Warsaw, Masovian 00-502
Poland
“For the reason that graduation of my mission on the ORLEN Group, I’ve operated underneath the steadfast perception that mediocrity just isn’t an possibility. I can now proudly say that, via collective efforts, now we have efficiently secured our place as a fully-fledged member of the premier league of Europe’s main gamers,” declares Daniel Obajtek, CEO and president of the administration board of ORLEN S.A., in his introductory remarks to our newest report titled “Multi-Power ORLEN. The Firm’s Development from 2016 to 2023.” On this complete publication, ORLEN delineates its key initiatives and triumphs over latest years, which have been instrumental in attaining our strategic goal: the institution of Central Europe’s largest gas and vitality group, with diversified operations, a strong enterprise mannequin, and the capability to execute billions of euro value of vitality safety and transition tasks throughout the area.
In recent times, the ORLEN Group has taken on the problem of merging a number of corporations essential for the vitality safety of Poland and the area. The efficiently accomplished mergers with Grupa LOTOS, PGNiG, and Energa have laid the muse for constructing a robust, multi-energy group with diversified operations – starting from upstream actions to crude oil processing and vitality manufacturing, and as much as complete wholesale and retail enterprise. This progress trajectory has additionally been in line with the worldwide traits of transferring away from vitality manufacturing primarily based on a single gas in the direction of a extra sustainable combine, with a predominance of renewables.
Because of these mergers, ORLEN has advanced into a company group with a possible akin to that of different main European corporations in its sector, akin to Repsol or ENI. Within the S&P Commodity Insights High 250 International Power Firm Rankings for 2022, which included the most important 250 vitality corporations globally, the ORLEN Group ascended from the 60th to the 37th place. In final 12 months’s version of the distinguished American Fortune journal’s listing of the most important 500 corporations on the planet by income (Fortune International 500), ORLEN ranked 216th, surpassing firms akin to Airbus, IBM, or Bayer, a major enchancment from the 454th place in 2015. Furthermore, within the Fortune 500 Europe, introduced for the primary time in November 2023, ORLEN was positioned 44th, making it the highest-ranked Polish firm.
ORLEN can be the primary gas and vitality firm in Central Europe to have dedicated to attaining carbon neutrality by 2050. To ship such an formidable goal, substantial investments are important. The dimensions of the capital tasks undertaken by ORLEN on this space is greatest illustrated by figures alone – in 2016, the Firm’s capital expenditure amounted to roughly PLN 4.7 billion, rising to PLN 19.7 billion in 2022, and standing at PLN 20.4 billion after the primary three quarters of 2023.
The expansion of the ORLEN Group goes hand in hand with the rise in uncooked materials and gas safety for Poland and all the area. It was because of the finished mergers and efficient constructing of enterprise relations throughout the globe, amongst different components, that we had been in a position to keep steady provides of fuels and vitality to prospects all through the pandemic and following the outbreak of conflict in Ukraine. Throughout this time, we broke away from the Firm’s legacy dependence on Russian crude oil, which as lately as 2015, accounted for practically 100% of the oil reaching the ORLEN Group’s refineries. Our present import portfolio is nicely diversified, together with crude oil provides from the North Sea, West Africa, the Mediterranean, the Persian Gulf, and the Gulf of Mexico.
Moreover, now we have efficiently diversified pure fuel provides to Poland. In 2015, deliveries from Gazprom represented near 90% of PGNiG’s fuel imports. A mere 12 months later, in 2016, the primary shipload of liquefied pure fuel from a special supply arrived on the President Lech Kaczy?ski LNG Terminal in ?winouj?cie on the Baltic Sea. Since then, LNG has accounted for a steadily rising share of imports, and in 2022 it grew to become the principle supply of fuel for Polish shoppers. In the identical 12 months, the Baltic Pipe fuel pipeline was launched, connecting Poland with the Norwegian Continental Shelf, the place ORLEN has in depth hydrocarbon manufacturing operations. Because of this, since 2023 Poland’s economic system has been absolutely impartial of oil and fuel provides from Russia.
