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PKN Orlen petchem earnings, volumes stable

October 30/2020

MOSCOW (MRC) -- Refining and energy group PKN Orlen (Plock, Poland), the countrys largest petrochemicals producer, says its petchems business delivered EBITDA in the third quarter flat with last year's equivalent period at 502 million zloty (USD123 million), said Chemweek.

Sales volumes were flat year on year (YOY) at 1.3 million metric tons, with sales in Poland rising 7% on higher olefins, fertilizers, and polyvinyl chloride (PVC) sales, while sales in Lithuania grew 110% YOY driven by an expanded market share, it says.

Sales declined 16% YOY in the Czech Republic, due mainly to the slump in demand from the automotive and construction sectors, and the effect of maintenance shutdowns, it adds.

The company says its 270,000-metric tons/year PE3 polyethylene unit in Litvinov, Czech Republic, also reached full capacity during the quarter after commissioning earlier this year.

"Refining margins may be under pressure until global production capacity is reduced by around 3 million b/d, which may take several quarters, according to PKN Orlen. Permanent restructuring of the refining industry seems to be inevitable, and biofuels and integration with petrochemicals should gain in importance," it says.

We remind that in H1 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. The project, for the PKN Orlen facility in Plock, Poland, currently is in the basic engineering stage.

Ethylene is the main feedstock for the production of polyethylene (PE).

According to MRC"s ScanPlast report, Russia's estimated PE consumption totalled 1,496,500 tonnes in the first eight months of 2020, up by 5% year on year. Shipments of all ethylene polymers increased, except for linear low desnity polyethylene (LLDPE).

PKN Orlen would be the first refining and petrochemicals company in Europe to use the Honeywell UOP MaxEne technology for molecule management of a naphtha stream to produce high-quality products including olefins, aromatics and gasoline.
Author:Anna Larionova
Tags:petroleum products, PP, PE, ethylene, propylene, neftegaz, petrochemistry, PKN Orlen.
Category:General News
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