The Orlen Group achieved PLN 1.383 billion in net profit in 2024, the concern reported on Tuesday. Orlen CEO Ireneusz Fąfara noted that the financial results were burdened with PLN 13.5 billion in write-offs, often resulting from earlier erroneous decisions.
Orlen's consolidated annual report published on Tuesday shows that in 2024 the Orlen Group achieved a net profit of PLN 1.383 billion, with PLN 20.969 billion in 2023.
In a letter to Orlen shareholders, the company's president, Ireneusz Fąfara, emphasized that the financial results were burdened with PLN 13.5 billion in write-offs, often resulting from earlier incorrect management decisions. “Despite this, we have generated very good operating results and implemented strategic development investments,” he noted.
Referring to the consolidated results for 2024, in a press release, Orlen emphasized that Energy and Gas accounted for nearly 80 percent of the Group's operating profit EBITDA, which amounted to PLN 35.5 billion before write-offs. The report for 2024 stated that the Orlen Group's EBITDA amounted to PLN 21.9 billion.
At the same time, the company calculated that in 2024 it had allocated PLN 32.4 billion for development investments. Among the key projects that are being implemented, Orlen mentioned, among others, the first offshore wind farm Baltic Power, two gas power plants in Ostrołęka and Grudziądz, a project to modernize and build over 20 thousand km of power grids, as well as investments in onshore renewable energy sources and oil and natural gas extraction.
“Behind us is a year of consistent building of the Group's credibility and value and rebuilding its corporate culture,” assessed the president of Orlen. Fąfara emphasized that in 2024, the Group achieved record electricity production from gas and renewable energy sources, with “further megawatts from two new gas power plants and the first Polish offshore wind farm to flow into the network next year.”
The head of Orlen also pointed out that “the dynamic development of low- and zero-emission energy is also a path to the transformation of refinery and petrochemical production and the development of alternative fuels.” He also pointed out that “in times of geopolitical instability, we need security and resilience to develop.” He noted that the company's strategy published in 2024, “Energy of Tomorrow Starts Today,” assumes “above all, strong development of gas extraction and energy, supported by renewable sources.”
“The past year has been a time of important, strategic decisions that will determine the competitiveness of the concern in the coming years,” Fąfara said. As an example, he cited the decision to end the unprofitable Olefiny III project and use part of the existing infrastructure for the New Chemistry project, based on new technological, operational and business assumptions, as well as expanding the portfolio of renewable energy sources by as much as 2/3 from 0.9 to 1.5 GW.
Among the strategic decisions, Fąfara also mentioned the integration of the Orlen Group and the divestment of companies whose activities are unrelated to the core business of the concern.
“The Orlen Group entered 2025 efficient, with a clearly defined path of value growth, based on the highest standards of corporate governance. It is a pragmatic group that invests only in projects that actually build value and has a flexible approach to investment outlays. Finally, it is a group that operates in a transparent manner and maintains financial discipline,” wrote the president of Orlen in a letter to shareholders.
As reported by the company, in 2024, the Orlen Group produced 2.4 TWh of energy from renewable sources and 9.3 TWh of energy from gas, which is enough to power around 6.5 million households. Gas and renewable sources accounted for 70% of energy production in the Orlen Group. At the same time, in 2024, the company's total natural gas production in Poland and abroad increased to 8.6 billion cubic meters, which was 20% more than a year earlier. The increase in production was possible – as Orlen noted – primarily thanks to the launch of new deposits on the Norwegian Continental Shelf.
The company emphasized that in the area of refining and petrochemical production it recorded “a stable level of crude oil processing, focusing on maintaining a diversified supply portfolio”. It recalled that in 2024, among others, an agreement was signed with bp for the supply of oil from the geographically close North Sea, providing approx. 15 percent of the demand of the entire Orlen Group.
Orlen also mentioned that in the retail segment, the concern recorded a record volume of fuel sales, achieving the highest sales in history in Poland and the Czech Republic. The concern also launched 135 new alternative fueling stations, which means that it closed the year with 869 such points.
Summing up 2024, Orlen recalled that the Group's management board had previously recommended a record dividend of PLN 6 per share for this period. In the report, Orlen recalled that, in accordance with the Orlen Group's strategy until 2035, the progressive dividend policy assumes an annual increase in the guaranteed dividend, with the final decision on its amount being made by the General Meeting.
Orlen's dividend for 2023 amounted to PLN 4.15 per share.
The Orlen Group is a multi-energy concern that owns refineries in Poland, the Czech Republic and Lithuania, as well as a network of petrol stations, including in Germany, Slovakia, Hungary and Austria. It is also developing the oil and gas extraction segment, the petrochemical segment, and the energy segment, including renewable energy sources. It also plans to develop nuclear energy based on small, modular SMR reactors. (PAP)
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