Commentary on financial results


The 2022 results reported by the ORLEN Group demonstrate that the merger of ORLEN, Grupa LOTOS and PGNiG made sense and is already delivering tangible results. A powerful group has emerged from the transactions, whose strong foundations provide a guarantee of financial stability, lasting value and potential to further generate shareholder returns. ORLEN Group has a solid base for further growth and implementation of strategic projects. In 2022, ORLEN allocated a record PLN 19.6bn to what is the largest CAPEX programme in the Group’s history. This year, the figure will rise to as much as PLN 36bn.


The ORLEN Group’s sales revenues for 2022 were PLN 277,564m, up by PLN 146,223m year on year. The higher revenue reflects an 18% (y/y) increase in sales volumes measured in tonnes across all operating segments, as well as the inclusion of natural gas sales volumes of 62.1 TWh and CNG gas sales of 4.7 mcm within the new Gas segment in 2022. The increase in sales volumes is primarily due to the consolidation of companies of the former LOTOS Group and PGNiG Group.

Furthermore, higher crude oil prices, which rose by 43% (y/y), had an impact on revenue and subsequently on the prices of key products.

In 2022, gasoline prices went up by 53%, diesel oil prices by 81%, light fuel oil prices by 76%, jet fuel prices by 80%, heavy fuel oil prices by 25%, ethylene prices by 28%, and propylene prices by 28% year on year.

The effect of taking control of the former LOTOS Group and PGNiG Group companies in 2022 on items of revenue from sales of products and services, and on goods and materials for 2022 was PLN 25,345m and PLN 35,367m, respectively.

In 2022, earnings before depreciation and amortisation, net of the effect of crude price movements on the value of inventories (LIFO-based EBITDA) and net reversals of impairment losses on non-current assets1 reached PLN 53,242m.

Drivers of EBITDA + inventory valuation." data-popup>LIFO-based EBITDA evolution (y/y) [PLN million]

1 Net impairment losses on property, plant and equipment and intangible assets included mainly impairment losses on the ORLEN Upstream Group's exploration assets:

  • 2022: PLN (6,330)m;
  • 2021: PLN 811m.

The realised profit was PLN 39,088m higher year on year:

  • PLN 14,243m (y/y) – positive effect of macroeconomic factors, driven mainly by the impact of a USD (6.8)/bbl higher differential calculated based on the actual crude slate, and margins on light and medium distillates, olefins, PTA, PVC, and fertilizers. The positive effects were partially offset by a negative effect of measurement and settlement of a CO2 futures contract of PLN (4,905)m and hedging transactions of PLN (2,104)m (y/y), due to rising oil and product prices. In addition, higher prices of crude, natural gas and electricity, coupled with increased crude throughout (y/y), had a significant effect on the cost of captive consumption;
  • 577m (y/y) – the effect of an 18% (y/y) increase in the ORLEN Group’s sales volumes of 6,929 thousand tonnes, to 45,852 thousand tonnes, attributable mainly to the recognition of volumes of the former LOTOS Group (5,425 thousand tonnes) and of the former PGNIG Group in the Upstream and Gas segments (381 thousand tonnes). After elimination of the LOTOS Group's and PGNIG Group's volumes, total sales volumes were up by 3%, or 1,124 thousand tonnes;

PLN (24,268)m (y/y) – negative effect of other factors, including:

  • PLN 14,166m – recognition of gain on bargain purchase of the LOTOS Group and the PGNiG Group of PLN 5,928m and PLN 8,251m, respectively;
  • PLN 6,481m – consolidation of the operating results of the former LOTOS Group (after elimination of gain on bargain purchase);
  • PLN 3,444m – consolidation of the operating results of the former PGNiG Group (after elimination of gain on bargain purchase);
  • PLN (527)m (y/y) – effect of the change in the consolidation method of Rafineria Gdańska following the sale of 30% of its shares to Saudi Aramco in Q4 2022;
  • PLN (228)m (y/y) – no positive effect of the inventory write-downs to net realisable values recognised in 2021. The impact of inventory write-downs for the year ended December 31st 2022 was PLN (17)m (2021: PLN 211m);
  • PLN (184)m (y/y) – no positive effect of the prescription of liability claims of ORLEN UNIPETROL minority shareholders recognised in 2021;
  • PLN (156)m (y/y) – no positive effect of the change in the ownership structure of Baltic Power recognised in 2021;
  • PLN 1,272m (y/y) – other factors, including higher wholesale margins (y/y), with negative effect of overheads and labour costs.

