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Recommend to a friendIn 2009 ORLEN Group continued the wholesale of fuel and non-fuel products on the territory of Poland, the Czech Republic, Germany, Slovakia and Lithuania. The Group’s wholesale segment consisted of PKN ORLEN wholesale units, 5 Regional Market Operators, Petrolot, ORLEN Gaz (Poland), Uniraf Slovakia (Slovakia), Unipetrol BUI (the Czech Republic), ORLEN Lietuva (Lithuania, Ukraine, Poland, sea sales).
The total volume of fuel sold by ORLEN Group in 2009 was appr. 6% (i.e. 1.0 mn tonnes) less than in the previous year. More than half of our fuel sales was generated by diesel fuel, whose sales, however, dropped by 5% compared to 2008.
The high dynamics of fuel sales in Poland was possible mainly due to higher sales volume in the key customer group comprising Polish and international corporations. Fuel sales were also enhanced by promotions offered at storage facilities, i.e. reduced SPOT prices on selected products.
The lower volume of sales was mainly due to lower fuel consumption, whose dynamics was -16% in Lithuania and -4% in the Czech Republic. Despite negative market conditions, the drop in sales that the Group reported (-12% in Lithuania and -2% in the Czech Republic) was above the average market tendencies in the respective countries.
Apart from local customers (in Poland, the Czech Republic, Slovakia, Germany, Baltic States), ORLEN Group sold its fuel also to Ukraine, Nigeria, Moldova and UK.
ORLEN Group fuel sales volume on local markets (1,000 tonnes)
| 2008 | 2009 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Polish companies | Czech companies | Lithuanian companies | Other* | Total | Polish companies | Czech companies | Lithuanian companies | Other* | Total | Dynamics | |
| Petrol | 1 624 | 545 | 2 801 | 195 | 5 165 | 1 714 | 542 | 2 770 | 186 | 5 212 | 1% |
| Diesel fuel | 3 943 | 1 088 | 3 160 | 370 | 8 561 | 4 017 | 1 066 | 2 669 | 344 | 8 096 | -5% |
| Light heating oil | 921 | 25 | 8 | 286 | 1 240 | 807 | 22 | 7 | 268 | 1 103 | -11% |
| JET A-1 | 482 | 88 | 480 | – | 1 050 | 293 | 75 | 227 | – | 595 | -43% |
| LPG | 263 | 98 | 187 | – | 548 | 209 | 94 | 131 | – | 434 | -21% |
| Total | 6 970 | 1 746 | 6 448 | 851 | 16 015 | 6 830 | 1 705 | 5 673 | 798 | 15 005 | -6% |
* Wholesale volume in Slovakia and Germany.
ORLEN Group share in local fuel sales markets in 2008–2009
| 2008 | 2009 | Dynamics | |
|---|---|---|---|
| PKN ORLEN* - Poland | 61,60% | 61,90% | 0,30 p.p. |
| Unipetrol** - The Czech Republic | 30,90% | 31,40% | 0,50 p.p. |
| ORLEN Lietuva** - Lithuania | 89,10% | 90,30% | 1,20 p.p. |
* Share in wholesale and retail sales of petrol, diesel and light heating oil.
** Share in wholesale and retail sales of petrol, diesel and JET A-1.
Total wholesale volume of non-fuel products by ORLEN Group in 2009 amounted to 5,674,000 tonnes, i.e. 7% less than in 2008.
The main consumers of petrochemical products offered by PKN ORLEN were the manufacturers of: plastics (PE, PP, PVC, PET), synthetic rubber, ethoxylates (used in the production of surface active agents) and polyols, TDI (used in the production of polyurethanes), caprolactam, Bisphenol A, phenolic resins, coolants, phthalic anhydride and artificial fertilisers. The largest share in the customer structure was held by plastic manufacturers.
The first quarter of 2009 was still affected by the global crisis which started in the last quarter of 2008. Deepening recession in the automotive and construction industries strongly affected the market for all types of plastic (polyethylene, polypropylene, PVC, polystyrene, polyurethanes). In a very short period of time, petrochemical product quotes showed record price drops – by as much as 60%, and limitations in the processing of petrochemicals (due to reduced loads or temporary shut-downs of installations) inevitably affected sales volumes in 2009 in terms of both quantity and quality.
The demand for the respective petrochemical products resumed a slightly upward trend in the second quarter of 2009. After a major price slump in the first quarter of 2009, contractual quotes on most petrochemical products have been on the rise again. However, manufacturers remained vigilant of the changing market demand and adjusted their production capacities accordingly. One of their priorities was to minimise stock levels. We adapted the manufacture and sales of petrochemicals to the new market situation while maintaining cooperation with our key partners.
Non-fuel sales by ORLEN Group in 2008–2009 (‘000 tonnes)
| 2008 | 2009 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Polish companies | Czech companies | Lithuanian companies | Total | Growth/ Fall |
Polish companies | Czech companies | Lithuanian companies | Total | Growth/ Fall |
|
| Heating oil III | 961 | 146 | 1 798 | 2 905 | 29% | 930 | 85 | 1 466 | 2 482 | -15% |
| P fractions | 338 | – | - | 338 | 13% | 315 | - | - | 315 | -7% |
| Sulphur | 130 | 34 | 76 | 241 | 26% | 135 | 31 | 70 | 236 | -2% |
| Refinery | 60 | 232 | 178 | 470 | -23% | 70 | 375 | 169 | 614 | 31% |
| Ethylene | - | 153 | - | 153 | -1% | - | 143 | - | 143 | -6% |
| Propylene | 6 | 27 | - | 33 | -32%4 | 14 | 36 | - | 50 | 54% |
| Benzene | 95 | 179 | - | 274 | -1% | 83 | 182 | - | 265 | -3% |
| Glycols | 88 | - | - | 88 | -14% | 84 | - | - | 84 | -4% |
| Toluene | 103 | - | - | 103 | -14% | 91 | - | - | 91 | -11% |
| Paraxylene | 25 | - | - | 25 | -22% | 1 | - | - | 1 | -97% |
| Orthoxylene | 21 | - | - | 21 | -19% | 21 | - | - | 21 | -1% |
| Butadiene | 55 | - | - | 55 | -7% | 57 | - | - | 57 | 2% |
| C fractions | - | 211 | - | 211 | 24% | - | 168 | - | 168 | -20% |
| Polyolefins | - | 482 | - | 482 | 21% | - | 500 | - | 500 | 4% |
| Ammonia | - | 195 | - | 195 | 11% | - | 234 | - | 234 | 20% |
| OXO alcohols | - | 56 | - | 56 | 4% | - | 18 | - | 18 | -68% |
| Industrial oil | - | 21 | - | 21 | -27% | - | 18 | - | 18 | -12% |
| Petrochemical | 186 | 225 | - | 411 | -6% | 186 | 192 | - | 378 | -8% |
| Total nonfuel | 2 069 | 1 960 | 2 052 | 6 080 | 12% | 1 987 | 1 982 | 1 705 | 5 674 | -7% |
Non-fuel product export markets in 2009 (%)
Sales of the main petrochemical products in 2009 (%)
| Ethylene | Propylene | Benzene | Oxo | Ammonia | Carbamide | HDPE | PP | |
|---|---|---|---|---|---|---|---|---|
| Domestric sales | 84 | 60 | 97 | 51 | 96 | 49 | 25 | 57 |
| Export | 16 | 40 | 3 | 49 | 4 | 51 | 75 | 43 |
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