Despite the growing pressures of the macroeconomic environment, ORLEN Group has concluded the second quarter of 2024 with an EBITDA LIFO operating profit of PLN 11.3 billion in regulatory adjustments, an 8% (r/r) increase. A major influence on this result was the energy sector, though an increased volume in the extraction sector has also boosted the overall outcome, compensating for the negative macro effect. In the first half of this year, ORLEN Group has allocated 14 billion PLN for investments supporting energy transformation and enhancing Poland’s energy security.
“In the second quarter, we have demonstrated that reinforcing management competencies can support the achievement of solid results, even in an unfavourable macroeconomic environment,” said ORLEN’s CEO Ireneusz Fąfara. “In accordance with our strategy, we have increased our capacity during the renewable energy expansion. This will not only strengthen our energy segment, but will also gradually improve the emission profile of our production in the future.”
In the second quarter 2024, ORLEN Group earned:
– Revenue of PLN 69.5 billion
– An EBITDA LIFO excluding regulatory effects of PLN 11.3 billion
– Cash flows from operations at PLN 6 billion
The refining segment’s EBITDA LIFO profit was around PLN 2.6 billion in the same period, the exploration segment turned over PLN 3.9 billion in losses, and the gas segment noted a profit of PLN 4.1 billion.
The petrochemical sector, amid persistently difficult macroeconomic conditions and margin pressure on all petrochemical products, was down by EBITDA LIFO of PLN 180 million. The power generation segment’s EBITDA for the second quarter was approximately PLN 2 billion, and the retail segment’s EBITDA for Q2 2024 was PLN 893 million. At the same time, the ORLEN network expanded with another 348 three modern fuel stations, now totalling 3,505 across seven European countries.
Magdalena Bartoś, Vice President of the ORLEN Board for finance, said: “All areas of our activity are developing, and we are strengthening ORLEN’s position as a dividend company, sharing profits for the 12th year in a row. A review of planned work and their optimization has enabled us to rationalize investment expenditure to PLN 35.3 billion, 9% less than initially planned.”
The General Meeting decided to set the dividend day for 20th September, with it being paid out on the 20th December 2024. The net debt to EBITDA operating result ratio at the end of the second quarter was 0.07x. ORLEN has maintained the highest ratings ever awarded – A3 from Moody’s Investors Service and “BBB+” from Fitch Ratings.
Source: https://ceo.com.pl/skonsolidowane-wyniki-grupy-orlen-za-drugi-kwartal-2024-roku-76952
