Polish business daily Parkiet reports that PKN received few bids on its German retail fuel station network, Orlen Deutschland. PKN spokesman confirmed the information adding that PKN currently analyses the offers. The daily speculates that the offers came from financial institutions.
Our view: PKN never said firmly that it is trying to sell Orlen Deutschland, but said it is considering the move. In our view the management finally realized that PKN cannot create shareholder value with this huge, but near loss-making network network, and wants to spin it off. It is a big question, however, at what price PKN would be able to sell it, since market condition for fuel retailers in Germany did not improve in the past two years. Nevertheless, market should welcome the move as PKN might reinvest the price at more profitable business areas.