PKN takes 2Q hit on foreign assets.

摘要

Poland's biggest oil company reported a net loss of 5.2B PLN ($1.7B) in 2Q 2014, surprising analysts, who had expected profits of about 353MM PLN ($114.9MM), with substantial write-downs of assets in the Czech Republic and especially Lithuania totaling 4.9B PLN ($1.6B). PKN Orlen wrote down the value of its Czech Unipetrol subsidiary, of which it owns 63, by 711MM PLN ($231.4MM), and of its Lithuanian unit Lietuva by a whopping 4.2B PLN ($1.4B). "I'm surprised that the management has kept the value of Lietuva at such a high level for so long and only now decided to write it down," said Erste Group Bank analyst Tamas Pletser. "It's a cash-burning asset with negative Ebitda." Wood Co. analyst Robert Rethy agreed, noting that considering recent talk about the Lietuva unit's difficulties, "the write-offs are probably less of a surprise, but the size of the impairments did come as a surprise."