WARSAW, Feb 4 - Poland's biggest refiner PKN Orlen PKNA.WA expects to post a loss for the fourth quarter and all of 2008 due to a sharp depreciation in the zloty and sees a big charge related to its oil reserves, it said late on Tuesday.
The state-controlled company said the drastic drop in oil prices in the last three months of last year will force PKN to cut the book value of its stored oil, chopping 2.5 billion zlotys ($708 million) from its bottom line.
Financial costs related to the falling Polish zloty could reach 1.5 billion zlotys in the fourth quarter alone, PKN said in a statement.
But thanks to better refining margins, PKN expects its operating result in the fourth quarter to be higher than the average for the first three quarters of 620 million zlotys.
The head of PKN warned last month that oil companies would lose all of the year's paper gains on reserves in the last three months of 2008 because of collapsing oil prices, which peaked at $140 per barrel but are now trading near $40.
The company is scheduled to report full-year results on Feb. 26.
In the fourth quarter of 2007, PKN posted an operating profit of 120 million zlotys and net profit of 601 million.
The state-controlled company said the drastic drop in oil prices in the last three months of last year will force PKN to cut the book value of its stored oil, chopping 2.5 billion zlotys ($708 million) from its bottom line.
Financial costs related to the falling Polish zloty could reach 1.5 billion zlotys in the fourth quarter alone, PKN said in a statement.
But thanks to better refining margins, PKN expects its operating result in the fourth quarter to be higher than the average for the first three quarters of 620 million zlotys.
The head of PKN warned last month that oil companies would lose all of the year's paper gains on reserves in the last three months of 2008 because of collapsing oil prices, which peaked at $140 per barrel but are now trading near $40.
The company is scheduled to report full-year results on Feb. 26.
In the fourth quarter of 2007, PKN posted an operating profit of 120 million zlotys and net profit of 601 million.
