WARSAW, July 21 (Reuters) - Poland’s biggest oil refiner, PKN Orlen, said on Friday that its second-quarter net profit fell 4 percent year on year to 1.54 billion zlotys ($424.65 million), missing analysts expectations as costs rose more than sales.
Analysts had expected PKN to report a rise in net profit to 1.87 billion zlotys in the second quarter, due to higher sales and margins as well an insurance payment related to a 2015 refinery accident.
PKN said its sales in April-June rose 19 percent to 23 billion zlotys on new regulations passed in August last year to curb the black market of fuel sales. The refiner also received 500 million zlotys in another tranche of insurance payments.
However, the second-quarter result was burdened by the cost of sales rising by 24 percent year on year and a write-down related to revaluation of oil inventories.
The group’s adjusted operating profit, the so-called EBIT LIFO which removes the impact of crude oil price changes, came at 2.46 billion zlotys versus 2.49 billion zlotys expected by analysts.
PKN refined 10 percent more crude oil during the quarter than in the same period last year. ($1 = 3.6265 zlotys) (Reporting by Agnieszka Barteczko; Editing by Sunil Nair)