In the first quarter of 2025, ORLEN Group reported impressive financial performance, with LIFO-based EBITDA rising by 40% year-on-year to PLN 11.6 billion and net profit surging over 50% to PLN 4.3 billion. Around 80% of operational profit came from the hydrocarbon exploration & distribution and energy segments, which are central to the company’s strategic development initiatives. These include bringing new Norwegian fields into production, building the Baltic Power offshore wind farm, upgrading energy grids, and constructing two gas-fired power plants.
Additionally, ORLEN recorded a 200,000 increase in active VITAY app users and gained 20,000 new gas and electricity retail customers. The Group invested PLN 6.2 billion in strategic transformation projects in Q1 and simultaneously reduced net debt by over PLN 8 billion quarter-on-quarter.
“These strong financial results reflect the benefits of streamlining the Group’s operations and executing our ambitious 2035 Strategy. We’re focused on strategic priorities — ensuring access to domestic and imported gas essential for Poland’s energy transition, decarbonizing power generation, investing in energy and gas networks, and expanding renewables. The market has responded positively — ORLEN’s share price has risen nearly 50% since the beginning of the year, reaching a record high for the integrated Group,” said Ireneusz Fąfara, President of ORLEN’s Management Board.
Key Q1 2025 Financial Highlights:
- Revenue: PLN 73.5 billion
- LIFO EBITDA: PLN 11.6 billion
- Operating Cash Flow: PLN 15.7 billion
Upstream & Supply Segment
This segment delivered EBITDA of PLN 5.3 billion, up PLN 2.7 billion year-on-year, driven by higher wholesale gas prices and the absence of a write-down for the Price Difference Payment Fund. Hydrocarbon production averaged 210,000 boe/d, with gas making up 73% — primarily from Norway and Poland — and oil and LNG accounting for 27%.
Energy Segment
Energy posted EBITDA of PLN 4.3 billion, up PLN 614 million year-on-year, with strong performance in distribution networks (PLN +541 million) and district heating (PLN +145 million). ORLEN’s installed capacity reached 6.1 GWe, generating 5.1 TWh of electricity, 65% of which came from low- and zero-emission sources.
Downstream Segment
Despite a challenging macro environment and normalizing refinery margins, the segment posted over PLN 1.2 billion in EBITDA. ORLEN refineries processed 9.2 million tons of crude oil, comparable to the previous year.
Consumers & Products Segment
EBITDA reached PLN 1.2 billion — up PLN 963 million year-on-year — as ORLEN integrated gas, electricity, and fuel retail operations. This result was driven by enhanced operational efficiency, strong gas sales, and stable fuel and non-fuel retail sales. The ORLEN network now includes over 3,500 fuel stations and 2,700 non-fuel retail points. The company operates nearly 880 alternative fueling stations across six European markets.
“Q1 was an excellent quarter for ORLEN and its shareholders, both operationally and financially. Our LIFO EBITDA increased by 40%, and we generated nearly PLN 16 billion in operating cash flow. These results prove that ORLEN is performing strongly despite high market volatility,” said Magdalena Bartoś, ORLEN’s CFO.
The company’s net debt-to-EBITDA ratio at the end of Q1 was one of the lowest in the sector, underscoring its strong financial footing and high potential to execute transformative investments. ORLEN maintained its best-ever credit ratings — A3 from Moody’s and BBB+ from Fitch.
Strategic and Development Initiatives
- Gas security: A new gas field in Greater Poland with reserves of nearly 250 million cubic meters was discovered.
- Ukraine partnership: ORLEN signed three contracts with Naftogaz to supply 300 million m³ of U.S.-sourced gas to Ukraine.
- LNG imports: ORLEN expanded its fleet with two new LNG carriers, with a total target of eight ships.
- CCS technologies: Cooperation with Norway’s Equinor on carbon capture and storage in the Polish section of the Baltic Sea.
- Synthetic fuels: Collaborations with Warsaw University of Technology and AGH University to improve synthetic fuel production.
- Low-emission ammonia: Market studies and talks are underway for using renewable ammonia in fertilizer production and as a hydrogen source for aviation fuels.
- Hydrogen tech: ORLEN VC invested in Norwegian firm Hystar, which aims to produce 1.5 GW/year of high-efficiency electrolyzers by 2027.
Renewable Energy and Power Projects
- Baltic Power wind farm: On track for first MWh output in 2026. Turbine and cable installation preparation is underway, and a service base in Łeba has been launched.
- Baltic East wind project (1 GW): Environmental permitting is in advanced stages.
- Gas power plants: The Ostrołęka and Grudziądz CCGT projects are 90% complete and due to finish in H1 2026. Future projects — CCGT Grudziądz II, CCGT Gdańsk, and CCGT Siekierki — are being prepared for upcoming capacity market auctions.
Power Grid Modernization
ORLEN is also modernizing energy networks in northern and central Poland, supported by PLN 7.5 billion in preferential financing from Poland’s National Recovery Plan (KPO). In Q1 alone:
- 300 MW of renewable capacity was connected
- 400 km of grid was built or upgraded
- 12,000+ new consumers were connected in Energa Operator’s area
Source: CEO.com.pl
