Poland' No 1 refiners report declines in Q2 net income

02-Sep-09

A 33% drop in Q2 net income hit by reduced refinery output and margins impacted by the global economic crisis has been reported by Poland's largest oil refiner PKN Orlen SA. Net income fell to 1.17 bln zloty (US$410 mln) from 1.74 bln zloty a year ago. Poor-quality earnings at Orlen were brightened up by the best-ever quarterly operating cash flow, and currency gains and a dividend from a mobile-phone operator that lifted the bottom line well above market estimates. Refining measured in dollars per barrel contracted 34% from a year ago levels, while petrochemical margins, measured in euros per ton dipped by 22% from a year earlier, while the company refined 11% less oil. The zloty strengthened 11% against the dollar on June 30 from the end of the first quarter, decreasing the value of foreign-currency debt and helping Orlen reach a financial profit of 580.9 million zloty.