Poland’s largest oil refiner PKN Orlen’s Q1-09 earnings are estimated to be hit by a decline of US$88 mln in the value of oil inventories as well as narrower margins on petrochemical products. Oil stored in Orlen’s tanks devalued in Q1, reducing earnings by 300 mln zloty (US$88 mln) as compared to a gain of 326 mln zloty in the same period last year. The company reported a Q4-2008 net loss of 3.05 bln zloty and its first ever annual loss due to a record decline in the price of crude oil that cut the value of its reserves and rising cost of debt.
Profit from production of polyolefins and olefins declined and volumes of petrochemical product sales dropped 2% to 1.26 million tons.
PKN Orlen is scheduled to report full first-quarter earnings on May 14.