ORLEN ORLEN Group 2017
Integrated Report

ORLEN Group’s Structure

GRI INDICATORS:
Capitals:

As at December, 31st 2017, the ORLEN Group consisted of 69 companies, including 59 subsidiaries.

The ORLEN Group companies are engaged in the following types of activity:

  • Production and trade: crude oil processing, production of refining, petrochemical and chemical products and semi-products, wholesale and retail sale of fuels and other products.
  • Services: crude oil and fuels storage, transport, maintenance and repair services, laboratory, security, design, administrative, insurance and finance services.
  • Exploration for and extraction of hydrocarbons, production, transmission and distribution of and trade in electrical and heat energy.

For management purposes, the ORLEN Group's business is divided into three operating segments of Downstream, Retail, Upstream, as well as Corporate Functions.

The ORLEN Group comprises PKN ORLEN, the Group’s Parent, and entities operating in Poland, Germany, the Czech Republic, Lithuania, Malta, Sweden, the Netherlands, Slovakia, Hungary, Estonia, Latvia, the US and Canada.

As at December, 31st 2017 the State Treasury owned 27.52% of the ORLEN Group Parent Company's shares - PKN ORLEN and has ability to exert a significant influence on it.

Allocation of the Parent Company and the ORLEN Group companies to the operating segments and corporate functions as at 31 December 2017. 

ORLEN GROUP

DOWNSTREAM SEGMENT
Production and sales
PKN ORLEN S.A.
UNIPETROL Group
  • UNIPETROL RPA s.r.o.
  • UNIPETROL Slovensko s.r.o.
  • UNIPETROL Deutschland GmbH
  • UNIPETROL RPA Hungary Kft.
  • Spolana a.s.
  • Butadien Kralupy a.s.
  • PARAMO a.s.
  • Paramo Oil s.r.o. (w likwidacji)
ORLEN Lietuva Group
  • AB ORLEN Lietuva
  • UAB Mazeikiu Naftos prekybos namai
  • OU ORLEN Eesti
  • SIA ORLEN Latvija
ORLEN Asfalt Group
  • ORLEN Asfalt Sp. z o.o.
  • ORLEN Asfalt Ceska Republika s.r.o.
ORLEN Południe Group
  • ORLEN Południe S.A.
ORLEN Oil Group
  • ORLEN Oil Sp. z o.o.
  • Platinium Oil Wielkopolskie Centrum Dystrybucji Sp. z o.o.
ANWIL S.A.
IKS Solino S.A.
ORLEN Paliwa Sp. z o.o.
Ship-Service S.A.
Kopalnia Soli Lubień Sp. z o.o.
Baltic Power Sp z o.o.
Grupa Basell ORLEN Polyolefins
  • Basell ORLEN Polyolefins Sp. z o.o.
  • Basell ORLEN Polyolefins Sprzedaż Sp. z o.o.
Service companies
UNIPETROL Group
  • UNIPETROL DOPRAVA s.r.o.
  • PETROTRANS s.r.o.
ORLEN Lietuva Group
  • UAB Emas
ORLEN Południe Group
  • Energomedia Sp. z o.o.
  • Euronaft Trzebinia Sp. z o.o.
  • Konsorcium Olejów Przepracowanych - Organizacja Odzysku S.A.
ORLEN KolTrans Sp. z o.o.
ORLEN Eko Sp. z o.o.
Orlen Aviation Sp. z o.o.
ORLEN Serwis S.A.
RETAIL SEGMENT
Sales and service companies
PKN ORLEN S.A.
UNIPETROL Group
  • UNIPETROL RPA s.r.o.
AB Ventus-Nafta
ORLEN Deutschland GmbH
ORLEN Centrum Serwisowe Sp. z o.o.
ORLEN Budonaft Sp. z o.o.
UPSTREAM
Exploration and Production
PKN ORLEN S.A.
ORLEN Upstream Group
  • ORLEN Upstream Sp. z o.o.
  • ORLEN Upstream Kanada Ltd.
  • 1426628 Alberta Ltd.
  • OneEx Operations Partnership
  • Pierdae Production GP Ltd.
  • 671519 NB Ltd.
  • KCK Atlantic Holdings Ltd.
  • Pierdae Production LP
  • FX Energy, Inc.
  • Frontier Exploration, Inc.
  • FX Energy Netherlands Partnership C.V.
  • FX Energy Netherlands B.V.
  • FX Energy Polska Sp. z o.o.
CORPORATE FUNCTIONS
Service and other activity
PKN ORLEN S.A.
UNIPETROL Group
  • Unipetrol a.s.
  • UNIPETROL RPA s.r.o.
  • Unipetrol vyzkumne vzdelavaci centrum, a.s.
  • HC Verva Litvinov a.s.
ORLEN Lietuva Group
  • AB ORLEN Lietuva
ORLEN Administracja Sp. z o.o.
ORLEN Ochrona Group
  • ORLEN Ochrona Sp. z o.o.
  • ORLEN Apsauga UAB
ORLEN Laboratorium S.A.
ORLEN Projekt S.A.
Grupa ORLEN Holding Malta
  • ORLEN Holding Malta Ltd.
  • ORLEN Insurance Ltd.
ORLEN Finance AB
ORLEN Capital AB
ORLEN Centrum Usług Korporacyjnych Sp z o.o.
Grupa Płocki Park Przemysłowo - Technologiczny
  • Płocki Park Przemysłowo - Technologiczny S.A.
  • Centrum Edukacji Sp. z o.o.

