Mazeikiu Output up to 80 pct after Maintenance

Lithuanian refinery Mazeikiu, a unit of Polish refiner PKN Orlen (PKNA.WA), raised its output to 80 percent of capacity following maintenance that reduced it to 70 percent, PKN Orlen spokesman said on Monday.

"Output increased to 80 percent of capacity after the maintenance," Dawid Piekarz said. "However, we continue to limit production due to weak refining margins."

In October Mazeikiu said it pushed forward a necessary 6-7 days maintenance, which cut its output levels to about 70 percent, to take advantage of low refining margins and avoid down-time when the market situation improves.

Prior to the maintenance Mazeikiu said it cut production due to very poor margins.
PKN, which fully controls Lithuanian Mazeikiu, is consistently unhappy about profitability at its unit, as margins are being eroded by high logistics costs after a Russian pipeline stopped pumping oil to the refinery in 2006.

Since then the Lithuanian refinery gets oil through sea terminal, significantly denting profitability. (Reporting by Patryk Wasilewski).

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