Poland’s energy titan, Orlen, is feeling the heat after the left-liberal government took charge, with its profits plummeting sharply.
For the first nine months of 2024, Orlen’s net profit sank by a staggering 17.03 billion zlotys (€4 billion), dropping to just 3.01 billion zlotys. As the largest company in Central and Eastern Europe, this decline is dragging down not only Orlen but also the Polish stock market. Its stock has tanked by 23% this year alone.
Former Orlen president and current Law and Justice (PiS) MEP Daniel Obajtek didn’t mince words, saying, “The destruction of Orlen is in full swing.”
Orlen’s third-quarter results were no better. The company’s sales revenue slid by over 11 billion zlotys year-on-year, mainly due to lower performance in refining, energy, and gas sectors, though petrochemicals, retail, and mining provided some relief. After tax charges, the company ended the quarter with a modest 188 million zlotys in net profit, down by 4.37 billion zlotys from the previous year.
Despite these grim figures, Orlen touted its efforts, highlighting a solid EBITDA LIFO operating profit amid tough macroeconomic conditions, including a 65% plunge in refining margins. CEO Ireneusz Fąfara emphasized that the company’s major investment initiatives, like the modernization of Poland’s northern power grid and progress on the Baltic Power farm, would help steer the company through rough waters.
However, Fąfara didn’t hold back in blaming Orlen’s previous leadership for the current mess, accusing them of leaving behind “multi-billion losses” due to poor management. He claimed that despite tough times, Orlen’s results were on par with last year’s.
Obajtek, unimpressed by the current leadership, fired back, saying, “The numbers speak for themselves.” He blasted the company’s retail results as evidence of “plundering Poles” and mocked Orlen’s decision to announce the results late in the evening, perhaps hoping the news would be buried. He also criticized the media’s tepid reaction, pointing out the lack of outrage over the company’s dire performance.
