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PKN Orlen plans to take over utility Energa

December 09/2019

MOSCOW (MRC) -- PKN Orlen announced that it plans to take over state utility Energa to strengthen its position in the electricity market, said Reuters.

Orlen has announced that it aims to acquire 100% of Energa with a bid that puts the companys value at around Polish zloty (Zl) 2.9bn (USD749.9m) at Zl 7 per share.

Orlen said that its energy segment, which has 1.9 GWe of installed capacity and is the fourth largest producer of electricity in Poland, already accounts for nearly 15% of its earnings before interest, tax, depreciation and amortisation (EBITDA).

Both PKN and Energa have heavy and politically-motivated investment projects in their pipelines. PKN, which has a market capitalization of 37 billion zlotys, also wants to take over smaller rival Lotos, with a market cap of almost 16 billion zlotys, a move encouraged by some prominent members of the ruling Law and Justice (PiS) party.

Orlen is also in the midst of a bid for the countrys second largest refiner, state-controlled Lotos. In August, the European Commission said it opened an in-depth anti-trust investigation to assess the proposed acquisition of Lotos by Orlen.

As MRC reported earlier, in September 2019, Honeywell announced that PKN ORLEN had licensed the UOP MaxEne process, which can increase production of ethylene and aromatics and improve the flexibility of gasoline production.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polyprolypele (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,724,670 tonnes in the first ten months of 2019, up by 7% year on year. Shipments of all PE grades increased. The estimated PP consumption in the Russian market in January-October 2019 totalled 1,066,520 tonnes, up by 7% year on year. Supply of block copolymers of propylene (PP block copolymer) and homopolymer of propylene (homopolymer PP) increased, demand for statistical copolymers (PP random copolymer) decreased.
Author:Anna Larionova
Tags:PP, propylene, petrochemistry, Grupa Lotos SA, PKN Orlen.
Category:General News
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