Orlen reports record profits and strategic energy investments

ORLEN’s EBITDA LIFO rose by 40%, and net profit increased by over 50% year-on-year, reaching PLN 11.6 billion and PLN 4.3 billion respectively. Upstream, distribution, and energy operations accounted for 80% of the operating profit, driven by key projects such as the Baltic Power offshore wind farm, new gas fields in Norway, and gas-fired power plants. In Q1 2025, the company invested PLN 6.2 billion in strategic development while reducing net debt by over PLN 8 billion quarter-on-quarter. ORLEN also expanded its VITAY app user base and added new retail gas and electricity customers. <br> <br>

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Today | 09:30 | Source: Gazeta Morska | Prepared by: Kamil Kusier | Print

fot. Orlen

– Strong financial results reflect the consolidation of our operations and the execution of our ambitious 2035 Strategy. We focus on strategic goals such as securing domestic and imported gas crucial for Poland’s energy transition, decarbonising our generation assets, investing in energy and gas distribution networks, and expanding renewable capacity. The nearly 50% increase in our share price since the start of the year — the highest in our integrated Group’s history — confirms market confidence in our direction – says Ireneusz Fąfara, ORLEN CEO.

n the first quarter of 2025, the ORLEN Group achieved:

Revenues of PLN 73.5 billion
LIFO EBITDA of PLN 11.6 billion
Operating cash flows of PLN 15.7 billion

Upstream & Supply segment:

EBITDA of PLN 5.3 billion – an increase of PLN 2.7 billion year-on-year
Result driven by higher wholesale gas prices and the absence of charges to the Price Difference Payment Fund
Hydrocarbon production of approx. 210 thousand boe/d, including:
- 73% gas (mainly from Norwegian and Polish fields)
- 27% oil and LNG

Energy segment:

EBITDA of PLN 4.3 billion – up by PLN 614 million year-on-year
Improved results from:
- Distribution networks (electricity and gas) – PLN 541 million
- District heating – PLN 145 million
Total installed capacity: 6.1 GWe
Electricity generation: 5.1 TWh
Nearly 65% of electricity generated from low- and zero-emission sources

Downstream segment:

LIFO EBITDA of over PLN 1.2 billion
9.2 million tonnes of crude oil processed – comparable to Q1 2024
Weaker petrochemicals environment and normalized refining margins had key impact

Consumers & Products segment:

EBITDA of PLN 1.2 billion – an increase of PLN 963 million year-on-year
Segment integrates the sale of gas, electricity, and fuels to end-users
Results supported by operational excellence and increased gas sales
Fuel and non-fuel retail sales remained stable year-on-year
ORLEN’s network now includes:
- Over 3,500 fuel stations
- More than 2,700 non-fuel retail outlets
- Nearly 880 alternative refueling stations across six European markets

– It was a very strong quarter for the ORLEN Group and our shareholders, both operationally and financially. We achieved a 40% increase in LIFO EBITDA. It is also worth highlighting the improved operating cash flow, which reached nearly PLN 16 billion. These results prove that the ORLEN Group performs very well despite ongoing market volatility – says Magdalena Bartoś, Vice President of the ORLEN Management Board for Finance.

Operating cash flow: PLN 15.7 billion
Net debt to EBITDA ratio: among the lowest in the entire sector
Credit ratings:
- Moody’s: A3
- Fitch Ratings: BBB+

ORLEN is consistently investing in strategic security and value creation:

New gas field discovered in the Wielkopolska region – resources estimated at nearly 250 million cubic meters
Strategic cooperation with Ukraine’s Naftogaz: 3 contracts signed for a total of 300 million cubic meters of U.S.-sourced LNG
ORLEN's LNG fleet expanded with 2 new carriers – 8 vessels planned in total
Partnership with Equinor (Norway) to develop CCS transport and storage on the Polish part of the Baltic Sea

Innovation and energy transition investments:

Joint research with Warsaw University of Technology (Płock branch) and AGH University of Krakow to enhance synthetic fuel production
Market dialogue and research initiated on renewable and low-emission ammonia – to be used for fertilizer production and as a hydrogen source for sustainable aviation fuels
Corporate venture fund ORLEN VC invested in Norwegian company Hystar – aiming to produce 1.5 GW of high-efficiency PEM electrolyzers annually from 2027

Key energy projects progressing under the ORLEN2035 strategy:

Baltic offshore wind farm: first MWh of energy to be delivered in 2026
Advanced preparations for turbine and subsea cable installations underway
New operations and service base opened in Łeba – will support 30-year lifecycle of the offshore project

Further development:

Baltic East offshore wind project (1 GW capacity), adjacent to Baltic Power, in advanced environmental permitting phase
Supplier dialogues ongoing to maximize local content for the investment

Low-emission energy investments:

CCGT projects in Ostrołęka and Grudziądz are 90% complete – scheduled for commissioning in H1 2026
Preparations underway for:
- Grudziądz II and Gdańsk CCGT projects – for capacity market supplementary auction (August 2025)
- Siekierki CCGT project – for main capacity auction (December 2025)

Network modernization:

PLN 7.5 billion in preferential financing from the National Recovery Plan (KPO) secured for energy grid upgrades in northern and central Poland
Since the beginning of 2025:
- 300 MW of renewables connected to the grid
- 400 km of power lines built or modernized
- Over 12,000 new customers connected in areas serviced by Energa Operator

Daniel Obajtek criticizes Orlen's Q1 results: “This must be a joke”

Daniel Obajtek, former CEO of ORLEN Group, has publicly responded to the company’s Q1 2025 earnings release, expressing strong skepticism over the optimistic tone presented by current management.

- The CEO, Mr. Fąfara, is boasting about ORLEN’s strong results. This must be a joke, Daniel Obajtek stated. - The company’s profit in the first quarter of 2025 is over PLN 5 billion lower compared to Q1 2023 - a period fully managed by my board.

Obajtek also pointed to a sharp increase in profit from the retail segment, claiming it reflects continued margin pressure on consumers.

- Let’s not forget: PLN 666 million in retail profits versus PLN 233 million in the same period of 2023. Clearly, ORLEN continues to benefit from high fuel prices, even in an environment of cheap oil and a weak dollar, he added.

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