PKN ORLEN closes acquisition of petrochemical assets

PKN ORLEN has closed the transaction to acquire a part of the business of Poland’s largest plastics manufacturer Basell Orlen Polyolefins, in which the Company holds an equity interest. The business involves the production and marketing of LDPE, as well as customer service in the Polish market. The transaction was cleared by the Polish and Dutch antitrust regulators. The acquired production capacity is 100 thousand tonnes per year, which means that PKN ORLEN, as Poland’s only producer of LDPE, will single-handedly cover about a third of the country’s overall demand for the plastic.

ORLEN Group discloses its total carbon footprint

The ORLEN Group is extending its sustainability reporting framework to include Scope 3 emissions, which will allow it to quantify greenhouse gas emissions across the value chain. Accordingly, the ORLEN Group’s disclosures will include not only direct emissions from its production processes and those generated by suppliers, but also emissions related to the use of the Group’s products by end users. The Group has published data for 2019-2021, but in the following years reporting will also cover the newly acquired companies Grupa Lotos and PGNiG.

ORLEN VC invests in a raw material worth more than gold

ORLEN plans to implement an innovative technology that will enable cheaper, faster and more environmentally friendly production of intermediates used in the manufacture of cars, medicines, plastics or fuel additives, among other products. This is end effect of another investment made by the venture capital fund established by PKN ORLEN in an innovative Polish company, Apeiron Synthesis. In addition to PKN ORLEN, Aper Ventures and Adamed joined the round as part of which innovative businesses raise funding.

ORLEN Group to ramp up oil and gas production in Norway

The ORLEN Group together with the operator AkerBP and licence partners have prepared plans for development and operation for their fields on the Norwegian Continental Shelf. The reserves in these fields attributable to the Group are estimated at a total of 9 bcm of natural gas and 46.6 mboe of crude oil and natural gas condensate. Gas produced from the ORLEN Group’s fields is to represent a significant part of the volume transported to Poland via Baltic Pipe. The planned investments require consent of the Norwegian parliament. A favourable decision, expected in the second quarter of next year, will allow drilling on the fields to begin in 2024 and 2025, with production start in 2027. The ORLEN Group’s upstream investments are in line with the Group’s strategic goals related to boosting Poland’s energy security and independence.

ORLEN Group implements management of climate-related issues

The ORLEN Group has appointed a Management Board Representative and Council for Climate and Sustainability. The main tasks of the new corporate body will include analysing risks and opportunities related to the energy transition and climate change and raising the standard of communication on environmental matters with investors and the business community. The Council will be headed by PKN ORLEN’s Management Board Member for Strategy and Sustainability.

ORLEN Group strengthens security of LNG supplies to Poland

As early as next year, ORLEN Group will have for its exclusive use two custom-built LNG carriers. By the end of 2025, the number of such gas carriers will increase to eight. Having its own fleet of LNG vessels, the ORLEN Group will be able to efficiently manage shipments to Poland and strengthen its position on the global LNG market.

ORLEN expanding its retail presence in Europe

The ORLEN Group has taken over and is beginning to rebrand 79 fuel stations in Hungary, currently branded as Lukoil. In addition, the Group will purchase 103 more fuel stations located in Slovakia and Hungary by mid-2024. ORLEN’s entry into the Hungarian market and purchase of more stations in Slovakia follow the merger of PKN ORLEN with its smaller peer LOTOS. According to its strategic vision, by 2030 the ORLEN Group’s retail network is to comprise 3,500 ORLEN-branded stations in at least six markets of Central and Eastern Europe, with the share of foreign locations in its entire network up from the current 37% to 45%.

PKN ORLEN completes three transactions in Poland with Aramco

PKN ORLEN has finalised three transactions with Aramco involving refining, wholesale and plane fuel businesses, following PKN ORLEN’s merger with Grupa LOTOS. The European investments support expansion of Aramco’s global downstream presence. Moreover, the joint development agreement of PKN ORLEN, Aramco and SABIC for the potential Gdansk project was signed. Aramco is to supply almost 45% of PKN ORLEN’s crude oil requirement under the agreement.

ORLEN Group’s Q3 results boosted by first effects of merger with LOTOS Group

In the third quarter of 2022, the ORLEN Group posted LIFO-based EBITDA of PLN 11.7bn, including PLN 3.1bn attributable to one-off items. Adjusted LIFO-based EBITDA came in at PLN 8.6bn, down by PLN (-) 2.1bn, or (-) 20%, compared with the second quarter of 2022.