Once again we achieved an all-time high EBITDA in the Retail segment, this time in excess of PLN 1.5bn. We owe this result to a 2.7% year-on-year growth in fuel sales volumes and improving non-fuel margins on the Polish and Czech markets. In our Polish operations, last year we focused on continued development of our offering through the launch of an additional 154 Stop Cafe and Stop Cafe Bistro outlets, growing the ORLEN Group’s share in the Czech market and maintaining our position on the mature German market as well as in Lithuania.
|UNIT||ORLEN GROUP||POLAND||GERMANY||CZECH REPUBLIC||LITHUANIA|
|Total number of service stations:||number||2, 679||1, 749||565||339||26|
|Premium||number||1, 684||1, 541||1||117||25|
|TOTAL||number||2, 679||1, 749||565||339||26|
|CODO / COCO||number||2, 130||1, 307||465||332||26|
|DOFO / DODO||number||549||442||100||7||-|
|TOTAL||number||2, 679||1, 749||565||339||26|
|UNIT||ORLEN GROUP||POLAND||CZECH REPUBLIC||LITHUANIA|
|Total||number||1, 558||1, 404||131||23|
|Stop Cafe||number||1, 027||905||99||23|
|Stop Cafe Bistro||number||531||499||32||-|
2015 saw considerable retail fuel price reductions driven by the drop in crude oil prices. Lower prices at service stations limited the appeal of economy chains. Premium stations started enjoying increased recognition among customers, who were more willing to use more expensive premium fuels, as well as non-fuel and food services. Price was no longer the determining factor in selecting the place for refuelling a car. As a result, the respective chains focused on developing their stores, especially food services.
There were no significant changes in the number of service stations in the ORLEN Group’s home markets. The market saw an increasing number of independent stations cooperating with international chains or joining associations. In 2015, TOTAL entered the Polish market with plans to launch roughly 100 franchise stations in the coming years.
With a network of 2 679 service stations in the premium and economy segments, the ORLEN Group is the undisputed leader on the fuel market in Central Europe. In Poland, our service stations operate under the ORLEN brand in the premium segment and the BLISKA brand in the economy segment. In the Czech Republic, we use the Benzina Plus and Benzina brands, respectively, and in Lithuania − the ORLEN and Ventus brands. On the German market, our service stations operate mainly in the economy segment under the STAR brand, complemented by more than a dozen of Famila supermarket stations.
As at the end of 2015, the ORLEN Group boasted a network of 1 749 service stations in Poland. The Company’s investment programme was centred on the construction of new service stations and motorway service areas, upgrading existing sites and rebranding BLISKA stations to ORLEN. We continued efforts to develop food services and new shop formats. Corporate fleet and loyalty schemes contributed to consolidating our leading market position and increasing the total volume of sold fuels by 3.8% year on year.
The continued development of the Polish road system poses an opportunity to expand the network with motorway service areas located alongside motorways and expressways. As at the end of 2015, there were 69 motorway service areas in Poland, of which 27 (39.1%) were operated by the ORLEN Group. Currently, 4 new such facilities are in the pipeline.
Since 2003, the ORLEN Group has maintained a presence on the largest retail fuels market in EUROPE – Germany. The STAR chain owned by the Group and managed by ORLEN Deutschland GmbH operated 565 service stations as at the end of 2015 and maintained a 6.0% share in the German retail market.
In the Czech Republic, the ORLEN Group managed to retain its leading position with respect to the number of service stations as Benzina managed 339 stations as at the end of 2015. Effective measures taken at the operating level and the optimisation of the retail price management process contributed to the growth of ORLEN’s share in the Czech retail market by 0.8 pp year on year, to 15.9%.
In Lithuania, the ORLEN Group operated 26 service stations as at the end of 2015 and in 2015 increased its market share in retail sales by 0.1 pp year on year, to 3.6%.
Total number of service stations
Share of the Polish retail fuel market [%]
The sales volume of the ORLEN Group Retail segment in 2015 increased by 2.7% year on year, to 7 986 thousand tonnes, as a result of improved fuel sales on the Polish, Czech and Lithuanian markets, with slightly decreased volumes on the German market.
The Group continued efforts to further grow its fleet sales in Poland in 2015, with volumes in this channel rising by nearly 4.5 pp year on year, to 30.2% of the segment’s total sales volume. In 2015, holders of Flota and OPEN DRIVE fleet cards could use the cards to make payments on all Polish motorways. A new card functionality was launched, offering full oversight of GPS monitoring parameters set against fuel expenses at ORLEN Group service stations. These solutions enable customers to generate savings in costs of operating and managing a car fleet and add to transaction security. The MikroFlota programme proved widely successful, achieving a 147% increase in sales volumes year on year, to 21m litres.
In 2015, revenue from sale of non-fuel products and services went up considerably, driven mainly by the further development of Stop Cafe and Stop Cafe Bistro chains, effective marketing support, as well as new additions to the range of offered products. In Q4 2015, a pilot programme was launched at two service stations to test Stop Cafe 2.0, a new food service format. As part of the initiative to develop new shop formats, tests of 10 convenience stores were initiated.
Sales of the Retail segment (PLNm/'000 tonnes)
|Light destillates 1)||12, 084||3, 000||13, 951||2, 916||(13.4%)||2.9%|
|Middle distillates 2)||15, 567||4, 986||18, 659||4, 860||(16.6%)||2.6%|
|Other 3)||3, 401||0||3, 303||0||(3.0%)||-|
|total||31, 052||7, 986||35, 913||7, 776||(13.5%)||2.7%|
1) Gasoline, LPG.
2) Diesel oil; light fuel oil sold by ORLEN Deutschland.
3) Other – includes revenue from non-fuel products and services.
Structure of the Retail segment’s revenue [%]
Sales of the Retail segment in the ORLEN Group's home markets ('000 tonnes)
|Poland||4, 785||4, 609||176||3.8%|
|Germany||2, 602||2, 621||-19||(0.7%)|
|total||7, 986||7, 776||210||2.7%|
Structure of the Retail segment's sales volumes on the ORLEN Group's home markets [%]
A major part of fuels sold on the Polish, Czech and Lithuanian markets were produced by the ORLEN Group’s Downstream segment, with the exception of the German market, where the ORLEN Group has no refining assets. The largest suppliers of the German company include local wholesalers: Deutsche BP AG, Holborn European Marketing Company Limited and TOTAL Deutschland GmbH.