Taking into account the net effect of the reversal of impairment losses of PLN (6,330)m (mainly related to refining assets of ORLEN, the ORLEN Unipetrol Group and the ORLEN Lietuva Group, as well as production assets of Grupa LOTOS Upstream and the ORLEN Upstream Group), the ORLEN Group's EBITDA + inventory valuation." data-popup>LIFO-based EBITDA in 2022 was PLN 46,912m.

The effect of oil price movements on the value of inventories reflected in EBITDA was PLN 1,097m. As a result, the ORLEN Group’s EBITDA for 2022 came in at PLN 48,009m.

After accounting for depreciation and amortisation of PLN (6,916)m, the ORLEN Group reported EBIT of PLN 41,093m for 2022.

In the reporting period, net finance costs were PLN (486)m and included mainly net currency exchange losses of PLN (643)m, net interest expense of PLN (494)m, and PLN 513m on settlement and measurement of financial instruments.

After income tax of PLN (6,963)m, the ORLEN Group posted a net profit of PLN 33,630m for 2022, an increase of PLN 22,442m (y/y).

As at December 31st 2022, the ORLEN Group’s equity amounted to PLN 136,959m, up by PLN 84,381m on the end of 2021. This increase was due mainly to the recognition of a net profit of PLN 33,630m for the 12 months of 2022, recognition of a PLN 46,146m worth of shares issued for the purpose of the mergers with the LOTOS and PGNiG Groups less costs of issue of PLN 52m, the effect of a PLN 5,435m change in the balance of hedge reserve, the effect of exchange differences on the translation of equity of foreign entities of PLN 573m, and the payment of dividend to ORLEN shareholders from retained earnings of PLN 1,497m in total.

Net financial debt of the ORLEN Group as at December 31st 2022 was PLN (2,258)m, a decrease of PLN (14,533)m on year-end 2021, mainly due to net outflows which included proceeds from and repayments of loans and borrowings as well as redemption of bonds for a total amount of PLN (11,424)m, a PLN (18,560)m increase in net cash, a PLN (27)m increase in short-term deposits, and a PLN 807m net effect of valuation and remeasurement of debt due to exchange differences and interest as a result of the recognition of debt of PLN 14,671m following the mergers with the LOTOS Group and the PGNiG Group.


In 2022, the ORLEN Group’s hiring policy was focused on recruiting top quality specialists for both day-to-day tasks and strategic projects. Acquisition of the former PGNiG Group (24,021 people) and LOTOS Group (4,291 people) in 2022 and expansion of the ORLEN Group’s energy, IT and retail areas led to a year-on-year increase in total workforce by 29,070 people, to 64,494 employees.

Segment results of the ORLEN Group

EBITDA + inventory valuation." data-popup>LIFO-based EBITDA by segment [PLN million]

Change in segment results [PLN million]

Delivery of investment plans

In 2022, ORLEN Group’s capital expenditure reached PLN 19,728m, up by PLN 9,838m (99.5%) on the 2021 amount of the capex.

Nearly 26% of the capital expenditure was spent in the Petrochemicals segment, 22% in the Refining segment, 22% in the Energy segment, 11% in the Upstream segment, 9% in the Gas segment and 7% in the Retail segment.


Increase in non-current assets in 2022 [PLN million]

Change in non-current assets by segment [PLN million]

Capital expenditure by market [%]

Major development projects carried out in 2022 included:

  • construction of a visbreaker unit in Płock;
  • construction of hydrocracking unit – Lithuania;
  • construction of second-generation bioethanol plant – ORLEN Południe;
  • construction of HVO unit (hydrogenation of vegetable oils) – Płock;
  • expansion of olefins production capacities at Płock;
  • expansion of fertilizer production capacities at Anwil;
  • upgrades of existing assets and connection of new customers at the ENERGA Group;
  • construction of CCGT Ostrołęka and CCGT Grudziądz;
  • construction of offshore wind farms in the Baltic Sea;
  • expansion of the service station and non-fuel sales networks;
  • launch of new services and products;
  • focus on the most promising fields in the Upstream segment.

Read also:


ORLEN Group 2022 Integrated Report

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