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2007 was the first year of the functioning of wholesale trade structures following the restructuring process completed in 2006. One of the consequences of the implemented changes was the transfer of CODO (company-owned; dealer-operated), DOFO (dealer-owned – dealer-operated) and DODO (dealer – owned; dealer – operated) channels to the retail segment.
In 2007, the fuel sales generated by the Polish wholesale segment companies, including export, totalled 6,342 thousand tonnes, approximately 7.8 percent more than in the preceding year. In the report period, PKN ORLEN sold 6,111 thousand tonnes of fuels in Poland, an increase by nearly 10 percent as compared to 2006. As at the end of 2007, the Company’s share of the domestic wholesale fuel market went up by 3.9 percent in comparison to 2006, to 58.3 percent. In accordance with the updated strategy for 2007–2012, ORLEN Group expects to control a share of 65 percent in the fuel wholesale market in Poland and a 75 percent share in the wholesale fuel market in the Baltic states until 2012.
Fuel consumption in Poland in 2007 (’000 tonnes)
| Fuels | 2006 | 2007 | Dynamics |
|---|---|---|---|
| Petrol | 4 069 | 4 138 | 1,70% |
| Diesel oils | 8 380 | 9 521 | 13,60%% |
| Light heating oil | 1 945 | 1 346 | -30,80% |
| LPG | 1 810 | 1 830 | 1,10% |
| Total | 16 204 | 16 835 | 3,40% |
Source: 2006 Nafta Polska SA, Agencja Rynku Energii SA, POGP; 2007: Agencja Rynku Energii SA, POGP.
Fuel import to Poland in 2006–2007 (’000 tonnes)
| Fuels | 2006 | 2007 | Dynamics |
|---|---|---|---|
| Petrol | 603 | 749 | 24% |
| Diesel oil | 2 286 | 2 897 | 27% |
| Light heating oil | 42 | 14 | -33% |
| Total | 2 931 | 3 660 | 25% |
Sources of fuel imports to Poland in 2007
| Country | Petrol | Diesel | Light heating oil |
|---|---|---|---|
| Germany | 58% | 37% | 69% |
| Slovakia | 33% | 10% | not applicable |
| The Czech Republic | 6% | not applicable | not applicable |
| Belarus | not applicable | 13% | not applicable |
| Lithuania | not applicable | 7% | 31% |
| Great Britain | not applicable | 15% | not applicable |
| Finland | not applicable | 8% | not applicable |
| Other | 3% | 10% | not applicable |
Engine Fuels
2007 was a year of dynamic increase in the wholesale sale of petrol and diesel oils in Poland. The generated result was, above all, affected by higher than planned consumption of the aforementioned fuels in Poland, thanks to which the Company acquired new customers and contracted higher volumes for international fuel companies.
Heating Oils
Falling sales of light heating oil resulted mainly from limitations in production (HON VI installation overhaul) and from corporate customers switching to alternative energy sources a drop in the use of heating oil for internal combustion engines resulting from the requirement to present invoices for diesel oil in order to obtain agricultural subsidies also affected the market structure.
Aviation fuels
Intensifi cation of traffic at domestic airports, and the resulting increase in JET A-1 fuel consumption was one of the reasons for the discontinuation of aviation fuel exports by PKN ORLEN in 2007. Total sales of this fuel in 2007 generated by PKN ORLEN and Petrolot totalled 408 thousand tonnes,15.6 percent higher than in 2006.
In 2007, total fuel imported by Poland increased on average by 25 percent. The key exporters were once again Germany, Slovakia and Lithuania.
Fuel sales by the Polish wholesale segment companies in 2006–2007 (’000 tonnes)
| Fuels | 2006 | 2007 | Dynamics |
|---|---|---|---|
| Petrol | 1 406 | 1 550 | 10,20% |
| Diesel oil | 2 857 | 3 441 | 20,50% |
| Light heating oil | 1 266 | 943 | -25,50% |
| JET A-1* | 353 | 408 | 15,60% |
| Total | 5 882 | 6 342 | 7,80% |
* Domestic sales only Fuel sales by the Polish wholesale segment companies in 2006–2007 (’000 tonnes)
Non-fuel Products
In 2007, the total wholesale sale of non-fuel products generated by the Polish wholesale segment companies amounted to 2,684.5 thousand tonnes, with domestic sales of 1,698.5 thousand tonnes of products and 986 thousand tonnes of export sales, and was 17.1 percent higher than in 2006.
In 2007, sales of liquefied gas to external customers by PKN ORLEN, ORLEN Gas and ROR totalled 232 thousand tonnes and were 52.7 percent higher in comparison with the sales generated by the aforementioned entities in 2006. In the report period, the sales of III heating oil generated by the Polish companies amounted to 968.7 thousand tonnes and were 31.7 percent higher than in 2006.
The increase in the dynamics of sales of non-fuel products in 2007 is attributable mainly to the continued boom in the market for heavy heating oil and sulphur. The generated result was also infl uenced by increased capacity of the Olefin installation and, as a consequence, by greater supply of key petrochemical products.
Wholesale of selected non-fuel products by the Polish segment companies in 2006–2007 (’000 tonnes)
| Fuels | 2006 | 2007 | Dynamics |
|---|---|---|---|
| Heating oil III | 735,5 | 968,7 | 31,70% |
| P fractions | 333,5 | 300,2 | -10,00% |
| Sulphur | 115,6 | 119,6 | 3,50% |
| Orther refinery products | 100,8 | 239,8 | 137,80% |
| Liquefied gas | 151,9 | 232 | 52,70% |
| Ethylene | 151,9 | 232 | 52,70% |
| Propylene | 61,1 | 14,3 | -76,60% |
| Benzene | 115,4 | 112,8 | -2,30% |
| Glycols | 111,2 | 101,8 | -8,40% |
| Toluene | 117,7 | 120,4 | 2,30% |
| Paraxylene | 29,6 | 31,8 | 7,20% |
| Ortoxylene | 20,2 | 26,2 | 29,90% |
| Butadiene | 62,2 | 59,7 | -3,90% |
| Other petrochemical products | 213,1 | 222,1 | 4,30% |
| Total non-fuel products | 2 291,60 | 2 684,50 | 17,10% |
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