The company’s retail segment generated sales of PLN108 million; 18 times higher than the figure posted in Q1 2006. This was as a result of growing sales volumes, which generated an additional PLN44 million, and margins on non-fuel products, which generated PLN8 million.
The higher sales volumes were also generated in the refining and petrochemical segments of PKN Orlen, which reported growth of 4.8% and 7.6%, respectively.
The group’s Q1 2007 operating profit was PLN375 million, 10.1% less than Q1 2006. This was impacted by an operating loss of PLN334 million incurred by the Mazeikiu group, which was due to, among other factors, the fire that broke out in October 2006.
Additionally, as a result of the overestimation of CO2 emission rights in the Mazeikiu Nafta Capital group, PKN Orlen incurred a one-off negative effect of PLN63 million on its operating result. The group’s results were also impacted by the consolidation of its Mazeikiu Nafta oil refinery in Lithuania.
PKN Orlen added that, in Q1 2007, crude prices were approximately 7% lower compared to the first quarter of 2006, which had a particularly large impact on the company’s results in January and February 2007.
Nevertheless, PKN Orlen said that the group’s Optima program brought in savings of PLN88 million in Q1 2007. The cost reduction program’s results were 63% better than in the first quarter of 2006 and were particularly successful in the group’s refining and chemical segments.
