Orlen has reported a surge in second-quarter (Q2) profits, with last in, first out (LIFO)-based earnings before interest, taxes, depreciation and amortisation (EBITDA) nearly doubling year-on-year to 9.2bn zlotys.
The Polish energy group’s net profit for the period reached 1.8bn zlotys, bolstered by strategic investments in the energy transition totalling nearly 14bn zlotys in the first half of 2025.
Adjusted for changes in the value of its oil inventories (EBITDA LIFO), Orlen’s core profit stood at 7.72bn zlotys, despite the company booking 1.49bn zlotys in write-downs, specifically in the upstream and downstream segments.
The group’s revenue in Q2 2025 was 60.7bn zlotys, with an operating cash flow of 10.5bn zlotys.
Orlen’s upstream and supply segment reported EBITDA of 3.5bn zlotys, an increase of 4.5bn zlotys year-on-year.
Hydrocarbon production averaged 182,000 barrels of oil equivalent per day, with more than 70% being natural gas, primarily from fields in Poland and Norway.
Backed by strong crude throughput and favourable macroeconomic conditions, Orlen’s downstream segment reported LIFO-based EBITDA of 2.2bn zlotys.
The group’s refineries processed 9.8 million tonnes (mt) of crude oil, a 5% increase compared to the previous year.
The energy segment continued to demonstrate strength, generating EBITDA of 2.2bn zlotys, up by 368m zlotys year-on-year, owing to a consistent investment initiative.
The consumers and products segment saw a year-on-year increase of 363m zlotys, delivering EBITDA of 2bn zlotys in Q2.
Orlen Management Board vice-president Magdalena Bartoś said: “When reviewing our results, it is important to highlight the solid contribution from each segment, which confirms the resilience of our business model to market volatility and seasonal fluctuations.
“Strong operating cash flows support both our investment projects and our dividend policy. On 1 September, we will pay the highest dividend in Orlen’s history.”
The company’s operating cash flow for the quarter amounted to 10.5bn zlotys.
In June, Orlen successfully garnered 2.5bn zlotys via a green eurobond issue, which was 2.5-times oversubscribed.
The group has also eliminated Russian crude from its supply chain and increased natural gas supply volumes from Ukraine’s Naftogaz to more than 430 million cubic metres.
Orlen has expanded its liquid petroleum gas terminal in Szczecin to an annual capacity of 400,000 tonnes and introduced Sustainable Aviation Fuel to its product range.
The company is modernising power grids in northern Poland with a 7.7bn zloty investment from the National Recovery Plan.
Despite a one-off write-down of 7.7bn zlotys in the previous year due to a government windfall tax, Orlen’s upstream business has rebounded, and its energy business has reported increased profits from gas and electricity distribution.
However, the downstream business’s profits have declined due to a less favourable macro environment, with refining margins dropping to $11.3 per barrel.
Orlen anticipates its full-year LIFO-based EBITDA in 2025 will surpass that of 2024.
