Page 12 - EurOil Week 18 2021

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POLICY (€410mn) in the first quarter, the company Warsaw Stock Exchange on April 29. Year to
said on April 29. date, the company’s shares have grown 18.75%
Moldovan president caps loss of PLN2.24bn in the first quarter of 2020. while adding 13.44% in the past 12 months.
The result marks a changeover from a net
The company’s market cap is PLN29.3bn.
fuel prices The company also more than doubled the
attributable net take versus PLN693mn in the
Moldovan President Maia Sandu has fourth quarter. First cargo from Egypt
promulgated the law on capping the prices Growth in net profit owes to a very good
of petroleum products, adding that the law, EBITDA result of Energa, a power company to reach Lithuanian LNG
which she recommended as necessary, “has Orlen took over in 2020, of PLN800mn, Orlen
weaknesses” in its current form, but will be said. terminal
amended by the new parliament to be formed The company’s sales came in at
after the July 11 general election. PLN24.56bn, growing 11.3% y/y. Pre- The Klaipeda (Lithuania) liquefied natural gas
Following the meeting of the Supreme impairment ebitda lifo – earnings adjusted for (LNG) terminal, operated by KN (Klaipedos
Security Council on February 26, the changing value of inventories – jumped 49% Nafta) expects to receive LNG cargo from
president recommended to parliament the y/y to PLN2.39bn. Egypt, the ‘Idku’ natural gas liquefaction
modification of the legal framework for Revenues grew “despite lower crude oil plant to reach Klaipeda Seaport for the first
capping the prices. throughput and a decrease in sales as well time. The LNG carrier ‘LNG Fukurokuju’
“The need to cap the prices of petroleum as lower fuel consumption caused by the is expected to deliver approx. 138,000 cubic
products by law comes as a result of cartel COVID-19 pandemic,” Orlen said. metres of LNG.
agreements on the oil market and the inaction Broken down by main business segments, After the planned maintenance and
of the Competition Council. The law coming refining posted an EBITDA LIFO of –PLN191 repair works, the LNG terminal, which has
from the parliament is a weak one, it contains on the back of unfavourable macroeconomic successfully resumed operations on May 1st,
confusing provisions, probably introduced conditions, mainly lower margins on middle expects to receive cargo from Egypt on May
there intentionally by some deputies, but I distillates, narrowing Brent/Urals differential, 7th. The LNG carrier ‘LNG Fukurokuju’, built
decided that it is better to sign it as it is and and the zloty appreciating against the dollar, in 2016 and currently sailing under the flag
to come with amendments immediately after Orlen said. of Bahamas, will visit the Klaipeda Seaport
the elections. The next parliament will have The petrochemical segment generated a for the first time and also deliver the first ever
to improve this law and, together with the LIFO-based EBITDA of close to PLN660mn, cargo from Egypt to Lithuania.
government, settle the issues in the sector,” supported by stronger margins on polyolefins, “As the prices of LNG are still high in
Sandu said. fertilisers and PVC, and a depreciation of the Asia, a large part of cargo from Europe is
“The enactment of the law is a signal to zloty against the euro. diverted exactly there by taking advantage
market players, institutions, and politicians The power generation segment of the spot market opportunities, and a
defending the interests of some groups that consolidated with an EBITDA LIFO of just certain new-found niche is filled by Egypt,
unjustified price increases and the illegal under PLN1.1bn – over a twofold increase which has been less visible on the map of
enrichment of some people behind the backs year y/y thanks to the consolidation of the European LNG suppliers so far. What is more,
of many are no longer tolerated. We will subsidiary power company Energa’s results. Egypt announced in January that it would
make order in the state institutions and we The retail segment generated a LIFO-based significantly increase exports to Europe to
will ensure the observance of the rules by EBITDA of PLN 548m for the first quarter meet the growing demand for LNG here.
everyone,” wrote Sandu in a post on Facebook. of 2021 despite a 13% year-on-year drop in Taking into account both the requirements of
sales volumes led by subdued fuel demand Klaipeda LNG terminal equipment and the
DOWNSTREAM attributable to the COVID-19 pandemic, requirements of the Lithuanian natural gas
and year-on-year declines in fuel margins market, the natural gas liquefied in Egypt are
Poland’s state-controlled recorded in Poland and the Czech Republic. suitable for our natural gas system in terms of
In the upstream segment, Orlen delivered a
its calorific and energy value,” says Mindaugas
refiner PKN Orlen grows net LIFO-based EBITDA of PLN14mn, reflecting Navikas, chief sales officer at KN.
According to Mindaugas Navikas, this
mainly the negative impact of hedging
profit in Q1 transactions and a 24% year-on-year drop in natural gas year, after the shutdown of
‘Equinor’ liquefaction plant in Norway,
sales volumes, the company said.
Poland’s state-controlled refiner PKN Orlen Orlen’s stock gained 2.03% to PLN68.52 which plans to resume operations next
posted an attributable net profit of PLN1.86bn towards the end of the day’s trading on the spring, to match their commitments terminal

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