PKN PW

Polski Koncern Naftowy ORLEN S.A.

Energy


Presented:09/24/2015
Price:PLN66.85
Cap:$7.63B
Current Price:PLN54.74
Cap:$8.50B

Presented

Date09/24/2015
PricePLN66.85
Market Cap$7.63B
Ent Value$10.03B
P/E Ratio19.72x
Book ValuePLN47.97
Div Yield2.47%
Shares O/S427.71M
Ave Daily Vol1,532,004
Short IntN/A

Current

PricePLN54.74
Market Cap$8.50B
Polski Koncern Naftowy ORLEN SA is a processor of refined crude oil. The company specializes in processing crude oil into unleaded petrol, diesel, heating oil, aviation fuel, plastics, and other petroleum related products. It operates through four segments: Refining, Retail, Petrochemical and Upstream. The Refining segment includes refinery products processing and wholesale, oil production and sale as well as supporting production. The Retail segment includes sales at petrol stations. The Petrochemical segment includes the production and wholesale of petrochemicals and production and sale of chemicals. The Upstream segment provides exploration and extraction of mineral resources. Polski Koncern Naftowy ORLEN was founded on September 7, 1999 and is headquartered in Plock, Poland.

Publicly traded companies mentioned herein: Polski Koncern Naftowy Orlen SA (PKN PW)

Highlights

After monitoring shares of Polish refining company PKN Orlen (PKN) through a period in which the stock rose from 35 Zloty to 85, the presenter is now short and sees the potential for a decline to the 50s based on fundamental headwinds, or even back to the mid-30s if the macroeconomic environment worsens. He sees forthcoming margin pressure as PKN has an unfavorable exposure to diesel fuel production (as opposed to gasoline), and the diesel emissions scandal could reduce demand and shift the cost curve in favor of US refineries. Please note, all figures are in the local currency, unless otherwise indicated.

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Idea Discussion

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