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Orlen’s CEO: Philosophy of PKN Orlen makes sense and is implemented successfully

by Dignity News
Daniel Obajtek, the president of PKN Orlen, commented on the company’s results for the first quarter of 2022. He said that all segments of the PKN Orlen Group’s operations bring profits. “It shows that the philosophy of the multi-energy group that we have adopted and implemented effectively makes sense,” said Obajtek.

“The results are solid despite the demanding environment, even compared to the first quarter of 2021. We are constantly expanding our operating markets, not only in Poland but also abroad. In the first quarter of 2022, the company spent a record 3 billion PLN for investments – HVO, second-generation bioethanol, hydrocracking, visbreaking, olefins and the CCGT power plant in Ostrołęka. The implementation of all these investments is safe and the investment processes are going according to plan.

In his opinion, the results of the retail segment in the first quarter clearly indicate that the accusations regarding draining the pockets of drivers are unfounded.

“Retail EBITDA in the first quarter of this year, was comparable to the first quarter of 2021, despite an increase in sales volumes by 13%. Moreover, fuel margins in Poland and the Czech Republic have declined significantly”, emphasized the president of PKN Orlen.

According to the results published on Thursday, in the first quarter of 2022, the Orlen Group generated a net profit of PLN 2.8 billion; it is PLN 1 billion more year-on-year. At that time, the Orlen Group’s LIFO EBITDA amounted to PLN 2.79 billion, PLN 0.4 billion more than in the previous year.

The retail segment generated PLN 585 million in EBITDA, which is a result similar to the same period last year. The increase of 13% in sales was due to an increase in gasoline sales by 16%, diesel by 12%. and LPG by 8%.

In Poland, sales increased by a total of 22%, with 2% lower sales in the Czech Republic, 4% lower sales in Lithuania and comparable sales in Germany. The company stated that the segment’s result was influenced by the decline in fuel margins in the Polish market, along with the growth in the German, Czech and Lithuanian markets.

The refining segment generated PLN 900 million in LIFO-based EBITDA. Year-on-year sales increased by 17%, including gasoline by 33%, diesel by 21%, LPG by 31%, JET aviation fuel by 153% and heavy fuel oil by 35%. The petrochemical segment reached PLN 451 million LIFO-based EBITDA and recorded an increase in sales volumes by 10%.

The energy segment achieved EBITDA of PLN 1 billion. Electricity production increased by 11%. The Group produced the largest volume of green electricity in history increasing by 46% year-on-year.

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