Polish refiner Orlen Q3 net profit at 188 mln zlotys, takes 3.53 billion writedown
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Nov 13 (Reuters) -Polish oil refiner Orlen's PKN.WA third-quarter net profit was sharply down to 188 million zlotys ($45.7 million) amid writedowns and tumbling refining margins, which hit core business, the company said on Wednesday.
The company's EBITDA LIFO, excluding writedowns, came in at 8.81 billion zlotys and the EBITDA at 4.96 billion zlotys, broadly in line with estimates given by the company on Nov. 5 when it said it booked 3.53 billion zlotys in writedowns related to its Orlen Lietuva and petrochemical segments.
The group's revenue in the third quarter was 67.94 billion zlotys.
Unfavourable market and macroeconomic conditions negatively impacted the refiner's petrochemicals business which recorded an EBITDA LIFO (earnings before depreciation and amortisation, net of the effect of crude price movements on the value of inventories) loss of 118 million zlotys, the company said.
On the refining side, the third-quarter EBITDA LIFO profit fell by 72% to 520 million zlotys due to lower volumes, declining refining margins and a stronger Polish zloty against the U.S. dollar.
The upstream segment saw a quarterly EBITDA LIFO profit of 3.31 billion zlotys compared with a loss of 211 million zlotys a year ago, when the result was hit by a windfall tax of 3.0 billion zlotys.
The company said capital expenditures reached 20.8 billion zlotys in the first nine months of the year and that it further cut the full-year spending plan by 2.3 billion zlotys to around 33 billion zlotys.
"This is approximately 5 billion zlotys less than estimated at the beginning of the year. We focus on the most promising investments that will contribute to the growth of the group's value", Orlen's Chief Financial Officer was quoted as saying in a press release.
($1 = 4.1106 zlotys)
Reporting by Tymon Miller, Marek Strzelecki and Anna Koper; Editing by Jane Merriman and Jonathan Oatis
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