Page 8 - EurOil Week 31 2021

EurOil PIPELINES & TRANSPORT EurOil

IOG sells UK North Sea

gas to Gazprom

UK LONDON-LISTED IOG announced on July 29 all of our gas into the Bacton terminal complex,
it had signed a contract to sell natural gas sup- an important UK gas hub relatively close to
The agreements covers plies from some of the fields it is developing in major demand centres, we expect to benefit from
supplies from some of the UK North Sea to the marketing and trading favourable pricing.”
IOG’s phase-one and arm of Russia’s Gazprom. IOG will sell its gas to Gazprom on a day-
phase-two fields. The gas sales agreement reached between the ahead basis at prices linked to the UK’s NBP
pair covers supplies during the first two years of benchmark. The deal gives IOG room for phys-
production at the Elgood and Southwark fields ical gas hedging to help the company manage
in the southern North Sea, which are both on risks, it said.
track to start flowing gas next year. The fields IOG started development drilling at its
form part of the first phase of IOG’s development south North Sea fields in April, with the first
plans in the region. of the fields, Blythe, on track to start pro-
The agreement also provides for gas from the duction in the current quarter. Supplies from
Nailsworth and Elland fields, due to be devel- that field are covered by an offtake deal IOG
oped under IOG’s second development phase. reached with BP Gas Marketing in February
Gazprom, which is a significant gas trader in 2014.
the UK, was selected as a buyer during an offtake IOG is developing the cluster of fields in
competition that attracted bids from 10 bidders, partnership with Berkshire Hathaway-owned
IOG said. CalEnergy, which farmed into the licence in 2019
“We were pleased at the strong interest in just before a final investment decision (FID) was
offtake rights for our gas, which helped to secure taken on their development. The overall plan is
attractive terms for IOG,” CEO Andrew Hockey to recover some 410bn cubic feet (11.6bn cubic
commented in a release. “As we will be delivering metres) of gas. ™

PERFORMANCE

PKN Orlen posts highest

net take in history

POLAND POLAND’S state-controlled refiner PKN Orlen quadrupled y/y to PLN1.02bn, supported by
posted an attributable net profit of PLN2.23bn “higher margins on olefins, polyolefins, fertiliz-
The result is the highest (€490mn) in the second quarter, the company ers and PVC, valuation and settlement of CO2
in the company’s said on July 29. contracts.” The weakening of the zloty against the
history. The result is the highest in the company’s his- US dollar also played a role.
tory – although only after ignoring the Q2 2020 Ebitda lifo in the retail segment came in at
one-off boost to net profit that followed the take- PLN828mn, thus growing 14% y/y. That was
over of the state-controlled utility Energa. supported by sales volume growth even if fuel
PKN Orlen’s sales came in at PLN29.42bn, margins in Poland, Germany, and the Czech
jumping 73% y/y. Pre-impairment ebitda lifo Republic declined.
– which is earnings adjusted for the changing In the upstream segment, PKN Orlen’s Lifo-
value of inventories – declined 43.7% y/y to based ebitda ballooned 500% y/y to PLN60mn
PLN3.21bn. with the prices of hydrocarbons - namely crude
Broken down by main business segments, oil, natural gas and NGL - on an upward trend,
refining posted an ebitda lifo of PLN298mn and a negative contribution from hedging trans-
on the back of “negative macro impact due to actions, the company said.
lower cracks on diesel and high sulphur fuel Orlen’s stock grew 1.4% to PLN72.54 on the
oil,” as well as the zloty strengthening against Warsaw Stock Exchange on July 29. Year to date,
the US dollar. the company’s share price has gained 32.05%.
Ebitda lifo in the petrochemical segment The company’s market cap is PLN31bn. ™

P8 www. NEWSBASE .com Week 31 05•August•2021