ORLEN Group reports robust Q2 2025 performance with strong profit growth

“Q2 was an outstanding quarter, during which we generated strong profits and consistently delivered on our commitments. Most importantly, we freed the entire region from dependence on Russian crude oil. That chapter is now closed: all of our refineries are processing feedstock from other parts of the world. At the same time, we are strengthening energy security by pushing forward with large-scale projects in the power sector. These efforts are already bearing fruit – new turbines are being installed at Poland’s first offshore wind farm in the Baltic Sea. From next year, it will begin supplying clean electricity to Polish households and industry.  Alongside these investments, our focus remains on our customers, who have benefited from the lowest energy prices in three years. Since July, seven million Poles as well as public institutions have seen their gas bills fall by nearly 15%, which translates into annual savings of up to PLN 1,000. We conduct our business responsibly and maintain the market’s trust,” says Ireneusz Fąfara, CEO and President of the ORLEN Management Board.

In the second quarter of 2025, the ORLEN Group generated:

• Revenue of PLN 60.7 billion
• LIFO-based EBITDA of PLN 9.2 billion
• Operating cash flow of PLN 10.5 billion

Performance by segment

The Upstream & Supply segment generated EBITDA of PLN 3.5 billion, an increase of PLN 4.5 billion y/y. Total hydrocarbon production in the period averaged 182 thousand boe per day, of which more than 70% was natural gas, produced mainly from Norwegian and Polish fields, with crude oil and LNG accounting for nearly 30%.

The Downstream segment achieved LIFO-based EBITDA of PLN 2.2 billion, supported by strong crude throughput and favourable macroeconomic conditions, despite the pressure of lower margins. At the same time, the petrochemical market environment remained challenging. In the second quarter, ORLEN Group’s refineries processed 9.8 million tonnes of crude oil – 5% more than a year earlier.

The Energy segment once again reaffirmed its strong position, posting EBITDA of PLN 2.2 billion, up PLN 368 million y/y, thanks to its consistently implemented investment programme. The improved result was due largely to increased gas and electricity distribution volumes and higher heat sales. Total installed capacity of the ORLEN Group was 6.2 GWe, with renewable energy capacity growing by 0.6 GW compared with last year. The Group generated 3.8 TWh of electricity during the period, an increase of 27% y/y.

The Consumers & Products segment delivered EBITDA of PLN 2 billion in the second quarter of 2025, marking a y/y increase of PLN 363 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. It reported higher sales of gas and electricity, including an increase of more than 70% in the e-mobility market.

“When reviewing our results, it is important to highlight the solid contribution from each segment, which confirms the resilience of our business model to market volatility and seasonal fluctuations. Strong operating cash flows support both our investment projects and our dividend policy. On 1 September, we will pay the highest dividend in ORLEN’s history,” said Magdalena Bartoś, Vice President of the ORLEN Management Board, Chief Financial Officer.

In the second quarter of 2025, the ORLEN Group generated PLN 10.5 billion in operating cash flow, while its net debt to EBITDA ratio stood at (-)0.08 at quarter-end, ranking among the lowest in the industry. ORLEN maintained its highest-ever credit ratings: A3 from Moody’s and BBB+ from Fitch, confirming its solid financial foundations and strong capacity to finance the energy transition.

In June, ORLEN successfully raised PLN 2.5 billion through a green eurobond issue that was 2.5 times oversubscribed, underscoring strong investor demand.
 

Investments in security

The ORLEN Group continues to strengthen energy security in Poland and the broader region. The final contract for Russian oil deliveries expired in June, marking the complete elimination of Russian crude from ORLEN’s supply chain. This means that ORLEN – and, by extension, the entire region – is no longer bound by any agreements with Russian entities for the supply of oil. Currently ORLEN refineries process feedstock from the Middle East and Persian Gulf, the North Sea, Africa, and both Americas.

The ORLEN Group's commitment to regional security is also reflected in contracts recently signed with Ukraine’s Naftogaz, increasing natural gas supply volumes to over 430 million cubic meters. Natural gas sourced from the U.S. is received through LNG terminals in Poland and Lithuania.

ORLEN and Naftogaz have also signed a memorandum of understanding to cooperate in upstream exploration, downstream development, and the reinforcement of cross-border relations and commercial ties. This is a major step in strengthening the ORLEN’s position in the Ukrainian market.

In recent months, the Group completed the expansion of the LPG terminal in Szczecin, increasing its annual capacity to 400,000 tonnes. The PLN 150 million project was carried out entirely by Polish companies.

Domestic gas production is also growing. Recoverable gas reserves at the Trzebusz field (Municipality of Trzebiatów in the Province of Szczecin) rose by 700 million cubic meters,  bringing total recoverable reserves in the area to 2.3 billion cubic meters.

The Group is investing in advanced technologies. Nearly PLN 2 billion from Poland’s National Recovery Plan will fund the construction of two new hydrogen plants. The ORLEN Group is the world’s pioneer in commercialising Multifuel, a cutting-edge technology that enables energy generation using hydrogen, natural gas or any mixture of the two, in a fully automated process.

ORLEN has also introduced a new fuel type: Sustainable Aviation Fuel (SAF), produced from renewable or waste-based feedstocks, which significantly reduces greenhouse gas emissions during both production and combustion.

In the past quarter, ORLEN continued to advance key energy 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. More than half of the foundations and five turbines have already been installed. Furthermore, work is progressing on the development of the Baltic East project, with a capacity of 1 GW, adjacent to the Baltic Power licence area. Some of the seabed surveys as part of the project, contracted to Polish companies, have already been completed.

In June, ORLEN Neptun, launched an offshore wind farm installation terminal in Świnoujście, the first facility of its kind in Poland and one of the most advanced in Europe. It will serve as a key base for the Group’s phase two offshore wind projects and will also be available to external operators. Two long-term contracts with major offshore players are already in place.

ORLEN is currently implementing a major programme to modernise power grids in the north of Poland, for which it secured preferential financing of PLN 7.7 billion from the National Recovery Plan. Since the beginning of 2025, nearly 1,800 km of transmission lines have been built or upgraded, and 16,700 new customers have been connected.

Effective energy transition needs to be supported with digital tools. This is why the ORLEN Group is undertaking the largest AI deployment in CEE. The solutions, to be implemented in collaboration with Microsoft, will enhance not only its energy operations, but also cybersecurity, production processes, data analysis and overall workforce efficiency across the Group.