- risk of changes in refining and petrochemical margins on sale of products and Brent differential fluctuations;
- risk of changes in crude oil, gas and products prices related to the time mismatch;
- risk of changes in CO₂ emission rights prices;
- risk of changes in gas prices;
- risk of changes in crude oil and refinery product prices related to the obligation to maintain mandatory reserves of crude oil and fuels;
- risk arising from firm liabilities and receivables, including the provision of pricing formulas based on a fixed price over time to selected customers
- the risk of fluctuations in electricity purchase prices and certificates of origin on the wholesale market

Based on planned cash flows.

Market risk management policies and hedging strategies, which define principles of measurement of individual exposure, parameters and the time horizon of risk hedging and hedging instruments.

Market risk management is performed using derivatives, which are used only to reduce the risk of changes in fair value and the risk of changes in cash flows.
By setting the market valuation of instruments, the Group uses its own recording systems and valuation of derivatives as well as relies on information obtained from market-leading banks and brokerage companies or information services. Transactions are concluded only with reliable partners, allowed to participate in transactions as a result of the application of appropriate procedures and signing of appropriate documentation.

- economic currency exposure resulting from inflows decrease by expenses indexed to or denominated in other than the functional currency; 
- currency exposure resulting from investment or probable liabilities and receivables in foreign currencies;
- balance sheet exposure resulting from assets and liabilities denominated in foreign currency including foreign currency debt incurred under established eurobond and hybrid bonds programmes

Based on planned cash flows.



Based on analysis of balance sheet positions.

Risk of unforeseen shortage of cash or lack of access to financing sources, both in the horizon of short and long-term, leading to temporary or permanent loss of ability to pay liabilities resulting in the need to obtain financing on less favourable terms or the loss of potential benefits arising from excess liquidity.

Based on planned cash flows from operating, investing and financing activities in short and long-term horizon.

Liquidity risk management policy, which defines rules of reporting and consolidation of liquidity of ORLEN and ORLEN Group entities. Group carries out a policy of its financing sources diversification and uses range of tools for effective liquidity management. The Group also monitors on an ongoing basis the level of credit covenants and their estimated level in long-term periods .

Risk of bankruptcy of domestic or foreign banks, in which accounts cash is kept or in which cash is invested according to the on-balance-sheet exposure of the financial assets held: cash and cash equivalents.

Regular review of credit rating of banks and setting limits on concentration of funds.

Management based on principles of surplus cash management, which determine possibility of granting quotas for individual banks made on the basis of, among others, ratings and reporting data. Cooperation mainly with crediting banks.

Risk of unsettled receivables for delivered products and services by customers with whom trade transactions are concluded with deferred payment.

Analysis of creditability and solvency of customers.

Management based on procedures and policies adopted for management of trade credit and debt recovery including the determination of limits and hedging.

Bitumen sales at fixed price

Brent / Fuel Oil / Gas Oil risk component, which is a part of an unconditional and binding commercial commitment from concluded sale transaction at a fixed price

fair value hedge

Timing mismatch on crude oil purchases, which is hedged to the planned period of crude oil processing and product sales, as well as oversized inventories

Brent DTd risk component, which is part of future crude oil purchase; an item identified based on crude oil deliveries from the month of execution/delivery of hedging transaction in the order in which they were received

cash flow hedge

Brent risk component of diesel sales; position identified from sales invoices issued in the month of execution/delivery of the hedging transaction in order of issue

Sales of goods denominated in foreign currencies/indexed to foreign currencies

Invoices for sales denominated in foreign currency or indexed to exchange rate of foreign currency issued on the day of Forward transaction and subsequent days in the order in which they were issued; nominal value in foreign currency up to the nominal value of hedging instrument in foreign currency and the EUR/PLN and EUR/USD currency component resulting from projected future gas sales revenues.

cash flow hedge

Deliveries for purchases denominated in foreign currencies or indexed to a foreign currency

Deliveries for sales denominated in foreign currency or indexed to exchange rate of foreign currency received on the day of Forward transaction and subsequent days in the order in which they were delivered; nominal value in foreign currency up to the nominal value of hedging instrument in foreign currency and hedging of future highly probable cash flows from gas purchases in foreign currency.

cash flow hedge

Purchase of LNG at indexed prices

Volume of LNG purchases at Henry Hub index prices

cash flow hedge

Sales and purchases of gas at indexed prices

Risk component arising from gas sales and purchase contracts at prices based on gas indices from the European market linked to the TTF index (TTF index component)

cash flow hedge

CO₂ emission allowance price hedging

Securing the purchase price of the CO2 allowances resulting from the physical purchase of allowances required to fulfil the CO₂ clearing obligation

cash flow hedge