At PKN ORLEN, we are committed to ensuring that our business activities are carried out with due regard to the needs of all our stakeholders. Being aware of PKN ORLEN’s role in the Polish economy, we consistently pursue growth-oriented projects, expand our offering, and seek to ensure security of feedstock supplies to the ORLEN Group.
Given the dynamic market environment, we need to take bold steps in response to changes. Recent months have brought a number of strategic decisions, including the initiated process to acquire Grupa LOTOS, completion of the squeeze-out of minority shareholders at Unipetrol, PKN ORLEN’s initiatives geared towards the development of electric mobility and wind power generation, and launch of the Petrochemicals Development Programme, the largest investment project in the sector’s history.
The new projects will position us to grow and effectively build PKN ORLEN’s value in the long term. At the same time, they are expected to bring tangible effects for the Polish economy as a whole and for Poland’s energy security.
We are determined to leverage the enormous potential of the ORLEN Group in the coming years. In doing so, we want all our stakeholders not only to be aware of our objectives but also to benefit from the activities we undertake.
I strongly encourage you to read the Integrated Report, in which you will find information on the financial and non-financial aspects of the ORLEN Group’s operations.
2017 was a period of dynamic growth and innovation in the Retail segment, which allowed us to achieve a record result of over PLN 2.0bn. Undoubtedly, we benefited from the strong economic upturn and further reduction of the grey market, which translated into record sales of fuel products. At the end of the year, PKN ORLEN’s modern service station chain spanning Poland, the Czech Republic, Germany and Lithuania comprised nearly 2,800 stations and reported the highest ever fuel sales volumes of approximately 11bn litres. Last year, we also worked on enhancing the standards at the ORLEN service station chain, which included expanding the non-fuel offering. We focused on developing innovative food and beverage service formats and at the end of 2017 there were nearly 180 locations within PKN ORLEN’s retail chain featuring the stop.cafe 2.0 coffee formats and O!Shop retail outlets. In total, PKN ORLEN had 1,571 stations offering food services across all formats (Stop Cafe, Stop Cafe Bistro and Stop Cafe 2.0). The first products under our proprietary O! brand were placed on the market. All this led to record sales of non-fuel products.
In 2017, we also recorded excellent sales of refining and petrochemical products, achieving the best ever result for the ORLEN Group of nearly 33 million tonnes. Higher value of the segment’s sales translated into an excellent financial result, with a significant support from the logistics area, which rose to the challenge and transported record volumes of products.
In 2017, the ORLEN Group achieved a record LIFO-based EBITDA of PLN 10.4bn. This result was made possible by our ability to take advantage of favourable macroeconomic conditions, such as the strong economic growth in all of our home markets as well as a significant increase in fuel consumption in Poland resulting from curbing the grey market. We continued to pursue our ambitious capex programme of PLN 3.9bn. In 2017, PKN ORLEN was assigned its best-on-record rating from Moody’s (Baa2 with a stable outlook), paid dividend of PLN 3.0 per share, and reduced its net debt by PLN 2.6bn. Last year’s performance gives us solid foundations for further growth in all areas of operations.
Consistent strengthening of the Company’s competitive position through investments in new production assets as well as more efficient use of the existing ones was our priority in 2017. During the year, the ORLEN Group achieved a record oil throughput of more than 33 million tonnes. We were – and still are – focused on integrating and utilising our production assets to the largest extent possible, enhancing flexibility in response to the market and regulatory challenges, and increasing high-margin product yields. As part of our ambitious investment programme, we continued the implementation of key downstream projects, such as the Metathesis and Visbreaking units at the Płock production plant, and the Polyethylene Unit (PE3) in Litvínov, the Czech Republic. We focused on further development of modern energy cogeneration – in June 2017, we launched a new CCGT plant in Włocławek, with a similar project in Płock nearing completion.
PKN ORLEN is the largest company in Central and Eastern Europe and the most valuable Polish brand. We are an established player on the fuel and energy markets. Our refined and petrochemical products are sold to customers in more than 90 countries on 6 continents.
We attach great importance to sustainable development and a responsible supply chain. We cooperate with over a dozen thousand suppliers in Poland and abroad, with a direct impact on a great number of small and medium-sized companies as well as the daily lives of millions of people.
We want to cooperate with trading partners that operate in accordance with legal regulations and transparency standards, but first of all respect human rights, ensure safe and fair working conditions, and care for the environment.
Supporting our trading partners in the development of responsible business practices is our priority.
Value growth should be aligned with the interests of external stakeholders and rely on sustainable and responsible use of resources.Read more
Business strategies are expected to address challenges posed by civilisational changes, progress and advancement, and evolving stakeholder expectations.Read more
We are aware of our environmental impact. In our operations we strive to minimise our environmental footprint by adapting production units to new requirements and standards and by implementing numerous projects.Read more
The ORLEN Group seeks to eliminate any instances of corruption and bribery. We prevent all forms of corruption and put in place preventive practices within the organisation and in the supply chain.Read more