Strong earnings delivered by ORLEN Group in Q1 2025

“Our strong financial performance is a tangible outcome of the work to resolve legacy issues at the Group and consistently execute our ambitious 2035 Strategy. We are focused on delivering against our strategic priorities – securing domestic and imported gas supplies essential for Poland’s energy transition, decarbonising our generation assets, investing in power and gas distribution networks, and scaling up renewable energy capacity. The positive market response to our chosen development path is reflected in ORLEN’s share price, which has risen by nearly 50% since the year’s beginning, reaching an all-time high for the integrated Group,” says Ireneusz Fąfara, CEO and President of the ORLEN Management Board.

In the first quarter of 2025, the ORLEN Group recorded:

• Revenue of PLN 73.5 billion
• LIFO-based EBITDA of PLN 11.6 billion
• Operating cash flows of PLN 15.7 billion

The Upstream & Supply segment delivered an EBITDA of PLN 5.3 billion, marking a y/y increase of PLN 2.7 billion, driven by higher wholesale gas prices. The result was also positively affected by the absence of a contribution to the Price Difference Compensation Fund. Hydrocarbon production in the period averaged approximately 210 thousand boe/d, of which 73% was natural gas, produced mainly from Norwegian and Polish fields, with crude oil and LNG accounting for 27%.

The Energy segment reaffirmed its strong position, generating an EBITDA of PLN 4.3 billion, up by PLN 614 million y/y. This growth was primarily driven by improved performance in power and gas distribution networks (PLN 541 million), as well as heat generation (PLN 145 million).The ORLEN Group’s installed capacity totalled 6.1 GWe, with electricity generation volumes in the quarter amounting to 5.1 TWh. Currently, nearly 65% of electricity generated by the Group comes from low- and zero-carbon sources.

The persistently challenging macroeconomic climate for petrochemicals, combined with a normalisation of refining margins, were key contributors behind the Downstream segment’s LIFO-based EBITDA, which amounted to over PLN 1.2 billion. In the first quarter of 2025, the ORLEN Group’s refineries processed 9.2 million tonnes of crude oil, a volume comparable to that recorded in the same period last year.

The Consumers & Products segment achieved an EBITDA of PLN 1.2 billion, marking a y/y increase of PLN 963 million. In line with the Group’s new strategy, this segment now consolidates the sale of energy carriers – gas, electricity, and fuels – to end users. The result was driven by further advances in operational excellence, increased gas sales, and stable y/y performance in both fuel and non-fuel sales. The ORLEN retail network now comprises over 3.5 thousand fuel stations and more than 2.7 thousand non-fuel retail outlets. As a result of consistent investment, the Group also operates nearly 880 alternative refuelling stations across six European markets.

“This was an excellent quarter for ORLEN Group and its shareholders, both operationally and financially. We delivered LIFO-based EBITDA that was 40% higher year on year, and notably, operating cash flow reached almost PLN 16 billion. These results demonstrate that the ORLEN Group is performing strongly despite the continued high volatility in our markets,” says Magdalena Bartoś, Vice President of the ORLEN Management Board, Chief Financial Officer.

In the first quarter of 2025, the ORLEN Group generated PLN 15.7 billion in operating cash flows, with a net debt to EBITDA ratio at quarter-end among the sector’s lowest. This confirms the ORLEN Group’s solid financial foundations while reflecting its strong transformational potential. ORLEN maintained its highest-ever credit ratings of “A3” from Moody’s Investors Service and “BBB+” from Fitch Ratings.

During the first quarter, the ORLEN Group consistently enhanced its value and competitive advantages, while investing billions of zloty to ensure the security of energy supplies for Poland and the broader region. A new gas deposit was discovered in the Greater Poland region, with reserves estimated at nearly a quarter of a billion cubic metres.

As previously announced, ORLEN continues to establish forward-looking partnerships. One such example is its cooperation with Ukraine’s Naftogaz, under which the Group has signed three contracts for the supply to Ukraine of a total of 300 million cubic metres of natural gas originating from the US. The share of liquefied natural gas delivered by sea in Poland’s gas imports continues to increase. Consequently, in the first quarter of 2025, ORLEN expanded its LNG carrier fleet by two additional vessels, to ultimately reach eight ships.

Seeking to develop its capabilities in the use of CCS technologies, ORLEN has established cooperation with Norway’s Equinor, which is to cover transport and storage of carbon dioxide within the Polish sector of the Baltic Sea.

ORLEN has also partnered with the Warsaw University of Technology Branch in Płock and the AGH University of Science and Technology in Kraków to collaborate on advancing the technology for synthetic fuels production. Moreover, ORLEN has launched a market study and dialogue with potential suppliers of low-carbon and renewable ammonia, which will be used to produce fertilizers while reducing emissions at the Anwil plant in Włocławek. The Company is also exploring the potential of renewable ammonia as a source of hydrogen for the production of synthetic aviation fuels.

ORLEN VC, the Group’s corporate venture capital fund, is also involved in the development of hydrogen technologies. It has invested in the Norwegian company Hystar, whose innovative solutions will enable the annual production of high-efficiency membrane electrolysers with a total capacity of 1.5 GW starting from 2027.

In accordance with the ORLEN2035 Strategy, the Group also pursued key power generation projects. A top priority is the construction of the offshore wind farm in the Baltic Sea, which is expected to begin generating electricity next year. Advanced work is currently underway to prepare for the installation of turbines and subsea cables. A maintenance base in Łeba has also been launched to support the project and ensure its efficient operation throughout the approximately 30-year lifecycle.

ORLEN is also advancing the development of the Baltic East project, with a capacity of 1 GW, adjacent to the Baltic Power licence area. The environmental permitting process for this project is now at an advanced stage. Dialogue with potential suppliers is also ongoing, which will help maximise local content in the project.

At the same time, investments in low-carbon energy sources are being pursued. The CCGT projects in Ostrołęka and Grudziądz are 90% complete, with commissioning scheduled for the first half of 2026. Work is underway to prepare additional projects – CCGT Grudziądz II and CCGT Gdańsk – for the supplemental capacity market auction planned for August this year, as well as CCGT Siekierki for the main auction scheduled for December.

The Group is also undertaking a large-scale modernisation of power networks in northern and central Poland. For this purpose, preferential financing of PLN 7.5 billion has been secured under the National Recovery and Resilience Plan (KPO).Since the beginning of the year, 300 MW of RES capacity has been connected, 400 km of power lines have been constructed or upgraded, and in the first quarter alone, more than 12 thousand new customers were connected within the Energa Operator service area.