  Entities accounted for equity method

The Parent's policy with respect to the ORLEN Group companies focuses on strengthening the position of the core-business companies, developing power generation and the Upstream segment, as well as improving management, consolidating owned assets, and divesting non-core assets.

The purpose of these measures is to increase the market value of the ORLEN Group, to strengthen its position on home markets, and to expand its product offering and geographical reach. The Group’s key development investments are aimed at further expanding the product portfolio, deeper conversion, construction of new electricity generating capacities, and continuation of the hydrocarbon exploration and production projects. To ensure effective management, holding management policies have been developed and comprise solutions designed to implement Parent-defined shared goals across the ORLEN Group.

The policies are based on the ORLEN Group Constitution which stipulates three key regulations: the Cooperation Agreement, the Group Rules, and provisions of respective articles of association of the ORLEN Group companies.

The Constitution provides for uniform information exchange standards and effective monitoring of key business decisions. It also defines the legal basis for establishing a coherent strategy for the ORLEN Group. PKN ORLEN’s effective corporate supervision relies on formal and legal supervision as well as on supervision of the companies’ operating and finance activities.

The division of powers and responsibilities between members of the PKN ORLEN Management Board as at the date of 15 March 2018 is presented below:

Responsibility areas of Members of the PKN ORLEN Management Board as at date of 15 March 2018

 
PRESIDENT OF THE MANAGEMENT BOARD, CHIEF EXECUTIVE OFFICER
DANIEL OBAJTEK
Strategy
Human Resources
Trade of Crude Oil and Gas
Marketing
Corporate Communication
Management Board Office
Control and Security
Audit, Financial Control and Enterprise RIsk Management
Legal
Corporate
Regulatory Risk Management
External Relations
MEMBER OF THE MANAGEMENT BOARD, CHIEF FINANCIAL OFFICER
WIESŁAW PROTASIEWICZ
Planning and Reporting
Business Controlling
Finance Management
Taxes
Supply Chain Management
Investor Relations
Security of Infrastructure and Data Supervision Office, Critival Infrastructure Protection Officer
MEMBER OF THE MANAGEMENT BOARD, SALES
ZBIGNIEW LESZCZYŃSKI
Wholesale of Refinery Prodcuts
Sale of Petrochemical Products
Retail Sale
Logistics
Efficiency and Development of Sale
IT
MEMBER OF THE MANAGEMENT BOARD, PRODUCTION
KRYSTIAN PATER
Refinery Production
Petrochemical Production
Power Engineering
Production Efficiency and Optimisation
Technics
Water and Wastewater Management
MEMBER OF THE MANAGEMENT BOARD, INVESTMENTS AND PROCUREMENT
JÓZEF WĘGRECKI
Implementation of Investments
Procurement
Development and Technology
Health and Safety
Environmental Protection
Administration
Innovation

Current responsibility areas of Members of the PKN ORLEN Management Board are available here.

Below are described the main changes in the organisation of the Parent effected in 2017:

  • A new Investments and Procurement division was established, with the areas of responsibility of the Executive Director for Investment, Development and Technology, Occupational Health and Safety, and Environmental Protection (previously in the Development and Power Generation division) transferred to the new unit. Other organisational units transferred to the division were the Office of the Executive Director for Procurement (from the division of Vice-President of the Management Board), and the Administration Office (from the Finance division).
  • The Office of the Executive Director for Power Generation and the Water and Wastewater Management Office (the latter separated from the Environmental Protection Office) were transferred to the Production division. Previously, the two offices were part of the area overseen by the Management Board Member for Development and Power Generation.
  • The Development and Power Generation division was closed down, with its subordinate units transferred elsewhere within the organisation, as described above.
  • The Office of the Executive Director for Supply Chain Management, the Office of the Executive Director for IT, the Equity Investments Office, and the Investor Relations Office were transferred from the Finance division to the division of Vice-President of the Management Board.
  • The Office of the Executive Director for Human Resources and the Regulatory Risk Management Office were transferred from the division of Vice-President of the Management Board to the division of President of the Management Board.
  • The Equity Investments Office was transferred to the division of the Executive Director for Strategy.

There were no material changes in the organisation and management policies of the other ORLEN Group companies in 2017.

In 2017, projects designed to further centralise the accounting, payroll and HR services within the ORLEN Group were continued. The centralised accounting and finance functions were extended to cover Anwil S.A. At the end of 2017, ORLEN Centrum Usług Korporacyjnych Sp. z o.o. provided comprehensive accounting services and HR/payroll services to, respectively, 21 and 26 ORLEN Group companies.The current division of duties and responsibilities of members of the PKN ORLEN Management Board is available here.



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