PKN Orlen to decide fate of its Lithuanian refinery this month
July 15, 2014
Fuel group PKN Orlen will present its plans regarding the ailing Lithuanian refinery Orlen Lietuva in Mazeikiai by the end of July, according to the information of the daily Puls Biznesu.
PKN Orlen should close its Lithuanian refinery as it is a burden on the group's results and has a negative impact on the group's valuation, DM mBanku analyst Kamil Kliszcz told the daily Puls Biznesu.
A potential impairment for the loss-making unit would not surprise the market, but the company needs to take some "decisive" steps, Kliszcz said. Even if the refining market improves, as expected, Mazeikiu will not achieve any significant profits, he added.