Polish energy company ORLEN announced on Thursday (22 February) that its full-year LIFO-based EBITDA (before impairment losses) for 2023 was 44.8 billion zlotys (10.4 billion euros), with net profits at 27.6 billion zlotys (6.4 billion euros) and revenue of 373 billion zlotys (86.5 billion euros).
In 2022, the company noted a LIFO-based EBITDA of 38.7 billion złotys (9 million euros), 21.5 billion zlotys (5 million euros) in net profits and revenue of 278.5 billion złotych (64.7 billion euros).
Orlen Group doubles profits in 2022 in post-merger results
The company’s fourth-quarter results were positively impacted by the performance of the gas segment, which delivered an EBITDA of 11 billion zlotys (2.5 billion euros), primarily on the back of lower gas procurement costs and higher sales, ORLEN noted in a press release.
ORLEN also increased its retail sales volumes by more than 20 per cent (y/y), partly as a result of the acquisition of service stations in Hungary and Slovakia, the company noted in the press release.
“The results posted by ORLEN last year are in line with the Group’s strategic plans. Nonetheless, it is crucial for ORLEN to fully capitalise on the potential created through the mergers. Of particular importance is the implementation of projects that support the future of the ORLEN Group and its energy transition. We already have RES capacity of nearly 1 GW, which will be steadily expanded through investments and new acquisitions. We are also investing in hydrocarbon production and the refining and petrochemical area,” said Witold Literacki, acting CEO and President of the Management Board of ORLEN.
Last year, ORLEN’s retail network expanded by 73 service stations (y/y) to 3,170, mainly in Germany as a result of the acquisition of self-service stations from OMV, and in Hungary and Slovakia following a further acquisition of MOL stations. In addition, in the first quarter of 2024, ORLEN finalised the purchase of 267 service stations in Austria.
“ORLEN’s capital expenditure planned for this year is more than 38bn zlotys, of which nearly 28bn zlotys has been allocated to growth projects. We need to carry out these plans in the most efficient way, so it will be very important to select projects generating the highest returns and offering the best prospects for our shareholders,” Mr Literacki added.
In 2023, the company allocated a record amount of 32.4 billion zlotys for capital expenditure projects. At the end of last year, ORLEN’s net debt remained at a level of 1.8 billion zlotys (417.74 million euros) with a ratio of net debt to EBITDA of (-) 0.02x, the company said.