The important thing to profitable enterprise improvement lies not solely in making certain stability but in addition within the readiness to embrace state-of-the-art applied sciences and options. Over the past eight years, ORLEN has made vital investments in numerous inexperienced vitality tasks, together with offshore and onshore wind energy, photo voltaic photovoltaics, biogas and biomethane, biofuels, electromobility, and hydrogen. The Group’s capital expenditure in 2023-2030 is deliberate to succeed in a complete of PLN 320 billion, of which as a lot as 40% can be allotted particularly to carbon emission discount tasks, i.e. the event of renewable vitality belongings. In 2023, the ORLEN Group made a last funding choice on the development of Poland’s first offshore wind farm, Baltic Energy, which by 2026 will obtain the capability to feed practically 1.2 GW of fresh vitality into the nation’s energy grid, enough to satisfy the demand from 1.5 million households. Moreover, to make sure the supply of ample set up infrastructure for the offshore trade, the Firm has additionally begun the development of a devoted set up terminal in ?winouj?cie.
“After finishing the collection of mergers in February 2023, we revised our ORLEN2030 technique, stepping up capital expenditures from PLN 140 billion to PLN 320 billion. One of many pillars of the ORLEN Group’s future can be inexperienced tasks supporting our journey in the direction of internet zero. We plan to spend PLN 120 billion on these initiatives by 2030. ORLEN is on the forefront of the vitality transition, which is crucial for sustaining the competitiveness of Poland’s economic system. On the identical time, whereas successfully implementing our formidable funding technique, we stay dedicated to sharing income with the shareholders,” mentioned Daniel Obajtek.
In 2023, ORLEN distributed a document dividend of PLN 6.4 billion. This enhanced capability for revenue sharing is without doubt one of the outcomes of the method of constructing a multi-energy group.
In recent times, the ORLEN Group has additionally progressively strengthened its place within the biofuels section. In 2018, it adopted the “Biofuels Programme”, which goals at a tenfold improve within the Firm’s biofuel output – to three million tonnes by 2030. Greater than PLN 15 billion has been earmarked for attaining this goal. ORLEN’s biofuel tasks, that are sited in Poland and the Czech Republic, contribute to job creation and stabilising demand for farming produce used as feedstock.
In constructing a strong multi-energy group, ORLEN engages in new enterprise actions whereas honoring its roots. Accordingly, in 2021, the growth of the P?ock Manufacturing Plant’s Olefins III advanced was commenced, representing the most important petrochemical funding venture in Europe within the final 20 years. As soon as upgraded, the power is predicted to contribute roughly PLN 1 billion PLN to ORLEN’s annual working revenue and, because of the appliance of state-of-the-art applied sciences, to assist cut back carbon depth – in the end by as much as 30% per tonne of output. The Olefins III advanced growth venture is slated for completion in 2027, positioning ORLEN as a probable main participant within the regional olefin market, controlling about 40% of olefin manufacturing capability within the area.
Over the past eight years, the Group has additionally been intensively creating its retail section. In step with our technique, we intention to boast a portfolio of no less than 3,500 fashionable service stations working underneath the ORLEN model throughout Poland and the broader area by 2030. Because of quite a few investments and acquisitions, together with the takeover of Austria’s third-largest community of retail gas belongings, now we have already achieved greater than 98% of this goal.
Following the fast upscaling of our operations and because of our unwavering dedication to investments, the ORLEN Group has grow to be the most important taxpayer in Poland, contributing billions of z?oty to the state funds. “I take satisfaction in highlighting that ORLEN stands because the foremost company revenue tax contributor in Poland. Our tax legal responsibility for 2022 amounted to a considerable PLN 4.37 billion. Just below a decade in the past, in 2016, this determine stood at PLN 1.14 billion. This serves as compelling proof of the constructive trajectory we’re on. Within the first six months of 2023, the Group paid PLN 36.5 billion in numerous prices and dues to the state funds and native governments. This cash contributes to the modernisation and ongoing enhancement of the dwelling requirements of residents all through the nation,” notes Daniel Obajtek within the newest report.
One other efficient software supporting our Group’s enterprise targets is its sponsorship actions. In recent times, ORLEN has collaborated with skilled athletes and para-athletes and engaged in initiatives devoted to bettering the situations for practising sports activities for a complete of 300,000 youngsters and younger folks. Furthermore, the Firm has partnered with cultural establishments and sponsored essential neighborhood tasks.
To entry all the report “Multi-Power ORLEN. The Firm’s Development from 2016 to 2023”, please go to: orlen.pl/multi-utility-orlen-report
