For the 2nd quarter of 2023, ORLEN Lietuva Group has recorded:
- USD 1.670 billion of revenue;
- USD 56.2 million EBITDA LIFO;
- USD 46.0 million net profit;
- 38 percent increase in sales to inland markets, and 62 percent increase of seaborne sales in comparison to the same period last year;
- 89 percent refinery capacity utilization.
Total revenues of the Company for April-June 2023 reached USD 1.670 billion, in comparison to the slightly higher revenues of the same period in 2022 that amounted to USD 1.704 billion. Net profit for Q2 was USD 46.0 million, with EBITDA LIFO reaching USD 56.2 million. Both of these financial indicators, compared with Q2 of the previous year, are more than 5 times higher, with this result driven by the increased processing volume and the recovery in sales to Ukraine.
Comparison of the second quarter of 2023 and the same period of 2022 shows even 62 percent growth of seaborne sales, and 38 percent growth of sales to inland markets. The Ukrainian market recovery is observed, where increase in the product sales is three times higher than during the same quarter last year; furthermore, product export to Poland and other countries (mainly, Scandinavian) have also tripled. Growth of product sales to Latvia was 12 percent, whereas sales of all products on the local Lithuanian market increased by 23 percent.
Capacity utilization of the only crude oil refinery in the Baltic States during Q2 2023 was c. 89 percent, processing over 2.3 million tons of feedstock. Comparison of the same quarters of 2022 and 2023 demonstrates significant improvement in the results, since the refinery’ process units were shut down for turnaround in Q2 of the last year with the refinery operating at half of the capacity.
‘Progressive company, professional team, innovative work approaches, and a common pursuit of strengthening the national economy growth and energy independence have made it possible for us to share the satisfaction with the result’, said Michal Rudnicki, General Director of ORLEN Lietuva, while commenting on the results of the 2nd quarter. ‘Excellent performance indicators in production, sales area as well as financial indicators. The largest cargo in Lithuanian history has reached its destination, i.e. the construction site of new Residue Conversion Unit. Challenges can only be met by those who are motivated’.
The construction of new Residue Conversion Unit (RHCU) started in August 2022. After a year, the biggest Polish capital investment in Lithuania is gaining its momentum. At the beginning of August 2023 a reactor, the key component of the hydrocracking unit, has arrived at the port of Klaipeda and was successfully transported to ORLEN Group’s refinery in Mažeikiai region. The project is slated for completion until 2025 and will add as much as about EUR 68 million to annual EBITDA. This will be achieved by increasing the yield of high-margin products by even 12 %, to the level of 84 %, from less than 72 % today. Currently, in order to produce the expected fuels volume, ORLEN Lietuva processes up to 10 million tonnes of crude oil per year. Once the hydrocracking unit is put in operation, it will be possible to obtain a similar volume of fuels with the processing of 8 million tonnes of crude oil per year.
Since 2006, ORLEN has spent nearly USD 4 billion on the acquisition and further investments in the refinery of Mažeikiai. ORLEN Lietuva has recently become a member of an integrated petrochemical chain of ORLEN.
ORLEN is a modern player on the fuel and power market, and the largest company in Central and Eastern Europe listed in the prestigious Fortune Global 500.
ORLEN Lietuva inf.