OREANDA-NEWS. May 13, 2010. Low refining margins, Euro drop against the US dollar as well as Refinery shut down for maintenance had a negative impact on the Company’s financial results for the beginning of the year. Due to the increase of the refining volumes, the revenues of AB ORLEN Lietuva Group for the first quarter of this year were by USD 222 million higher than during the same period of 2009. Nevertheless, unfavorable macroeconomic and market conditions caused USD 14.3 million operating loss incurred by the Company (EBIT was negative).  

During the first quarter of 2010, the volume of feedstock refined by AB ORLEN Lietuva amounted to 1.79 million tons, including 1.71 million tons of crude. The volume of feedstock refined by the Company was by 19.7 percent less in comparison with the 4th quarter (2.23 million tons of feedstock) and 11.8 percent less than during the 1st quarter of 2009 (2.03 million tons).

Revenues of AB ORLEN Lietuva for the first quarter of 2010 reached USD 1072.5 million, and were by USD 222.5 million higher than for the same period last year (USD 850 million). Nonetheless, the consolidated net loss of the Group for the first three months of 2010 amounted to USD 28.2 million.

From the beginning of the year the Company was reducing its operating costs in all business segments and implementing the restructuring plan, with the manpower reduction being one of the business optimization measures (76 employees). Fixed costs of the Company reduced by approx. USD 3 million in comparison with the same period last year.

To ensure safe and continuous production process, high quality of the products and higher efficiency, the Company continued modernization activities. In two weeks of the March shutdown the Company completed the complex maintenance of its process units. Operating profit of the Company decreased by USD 12.3 million due to the shutdown.  

Ireneusz F№fara, General Director of ORLEN Lietuva, in evaluation of the Company’s performance results for the first quarter of the year, told that decrease of refining margins and Euro drop against the US dollar had the material impact on the Company’s results.

“Despite of the market tendencies and the loss incurred during the 1st quarter of 2010, ORLEN Lietuva managed to retain its position on majority of its key markets. Moreover, taking into consideration the existing macroeconomic conditions the Company results are extremely impacted by non-optimal logistics-related decisions undermining the Company’s competitiveness”, said Ireneusz Fafara, General Director of AB ORLEN Lietuva.