PKN Orlen sees market value fall 6% in first quarter

The markets have been stunned by PKN Orlen's announcement that it made net losses in the first quarter of the year totaling zl.15.7 million. This compares to the zl.131.7 million profit recorded by the company in the first three months of 2000. Following the shock announcement, shares in PKN Orlen, which is Poland's leading fuel distribution company, fell sharply, to close at zl.18.6 on Monday, down by 6.3% from Friday's close. Company officials say the worse-than-expected results are due to seasonal factors, and to lower demand for fuels in general caused by Poland's slowing economic growth. However, most analysts describe this explanation as inadequate. They claim the poor results may be caused at least in part by the company's amassing last year of stocks, which it had to sell this year at a price lower than it had paid. Nevertheless, all the experts agree that PKN Orlen will see an upturn in its performance during the rest of 2001. (Prawo i Gospodarka, 2-3 May, p. 1, 13) M. S.-C.