PKN Orlen’s sales came in at cited as saying, adding: “It’s not commercially
PLN41.16bn, jumping 73% y/y. Adjusted Turkey’ likely on agenda for viable.”
Ebitda LIFO – which is earnings adjusted
for the changing value of inventories – visit by Israel’s president
more than doubled, growing 108% y/y to EC to provide €78mn funding
PLN4.31bn. announced by Erdogan
Broken down by main business for Bulgaria’s Chiren gas
segments, refining posted an Ebitda LIFO An attempt by Turkey to revive a proposal
of PLN2.06bn on the back of a higher for the export of Israeli gas to Europe via a storage upgrade
Brent/Ural differential, an increase in Turkish hub looks set to be on the agenda
margins on light and medium distillates, as for an expected February visit to Ankara by The European Commission will provide
well as the weakening of the zloty against Israel’s president, Isaac Herzog—although €78mn under the Connecting Europe Facility
the US dollar and the settlement of CO2 analysts are not convinced the project would (CEF) to Bulgaria for the expansion of the
futures contracts. be commercially sound. Chiren underground gas storage, the state-
Ebitda LIFO in the petrochemical In an interview with private NTV owned gas network operator Bulgartransgaz
segment grew 118% y/y to PLN1.14bn, broadcaster late on January 26, Turkish said in a statement on January 27.
supported by higher margins on olefins, President Recep Tayyip Erdogan said his The project was included in the EC’s list of
polyolefins, PTA, PVC and fertilizers. Israeli counterpart would visit in the first half priority projects along with the construction
In the retail segment, Ebitda LIFO came of February. of the gas link to Serbia and rehabilitation of
in at PLN340mn, thus falling 38% y/y. Ties between Turkey and Israel have the local gas transmission network to the list
In the upstream segment, PKN Orlen’s grown tense under Erdogan, an outspoken of projects of common interest.
Ebitda LIFO was PLN57mn, a changeover critic of Israel’s policies toward the Following the expansion, the capacity
from –PLN860mn in Q4 2020. That was Palestinians. However, Erdogan said: “With of the Chiren storage will reach 1bn cubic
possible thanks to high prices of oil, gas, this visit, a new era can begin in the Israeli metres (bcm) from the current 550mn cubic
and gas condensate. and Turkish relationship.” metres. This is expected to stimulate the
The company also said that it would The countries withdrew their ambassadors diversification of gas supplies and increase
maintain its dividend policy of at least in 2010 after Israeli forces stormed a Gaza- competition.
PLN3.5 per share, in line with a strategy bound flotilla carrying humanitarian aid The total cost of the project is estimated at
update announced in November. for the Palestinians that breached an Israeli around €308mn.
In 2021 overall, Orlen posted an blockade. Nine Turkish activists died in
adjusted Ebitda LIFO of PLN14.2bn, the incident. Relations broke down again

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