Orlen: fix railway

VILNIUS — Orlen Lietuva said it wants the government to fix the railway line to its refinery by September that it started repairs on in 2008.

The Lithuanian government sold Mažeikių Nafta in 2006 with a record Polish investment abroad of €1.7 billion. However, the closure of the Druzhba pipeline by Russia after a staged accident has complicated matters, and the Lithuanian government fears the plant, the country’s largest company, will end up in [private_supervisor]Russian hands.

The government started track repairs in 2008, which should have taken less than a month, but now 2012 seems to be the earliest the 19 km railway could be repaired.

Since the shutdown of the Druzhba, the company has had to import raw materials to the refinery, the only one in the Baltics, from the sea, which is more costly.

PKN Orlen, which owns 28 percent of the group’s shares wants the rail fixed so business to Latvia can continue. The company says not repairing the tracks is a broken promise from the Lithuanian government.

The Orlen Lietuva group, which includes Mažeikių Nafta, made a $34.4 million consolidated net profit in 2009, according to a press release from the company. The refinery itself made a profit of €14.9 million.

The company earned €17.2 million in net profit in 2008.

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