Lithuania will not renegotiate the price of its Mazeikiu Nafta refinery, despite fire damage, as the signed agreement did not offer such an option, its prime minister said on Tuesday. Also he hopes the sale to PKN Orlen will be concluded by the start of next year.
Our view: This is negative news for PKN Orlen since supplies cut as well as recent fire accident definitely had a negative impact on the Mazeikiu assets value. However it was expected that Lithuania would insist on initial price and there was no clear intention from PKN Orlen to renegotiate it, therefore we expect the news to have neutral trading impact.