Biznes Fakty
Orlen showed results. Shares up
The net profit of the Orlen Group for 2024 reached PLN 7.95 billion, a decrease from PLN 20.97 billion the previous year, as stated in a stock exchange announcement on Thursday. The management board proposes a dividend of PLN 6 per share. Orlen’s stock price has risen by over 2 percent on the exchange.
For 2024, the Orlen Group reported revenues of PLN 296.95 billion, compared to PLN 372.77 billion in 2023.
The largest dividend ever
The announcement also mentioned that the Orlen management board recommends distributing the largest dividend in the company’s history from the net profit for 2024. This amount is set at PLN 6 per share, up from PLN 4.15 the previous year. Overall, PLN 6.966 billion will be allocated for dividend distributions.
„In line with the dividend policy declared in January, the Orlen management board has recommended a record dividend payment for 2024 of PLN 6 per share. This figure comprises a guaranteed progressive dividend of PLN 4.5 per share and an extra bonus of PLN 1.5 per share, which is contingent on the company’s financial performance and results,” the explanation detailed.
Company revenues
According to reports, the Orlen Group’s sales revenues for the 12 months of 2024 totaled PLN 296.947 billion, reflecting a decrease of PLN 75.820 billion compared to 2023.
„The decline in sales revenues in the refining sector was PLN 16.893 million (y/y), primarily attributed to a 5 percent (y/y) drop in sales volume to 31,410 thousand tonnes, along with decreases in market prices of key products in this sector, including gasoline by 9 percent (y/y), diesel by 10 percent (y/y), aviation fuel by 10 percent (y/y), and light heating oil by 9 percent (y/y),” the company reported.
Sales revenues in the energy sector dropped by PLN 10.39 billion year-on-year, influenced by a 12 percent decline in sales volumes, which reached 28.5 TWh, and a 19 percent year-on-year decrease in electricity prices on the Polish Power Exchange.
Additionally, a year-on-year increase of PLN 760 million in sales revenues within the petrochemical sector was due to a 9 percent rise in sales volumes to 4 million 788 thousand tonnes, along with increased prices for major products in this segment, such as ethylene and propylene by 1 percent, benzene by 11 percent, polyethylene by 5 percent, and polypropylene by 3 percent. Conversely, paraxylene prices fell by 10 percent.
As reported, there was a PLN 4.65 billion increase in sales revenues in the retail segment year-on-year, attributed to an 11% rise in fuel sales volumes, totaling 11.308 million tonnes.
The mining segment saw an increase in sales value by PLN 882 million year-on-year, driven by a 23% rise in sales volume, largely due to higher production and sales of hydrocarbons resulting from the consolidation of the new mining company KUFPEC Norway AS.
It was noted that despite a 2 percent year-on-year increase in sales volumes in the gas segment, which reached 303.0 TWh, sales revenues declined by PLN 54.967 billion year-on-year, largely due to lower realized sales prices of natural gas compared to the previous year.
The company also reported that the Orlen Group’s net profit for the fourth quarter of 2024 alone was PLN 4.6 billion, which is five times greater than the PLN 923 million recorded a year earlier.
„The Mining and Gas segments were the main contributors to this result, collectively generating 70% of EBITDA profit. The refining and energy segments also posted positive results, with profits increasing by approximately PLN 2 billion (y/y). Petrochemical sales rose by 19%, and retail saw an increase in market share, achieving the highest volume figures in history for the fourth quarter,” the press release noted.
„Q4 2024 was an excellent quarter for ORLEN. We achieved outstanding operational outcomes. We finalized a strategy that was well-received in the market, contributing to a double-digit rise in the company’s share price. We generated substantial cash flow, enabling us to offer shareholders a record-high dividend,” stated Ireneusz Fąfara, the president of Orlen, as quoted in the release.
