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“Strict macroeconomic environmental conditions and the worldwide COVID-19 pandemic had a significant impact on ORLEN Lietuva’s results for the first quarter of this year,” the company said.
In the first quarter of 2020, compared to the same period last year, ORLEN Lietuva’s revenues decreased by 30%.
This year’s operating loss before interest, taxes, depreciation and amortization (EBITDA) under the LIFO methodology was also record, reaching 190 million. US Dollar (In the first quarter of 2019, the Group’s EBITDA according to the LIFO methodology was USD 54 million).
These results, according to the company, were determined by the sharp drop in world prices for crude oil and its products and the reduction of inventories to their net realizable value.
Due to the spread of the coronavirus (COVID-19) and applicable quarantine or emergency restrictions, fuel consumption has decreased in many ORLEN Lietuva markets, the company notes.
Thus, the total volume of sales of manufactured products during 2020. In the first quarter, compared to the same period in 2019, it contracted by 17 percent. 34 percentage points less of production by sea and 4 percent were sold. – on land, where the decrease in sales in the Baltic States was partially offset by the increase in sales in the CIS countries and other continental markets.
“The sharp drop in prices for oil and petroleum products has strongly affected the entire European refining sector.” The industry is under great competitive pressure due to lower demand and perceived excess capacity, “said Michalas Rudnickis, General Manager of AB Orlen Lietuva.
“Unfavorable macroeconomic conditions may continue, therefore, in the coming months, ORLEN Lietuva will focus on finding and implementing solutions that can contribute to improving the financial situation during this stressful period,” the report said.
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