After experiencing a difficult business environment in its first quarter, Polish oil and fuels company PKN Orlens has reported a healthy recovery in a stronger second quarter environment, highlighted by a doubling of net profit over the previous quarter.
Citing a significant improvement in refining margins and higher fuel sales, PKN achieved earnings before considerations of PLN1.3 billion, an improvement of nearly 110% on the corresponding period of 2005. Revenue for Q2 2006 was PLN13.5 billion.
Net profit fell in comparison to Q2 2005, however this was due to the PLN2 billion goodwill write-off a year ago after the acquisition of Czech peer Unipetrol, Reuters say.
Retail fuel sales volumes increased during the quarter by 11% in Poland and almost 16% across the Orlen Group. Despite higher crude oil prices squeezing margins, the high volumes offset their effect so that net profits for the company’s Bliska division came in at PLN17 million in the second quarter. Orlen Deutschland, operating a smaller number of service stations, reported a net profit of approximately PLN14 million.