UPDATE 1-PKN sees much higher Q2 EBIT on oil inventory boost

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WARSAW, July 18 (Reuters) - Polish refiner PKN Orlen PKNA.WA expects its second-quarter operating profit to be much higher than a year earlier as inventory gains from soaring oil prices offset weaker refining margins and a strengthening zloty.

A drop in refining margins and the zloty's 20-percent jump against the dollar reduced the second-quarter operating profit by a total of more than 600 million zlotys ($295.1 million), Poland's largest oil company said in a statement on Friday.

"On the other hand the rising crude oil prices had a positive impact on PKN Orlen's EBIT (earnings before interest and tax) due to inventory gains," it said.

PKN processed 7.3 million tonnes of oil in the second quarter, or 22 percent more than a year before, but its refining margin was 42 percent lower, the statement said.

State-controlled PKN is scheduled to report its full second-quarter figures on Aug. 13.

In the second quarter of 2007, the company reported an operating profit of 1.3 billion zlotys after refining 6 million tonnes of oil. (Reporting by Piotr Skolimowski, editing by Will Waterman)