Energy, EU – Baltic States, Investments, Lithuania, Oil, Transport

The state-controlled company said its operating profit would reach about 100 million zlotys (30.2 million dollars) compared to 747 million in the same period of last year and 742 million expected by analysts in a Reuters poll.

PKN said it would take impairment charges on its Czech and Lithuanian assets totaling some 600 million zlotys.

PKN bought refiners in the neighboring countries to become one of Eastern Europe's top refiners and prevent Russia from expanding its position in the region, but the purchases proved to be troublesome.

The Lithuanian Mazeikiu refinery has fallen victim to disruptions in oil supplies, while the Czech assets have suffered from outdated facilities.

PKN's Czech arm Unipetrol also warned that impairment charges would push it to an operating loss in the fourth quarter. The company said its crude oil throughput fell 5% in the last three months of the year because of shutdowns at Unipetrol and reduced production at Mazeikiu.

PKN will release its official results on February 9, 2012.

As reported, PKN Orlen has suspended plans to sell its 200,000 b/d Lithuanian refinery, Orlen Lietuva, due to adverse business conditions.

PKN first confirmed it wanted to sell off all or part of the refinery in February last year.