Poland’s largest refiner reports huge loss in 2014

The losses are a result of a writedown of the company’s assets as well as a drop in sales of over PLN 7.06 billion last year on 2013 figures.

Sales in 2014 amounted to PLN 76.97 billion, down from the previous year’s figure of PLN 84.04 billion, in part thanks to a global drop in oil prices and its knock-on effect on Orlen’s products.

Orlen’s board has said that it plans to recover the 2014 loss from the company’s reserve capital fund.

“These [writedowns] did not have a financial effect on the company – which is stable – and is it has been agreed to continue the realisation of Grupa Orlen’s strategy on dividend payouts,” the company announced.

The announcement comes after the the board of PKN Orlen recently agreed to pay out 2014 dividends of PLN 1.65 per share, with the money coming out of a reserve fund comprised of profits from previous years.

“The decision is in line with the strategy laid out by PKN Orlen for 2014-17 which envisages the level of dividend payouts systematically rising on the average share price, guaranteeing a stable return for investors,” a statement from Orlen underlined.

The company is also going ahead with an investment package amounting to PLN 10.8 billion between 2014-17, with modernisation of the company’s installations set at PLN 5.5 billion. (jb)

Source: PAP