PKN ORLEN’s Q3 2013 Consolidated Financial Results

Despite macroeconomic headwinds and challenging market conditions, PKN ORLEN has posted PLN 0.8bn in LIFO-based EBITDA for Q3 2013. The petrochemical and retail segments were the largest contributors, whereas the refining business remained under heavy macroeconomic pressures. The retail segment reported stronger sales by volume across all home markets.

PKN ORLEN wins back investment-grade standing

Today, Fitch Ratings has raised PKN ORLEN's credit rating to BBB-, with a 'stable' outlook, which means that after four years the Company has won back its investment-grade standing. This long-awaited change is a result of a consistent deleveraging effort and a policy aimed to maintain all financial ratios at safe levels, which has significantly improved the Company's credit standing, despite the persistently challenging climate for the industry across Europe. Fitch Ratings has also upgraded the Company's national rating to A- (pol), with a 'stable' outlook.

PKN ORLEN’s Q2 2013 Consolidated Financial Results

Despite the challenging macroeconomic and market conditions, PKN ORLEN recorded an increase in sales volumes across all business segments and maintained revenue at a level largely unchanged year on year. The Company improved its liquidity position, reducing debt by PLN 3.4bn year on year and decreasing financial leverage by 3pp on the year before.

The Ordinary General Meeting of PKN ORLEN

The Ordinary General Meeting of PKN ORLEN, convened to close the financial year 2012, is scheduled for today, at 11am. Its agenda includes a proposal to approve the performance of duties by members of the Company's supervisory and management boards, as well as resolutions on dividend amount and the composition of the Supervisory Board, whose term of office is due to expire.

PKN ORLEN Series B Bonds Already in Investors’ Portfolios

The Series B bonds have been subscribed for by over 2,000 investors, three times more than the number interested in buying the Series A bonds. The average purchase price was close to PLN 100,000. According to statistics, individual investors accounted for more than 90% of all subscription orders for the second series of PKN ORLEN retail bonds.

Successful issue of PKN ORLEN bonds

The first series of PKN ORLEN's retail bonds has received huge interest from investors, who subscribed to the entire first series, worth PLN 200m, within just two days. In response to the high demand, PKN ORLEN is considering issuing another series of bonds in the days to come. The Company plans to raise approximately PLN 1bn from the entire bond issue programme.

BBB+ rating for PKN ORLEN bond issue

Fitch Ratings assigned national rating BBB+ (pol) for the first series of PKN ORLEN's PLN 200m retail bonds issued as part of a twelve-month PLN 1bn bond issue programme. The rating agency also indicated that the company's long-term issuer default rating has a positive outlook and may change from BB+ to BBB- as soon as this year.

The first retail bond issue by PKN ORLEN

The yield on PKN ORLEN retail bonds can reach over 4% per year. Ultimately, the bonds' trading price and redemption price following a four-year period will be driven by rates calculated for six-month interest periods and a margin, as the bonds will bear interest at a floating rate. Today, the Company opened subscriptions for the first series of retail bonds offered to retail investors. The amount of the first series of bonds is PLN 200m. PKN ORLEN expects the proceeds from the entire bond issue programme to reach approximately PLN 1 billion.

PKN ORLEN’s Q1 2013 consolidated financial results

In Q1 2013, PKN ORLEN reported improved LIFO-based operating performance and maintained its good financial position despite major market challenges: deceleration of economic growth and lower consumption of fuels. The ORLEN Group's total sales volumes increased by 4% (y-o-y), driven primarily by growth in the refining segment. LIFO-based EBITDA rose by more than PLN 150m, the main contributor being a nearly 40% increase in the LIFO-based EBITDA posted by the petrochemical segment.