Polish oil giant doubles its H1 profits y/y

“In the first half of 2021, PKN Orlen recorded a profit of PLN 4.116 bn compared to PLN 2.123 bn a year ago,” the Polish oil giant reported on Thursday, presenting its six-month results. The Group’s sales revenues were over a third higher than a year ago.

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It was reported that revenues amounted to almost PLN 54 bn (EUR 11.76 bn) compared to 39 bn (EUR 8.49 bn) in the first half of 2020. EBITDA (earnings before interest, tax, depreciation and amortisation) amounted to almost 7.7 bn PLN (EUR 1.68 bn) against slightly over PLN 5.1 bn (EUR 1.11 bn) a year ago.

In the second quarter of this year, PKN Orlen recorded a historically record-high LIFO EBITDA (reported EBITDA + inventory valuation) operating result of PLN 3.2 bn (EUR 0.7 bn). The company’s profit amounted to PLN 2.2 bn (EUR 0.48 bn), and the year-on-year sales revenues increased by 73 percent.

The company emphasised that the energy and petrochemical segments had the greatest impact on the results of the Orlen Group in the second quarter of this year.

It was also stressed that the petrochemical segment generated LIFO EBITDA of over PLN 1 bn (EUR 220 mln), which means a 4-fold increase compared to the same quarter last year.

As was pointed out in the company’s press release, more than half of the Group’s sales revenues came from foreign markets.

“The record-breaking financial figures booked by the ORLEN Group prove that our vision of turning into a strong multi-utility player diversified across multiple sectors is coherent, effectively pursued and designed to address all the contemporary challenges faced by Oil and Gas,” Daniel Obajtek, CEO of PKN ORLEN, emphasised in a press release.

“Despite the challenging environment, our results were even better than in the record years of 2015-2018, which were marked by strong macroeconomic tailwinds for the refining market,” he said, pointing out that “as a result, we are on firm financial footing keeping us safely on track to meet our business objectives.”

“PKN Orlen, as the leader of the energy transformation, is now engaged in its largest investment programme geared towards strengthening all business areas,” Mr Obajtek announced.