PKN Orlen faces 40% lower profit in the wake of falling fuel demand

Analysts are predicting that fuel giant PKN Orlen will record a net profit t his year of less than zl.500 million, down some 40% from the figure for 2000 . Parkiet quotes the analysts, who are all from leading banks, as saying the reduction can be attributed to falling fuel demand resulting from the low ra te of GDP growth. The forecasts would have been even more gloomy, were it no t for some recent successful investments by PKN Orlen, and the high level of its refineries' margins. Predictions for the company's profits in 2002 vary greatly, depending largely on the assessment of the possible effect of the p lanned consolidation with MOL of Hungary. The analysts are generally positiv e about the move, although some suggest that the project has not been proper ly prepared. (Parkiet, p. 2) M.K.