ORLEN Group – Key events in 2015

  • Acquisition by PKN ORLEN of a 100% equity interest in Przedsiębiorstwo Inwestycyjno – Remontowe RemWil, a former ANWIL Group company.
  • Launch of operations by ORLEN Południe.
  • Merger of ORLEN OIL and Platinum OIL.
  • Acquisition of ORLEN Asfalt’s production assets by PKN ORLEN.
  • New laboratories at ORLEN Laboratorium.
  • By decision of the President of the Energy Regulatory Office of Poland, PKN ORLEN secures a 10-year licence for trade in liquid fuels with foreign partners.
  • IKS Solino completes extension of the Góra Underground Crude Oil and Fuel Storage Facility.
  • Defibrillators at ORLEN service stations in Płock.
  • Unipetrol obtains final clearance from the Czech Antitrust Office for the acquisition of a 32.445% equity interest in Česká Rafinérská from ENI.
  • The Stacja z Paczką ('Station with a Parcel') courier service available at more than 900 ORLEN service stations – enabling customers to send and receive parcels, including purchases from e-stores.
  • The Vitay app with Yanosik, Poland’s largest mobile community of drivers.
  • Cooperation agreement signed by Płocki Park Przemysłowo-Technologiczny (the Płock Industry and Technology Park) with the Cardinal Wyszyński University in Warsaw.
  • PKN ORLEN’s Annual General Meeting resolves to pay out dividend at PLN 1.65 per share.
  • TriOil Resources Ltd., a Canadian subsidiary of the ORLEN Group, is renamed ORLEN Upstream Canada Ltd.
  • Extension of the hydrogeological monitoring system at the Mogilno Salt Mine owned by IKS SOLINO.
  • Adoption of a plan to merge ORLEN PetroTank Sp. z o.o. with ORLEN Paliwa Sp. z o.o.
  • Closing of the acquisition of a 32.445% equity interest in Česká Rafinérská by Unipetrol from ENI.
  • ORLEN Upstream enters into a joint operations agreement with PGNiG S.A. for the performance of research and analyses in eight licence areas in the Province of Rzeszów.
  • The BLIK mobile payment system available at 1300 service stations in Poland.
  • The first electric car quick charge ports opened in the Star service station chain in Germany.
  • Merger of ORLEN Paliwa and ORLEN PetroTank.
  • Repurchase of mandatory stock by PKN ORLEN from Cranbell.
  • Launch of the ORLEN Group Central Laboratory, one of Europe’s most advanced laboratory facilities.
  • Adoption of a plan to merge ORLEN Paliwa Sp. z o.o. with ORLEN Gaz Sp. z o.o.
  • Publication of PKN ORLEN’s first Integrated Report for 2014.
  • Construction of a CCGT unit launched at the Płock production plant.
  • Uniperol and Technip sign a contract for construction of a new polyethylene unit (PE3) at the Litvínov plant.
  • Acquisition by ORLEN Upstream of 100% equity interests in two licence areas in the provinces of Kraków and Rzeszów from DEA Deutsche Erdoel AG.
  • Acquisition by ORLEN Deutschland of 13 SUN service stations from Germania Petrol.
  • ORLEN Upstream acquires a 100% equity interest at FX Energy.
  • ORLEN Upstream Canada concludes and agreement which opens way to acquisition of a 100% equity interest at Kicking Horse Energy.
  • Launch of PKN ORLEN’s crowdsourcing project relating to technical innovations.
  • Launch of ORLEN Upstream’s exploration project Miocen in south-eastern Poland.
  • ORLEN Paliwa and ORLEN GAZ merge to create one of Poland’s largest sales organisation – ORLEN Paliwa.
  • Launch of a pilot programme to test long-term storage of petrol in salt caverns at IKS Solino.
  • Agreement with PKP Cargo on sale of ORLEN Group’s railway assets.
  • Agreement with Trans Polonia on disposal of ORLEN Transport.
  • Wojciech Jasiński appointed President of the PKN ORLEN Management Board.
  • PKN ORLEN signs an annex to the long-term crude oil supply contract with Rosneft Oil Company.
  • PKN ORLEN signs a long-term crude oil supply contract with Tatneft Europe AG.
  • ORLEN Upstream acquires a 100% equity interest at FX Energy.
  • ORLEN Upstream Kanada Ltd acquires a 100% equity interest at Kicking Horse Energy Inc., a production company.
  • Launch of the Flue Gas Desulfurization Unit at the Płock Production Plant.
  • Start-up of the CCGT unit at Włocławek.

