- Poland’s Orlen Q1 2025 net profit rose 54% to 4.28 billion zlotys, driven by strong upstream performance that offset weaker refining and petrochemical margins.
- The energy and consumer segments delivered solid gains, accounting for 80% of operating profit as higher electricity margins and improved gas sales supported overall performance.
Polish energy group Orlen reported a 54% increase in first-quarter net profit on Thursday, Mayy 22. This was driven by robust upstream performance, which helped cushion weaker sales and lower refining margins.
The company posted a net profit of 4.28 billion zlotys ($1.14 billion) for Q1 2025, falling short of the 4.67 billion zlotys expected by analysts surveyed by Reuters.
Orlen’s adjusted core profit (EBITDA LIFO-earnings before interest, taxes, depreciation, and amortisation), which excludes inventory valuation effects, rose 35% year-on-year, reaching 10.20 billion zlotys, up from 7.56 billion zlotys in Q1 2024.
Orlen’s Q1 2025 results exceeded operating expectations due to strong upstream performance. The energy and consumer & products segments also delivered solid results,” said Erste Group analyst Tamas Pletser in a note. Following the release, Orlen shares opened 1.2% higher.
Central to the company’s long-term strategy, the upstream and energy segments contributed roughly 80% of Orlen’s operating profit in the quarter. The energy business benefited from improved electricity margins, better distribution services, and favourable contract pricing.
In the Consumers & Products segment, the company reported increased margins on natural gas sales to regulated customers and more substantial electricity sales margins.
However, Orlen’s Downstream segment struggled due to lower refining margins on key products, weaker petrochemical prices, and negative currency exchange impacts.
Despite these challenges, Orlen said it expects stable EBITDA LIFO for the year, noting that rising gas prices and favourable distribution tariffs should offset pressure from lower refining and petrochemical margins.