The Paramo company has reported loss for three quarters in a row.
Within three quarters the Paramo company has reported the income before tax, according to the International Financial Reporting Standards (IFSR), amounting to – 41 million Czech crowns.
Pardubice, 13 November 2009 – Compared to the same period last year the financial result had decreased by 17 million CZK. The revenues of the refinery in Pardubice decreased by 36 % to 6.5 billion CZK, mainly due to the decline of oil prices and related commodity products in the first half of 2009. Last year the oil prices ranged from 92 to 132 USD per barrel, however, in the first six months of 2009 it was from 44 to 68 USD per barrel.
For the third quarter of 2009 the Paramo company has reported the loss, according to the International Financial Reporting Standards (IFSR), amounting to 29 million CZK while in the same period last year it reported the profit of 18 million CZ.
The drop in the Paramo financial results was mainly caused by a low refinery margin, which has adversely affected the entire refinery industry. Another limiting factor present throughout this entire year has been the minimum differential on the Russian oil compared to the Brent oil. "The differential for 2009 has been only 0.7 USD/barrel, which is 2 % of the price. The five-year average is 6 % of the price. This effect alone represents for the refinery in Pardubice the loss of 162 million CZK in comparison with 2008," observes the Financial Director of the company, Ms. Lada Hájková.
PARAMO, a.s., a member of the UNIPETROL/PKN ORLEN group, processes crude oil into refinery and asphalt products and produces lubricating and process oils, including follow-up and auxiliary products,. The refinery also purchases and processes oil hydrogenates and hydrocrackates. The intermediate products are used by the refinery to produce base and lubricating oils with very low sulfur contents. The company employs 700 people.
PARAMO, a. s.
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