Oil

Production
The production of ORLEN Oil Sp. z o.o. in 2007 totalled nearly 325 thousand tonnes and was over 26.9 tonnes lower than its total production in 2006. The highest decrease, resulting from weak demand, was reported by the Company in the segment of operating fluids and automobile cosmetics. The smaller than expected production of base oils resulted, in turn, from the overhaul of the oil block and an unplanned stoppage in DRW II in September 2007.

 

  

 

 

Production volume in ORLEN Oil Sp. z o.o. in 2006–2007 (tonnes)

	2006	2007	Dynamics
Lubricants and base oils	150 531	150 632	0,07%
Other products	201 203	174 149	-13,45%
Total	351 734	324 781	-7,66%

Sales
In 2007, the Company sold nearly 3 percent more lubricants than in the preceding year, reaching the level of  over 75.8 thousand tonnes of products sold. A very good result was generated by ORLEN Oil in the area of  Platinum oils, whose total sales increased by 21 percent in 2007. Such results were generated by ORLEN Oils mainly due to effective sales in the growing domestic market for new passenger cars and delivery wehicles. An additional element that triggered the increase was the commencement of sales of industrial oils in the German market. Nevertheless, the Company sold fewer base oils due to the limited production.

At the end of 2007, the share of ORLEN Oil in the domestic market for lubricants was 25 percent, however, in the area of automobile industry oils it amounted to 26 percent, and in the area of industry oils it was 24 percent.

The Company’s exports in 2007 were maintained at a level similar to that in 2006 and totalled over 81 thousand tonnes. The products of ORLEN Oil were provided to customers in Greece, the Netherlands, Great Britain, France and neighbouring countries.

 ORLEN Group oil segment sales volumes in 2006–2007 (tonnes)

	2006	2007	Dynamics
Lubricants and base oils	151 658	150 826	-0,55%
Other products	200 527	176 243	-12,11%
Total	352 185	327 069	-7,13%

Investments
The investment plan for 2007 assumed further development of ORLEN Oil. The tasks planned were of both a replacement and a development nature. The main capital expenditure related to production activities and logistics, and was intended to strengthen the commercial offer of the highest quality products and simultaneously enhance the standard of customer service.

In 2007, ORLEN Oil, as one of the leading oil companies in Poland, introduced oils for engines meeting the Euro4 requirements to its product range. Such oils meet the most rigorous quality specifi cations of automobile manufacturers and the requirements of the ACEA 2004 classification.

The Company’s most important investments in 2007 included: purchase of the Oils and Lubricants organisational unit from Rafineria Nafty Jedlicze SA, commencement of the construction of the filling terminal for road tankers in Płock and start-up of container stock in the production plant in Trzebinia with total capacity of 300 m³. The total value of capital expenditure incurred in 2007 amounted to over PLN 56 million.