May 22, 2025 [Reuters]- Polish energy group Orlen posted a 54% rise in first-quarter net profit on Thursday, as strong upstream performance helped offset lower sales and refining margins.
Its net result stood at 4.28 billion zlotys ($1.14 billion) in the first three months of 2025, below the 4.67 billion zlotys forecasted by analysts polled by Reuters.
The upstream segment had faced a one-off 7.7 billion zloty write-down last year, following the Polish government’s implementation of a windfall tax to fund energy price freezes for select consumers.
Orlen’s core profit adjusted for changes in value of its oil inventories, or EBITDA LIFO, rose 35% to 10.20 billion zlotys, up from 7.56 billion zlotys in the first quarter of 2024.
“Orlen’s 1Q25 is ahead of the consensus on operating side, mainly due to the strong upstream performance, while energy and consumer&products segments also performed well,” Erste analyst Tamas Pletser said in a note. Orlen’s shares opened around 1.2% higher.
Segments responsible for hydrocarbons extraction and distribution, as well as energy — where strategic development projects are being conducted — accounted for 80% of the Orlen’s operating profit.
The Energy business benefited from higher margins on electricity sales, improved distribution services and more favourable contract prices, Orlen said.
Similarly, the Consumers & Products segment saw positive effects from higher margins on sales of natural gas to regulated customers and increased margins on electricity sales.
However, lower refining margins on key products and weaker petrochemical margins, compounded by currency exchange effects, weighed on performance in the Downstream segment.
Orlen expects stable EBITDA LIFO in 2025, with higher gas prices and favourable distribution tariffs offsetting lower margins in refining and petrochemical businesses, it said in an earnings presentation.
Free Trial: Access 13,300 Tank Terminal and Production Facilities
13,300 tank storage and production facilities as per the date of this article. Click on the button and register to get instant access to actionable tank storage industry data