2014-2015 financial highlights

    2015 2014
I. MACROECONOMIC DATA (average in the period)      
Brent crude USD/bbl 52.4 98.9
Urals crude USD/bbl 51.0 97.2
WTI crude USD/bbl 48.8 94.0
Brent/Urals differential USD/bbl 1.8 1.7
Model Refining Margin1) USD/bbl 8.2 3.4
Model petrochemical margin1) EUR/t 968 781
Model Downstream Margin1) 2) USD/bbl 13.8 11.4
Volume of crude oil processed across the ORLEN Group, including: thousand tonnes 30, 908 27, 276
Volume of crude oil processed at PKN ORLEN thousand tonnes 15, 674 14, 278
Volume of crude oil processed at the Unipetrol Group thousand tonnes 6, 495 5, 130
Volume of crude oil processed at ORLEN Lietuva thousand tonnes 8, 486 7, 497
Sales of products and merchandise, including: thousand tonnes 38, 676 35, 740
Downstream thousand tonnes 30, 380 27, 706
Retail thousand tonnes 7, 986 7, 776
Upstream thousand tonnes 310 258
3.1. Statement of income and other comprehensive income      
Revenue PLNm 88, 336 106, 832
LIFO-based EBITDA before impairment losses, including: 3) 4) PLNm 8, 738 5, 213
Downstream PLNm 7, 776 4, 210
Retail PLNm 1, 539 1, 416
Upstream PLNm 44 152
Corporate Functions PLNm (621) (565)
LIFO-based EBITDA, including: PLNm 7, 745 (147)
Downstream PLNm 7, 640 (852)
Retail PLNm 1, 539 1, 440
Upstream PLNm (808) (170)
Corporate Functions PLNm (626) (565)
LIFO adjustment PLNm (1, 510) (2, 573)
EBITDA, including: PLNm 6, 235 (2, 720)
Downstream PLNm 6, 130 (3, 425)
Retail PLNm 1, 539 1, 440
Upstream PLNm (808) (170)
Corporate Functions PLNm (626) (565)
D&A PLNm 1, 895 1, 991
EBIT PLNm 4, 340 (4, 711)
Net profit (loss) PLNm 3, 233 (5, 828)
3.2. Statement of financial position      
Total assets PLNm 48, 137 46, 725
Equity PLNm 24, 244 20, 386
Net debt PLNm 6, 810 6, 720
3.3. Consolidated statement of cash flows      
Net cash from operating activities PLNm 5, 354 3, 187
Net cash provided by/(used in) investing activities, of which: PLNm (4, 096) (4, 020)
CAPEX PLNm 3, 183 3, 788
Net cash provided by/(used in) financing activities PLNm (2, 866) 2, 083
Free cash flows 5) PLNm 1, 258 (833)
3.4. Key ratios      
Return on average capital employed (ROACE) 6) % 15.2 1.7
LIFO-based return on average capital employed (LIFO ROACE) 7) % 19.5 8.5
Net financial leverage 8) % 28.1 33.0
Net earnings/(loss) per share of Parent’s shareholders (EPS) PLN/share 6.63 (13.59)

1) For definition see 'Industry and Financial Glossary'.

2) The Model Downstream Margin began to be calculated in 2014 following the changes in the methods of management of the ORLEN Group’s refining, petrochemical and energy business and the formation of the integrated Downstream segment.

3) For the purpose of the financial statements, the ORLEN Group measures its inventory at weighted average cost, in accordance with International Financial Reporting Standards. This method defers the recognition of the impact of an increase or decrease in crude oil prices relative to the price of finished goods. In consequence, an increase in crude oil prices has a positive effect on reported performance, while a decrease produces an adverse effect. As a result of using the LIFO method for inventory valuation, production costs are measured at cost of purchased crude oil, and the reported performance better reflects the actual financial standing.

4) The 2014 and 2015 operating results take account of the impairment losses on assets of PLN (5 360m) and PLN (993m), respectively.

5) Free cash flows = net cash from operations + net cash provided by/(used in) investment activities.

6) ROACE = after-tax operating profit from the last four quarters before impairment losses on non-current assets / average capital employed (equity + net debt) in the last four quarters.

7) LIFO ROACE = LIFO-based after-tax operating profit from the last four quarters before impairment losses on current assets / average capital employed (equity + net debt) in the last four quarters.

8) Net financial leverage = net debt / equity, as at period end.

See also

Letter from the President of the Management BoardThe ORLEN Group and its environment

see more

Summary of CSR strategy implementation in 2015Responsible company

see more

ORLEN Group's awards and distinctions in 2015Responsible company

see more

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