Warsaw Business Journal: Orlen to sell its Lithuanian refinery?

Poland’s largest oil company, PKN Orlen does not exclude selling its refinery in Lithuanian Mazeikiai refinery. The facility has been losing money for years and Orlen doesn’t expect the situation to change in the near future. Marek Podstawa, member of the Orlen’s management board, told in Polish Parliament that his company is analyzing several options regarding the future of the refinery including shutting it down.

According to Podstawa, the refinery has been profitable only once after it was bought in Orlen. In 2012, the company earned $80 million. Polish oil giant bought the Mazeikai facility in 2006 for $2.34 billion which at the time was the biggest Polish foreign investment. Up to this year, the refinery lost $26 million.

Polish owners are putting the blame on the Lithuanian government. Local, state-owned railway operator has been charging Orlen 150 percent more than what it has to pay in Poland. The latest round of talks regarding lowering the fair for using local tracks have collapsed.
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