PKN Orlen recorded PLN 3,177 million of consolidated net profit attributable to shareholders of the parent company in Q4 2021 compared to a loss of PLN 2 million a year earlier, the company said in a report.
Net result: increase by PLN 3.2 billion (y / y), including: higher EBITDA LIFO result by PLN 1.5 billion, lower impairment loss on assets by PLN 0.9 billion, higher LIFO effect by 1.4 billion PLN, higher depreciation by PLN (-) 0.2 billion, higher result on financial activities by PLN 0.4 billion and higher income tax by PLN (-) 0.8 billion, according to results from the report.
The operating profit amounted to PLN 3,973 million, compared to PLN 420 million profit a year earlier. The EBITDA result amounted to PLN 5 560 million compared to PLN 2 675 million a year earlier.
“Financial and operational results [in 2021]:
* LIFO-based EBITDA: PLN 14.2bn; increase by PLN 5.8 billion (y / y)
* Downstream margin: $ 8.6 / bbl; increase by 18% (y / y)
* Refining margin with B / U differential: 4.3 USD / bbl; increase by 54% (y / y)
* Petrochemical margin: EUR 1,273 / t, increase by 52% (y / y)
* Crude oil throughput: 29.9 mt; increase by 1% (y / y) / 85% capacity utilization
* Sales: 38.9 mt; increase by 2% (y / y) “- we read further in the presentation.
The EBITDA LIFO result increased by PLN 1.5 billion (y / y) as a result of the positive macro impact, higher sales volumes, higher trade margins in wholesale and non-fuel margins in retail and the use of historical inventory layers. The above positive effects were partially mitigated by the negative impact of lower retail fuel margins, higher overheads and labor costs, higher cost of provisions for CO2 emissions and revaluation of inventories to obtainable prices (NRV), it said in the report.
Consolidated sales revenues reached PLN 41,165 million in Q4 2021 compared to PLN 23,175 million a year earlier.
“Revenues: increase by 78% (y / y) as a result of higher quotations of refining and petrochemical products due to an increase in oil prices by 36 USD / bbl (y / y) and higher sales volumes by 7% (y / y)” – it was written further in the PKN Orlen report.
“We are effectively implementing the assumptions of the strategy, developing and at the same time using the potential of the entire Orlen Group. Combined with effective management, this brings the expected results. The record results we achieved in 2021 are the result of our right decision to diversify our activities. We consistently invest in our core business, at the same time strongly engaging in the development of new areas, which translates into specific benefits. We have strong financial foundations and we are well prepared for strategic challenges. It is primarily the construction of an integrated multi-energy concern, which will be a leader in the energy transformation in Central Europe. profit will contribute to the implementation of our next investments, including low and zero-emission energy. They will strengthen the company’s position on the international market, building its lasting value for shareholders and the strength of the Polish economy,” commented President Daniel Obajtek.
A record result in the fourth quarter of 2021 was recorded by the refining segment, whose LIFO EBITDA increased to PLN 2.1 billion.
Such a high result is the result of: the positive macro impact (y / y) caused by the higher Brent / Ural differential, the increase in margins on light and medium distillates, the weakening of the Polish zloty against the dollar and the valuation and settlement of CO2 futures contracts. At that time, the concern also recorded an increase in volumes sales by 10% (y / y), including: higher sales of gasoline by 21%, diesel oil by 8%, JET by 110% and heavy fuel oil by 26%, with lower LPG sales by (-) 8%. of crude oil in the Orlen Group amounted to 8.6 mt, which means an increase by 1.2 mt (y / y) PKN Orlen achieved higher crude oil throughput by 0.4 mt (y / y) and fuel yield by 5 pp (y / y) In turn, Orlen Unipetrol recorded an increase in crude oil throughput by 0.2 mt (y / y) and fuel yield by 3 pp (y / y), while in Orlen Lietuva crude oil throughput increased by 0.6 mt (y / y), and fuel yield improved by 2 pp (y / y). Sales amounted to 6.8 mt, i.e. 10% (y / y) more, including: in Poland by 6%, in Lithuania by 16%, and in the Czech Republic by 12%, among others thanks to the improved market and macroeconomic conditions j, the company said in the report.
The petrochemical segment has once again confirmed its strong position. In the last quarter of 2021, LIFO EBITDA reached PLN 1.4bn, which means an increase by 76% (y / y), the company also announced.
This result is the result of higher (y / y) petrochemical margins on olefins, polyolefins, PTA, PVC and fertilizers as well as the valuation and settlement of CO2 futures contracts. Sales amounted to 1.3 mt and were lower by (-) 7% (y / y) ), including in Poland by (-) 13%, mainly fertilizers and PTA, which was caused by maintenance shutdowns of PTA and Reforming V installations. In Lithuania, sales increased by 47% (y / y), and in the Czech Republic by 3% (y / y) / r), as a result of the improvement of the operational parameters of PE3 installation, the company stated.
The energy segment achieved EBITDA of PLN 248 million, of which PLN 554 million is the result of the Energa Group (an increase by 40 PLN million (y / y).
This result was mainly influenced by the increase in gas prices, as well as lignite prices in the Czech Unipetrol, and the price relationship between the purchase and resale of energy in the Energa Group, which partially compensated for settlements and valuations of CO2 futures contracts. At that time, the Company had 3.3 GWe. installed electric capacity and 6.1 GWt of thermal capacity. Electricity production, which in approx. 60% came from zero- and low-emission sources, amounted to 3.2 TWh. Electricity sales were at a slightly lower level compared to the same period last year However, as a result of increasing remote work in Poland, its distribution increased. As part of building new business areas in the energy segment, PKN Orlen continued to focus on the development of offshore wind energy, it said in the report.
In the fourth quarter, the retail segment generated PLN 572 million in EBITDA, lower by 25% (y / y).
This result was influenced by a decrease in fuel margins on the Polish market, with an increase in the Czech and German markets and a comparable level on the Lithuanian market (y / y). The concern in Poland and Lithuania, however, recorded an increase in non-fuel margins, with a decrease in Germany and the Czech Republic Sales increased by 9% (y / y), including: gasoline by 14%, diesel oil by 7% and LPG by 2%. In Poland it increased by 12%, in the Czech Republic by 6%, and in Germany by 2%. , with lower sales in Lithuania by (-) 3%. At the end of 2021, 2,881 service stations operated in the Orlen Group’s retail network, which means an increase by 26 (y / y), including: in Poland by 8, in Germany by 4, in the Czech Republic by 5 and in Slovakia by 9, with a comparable number of stations in Lithuania. Thus, the concern increased its share in the Czech and Slovak markets. The development of the non-fuel offer continued. The number of non-fuel sales points Stop Cafe / star Connect / Orlen increased by 72 compared to the same period last year, including: in Poland by 25, in Germany by 29, in The Czech Republic by 14, in Slovakia by 3 and in Lithuania by 1. At the end of December 2021, there were 2,290 of them in total, including: 1,750 in Poland, 327 in the Czech Republic, 168 in Germany, 29 in Lithuania and 16 in Slovakia. The concern was also consistently adapting the network of stations to sell alternative fuels. As a result, the number of alternative refueling points increased by 296 (y / y), to over 500. Customers have at their disposal 462 charging points for electric cars, located mainly in Poland, 2 hydrogen stations and 44 CNG stations, it said in the report.
The upstream segment achieved a solid result again, with EBITDA of PLN 185 million, almost four times higher (y / y).
It reflects the positive macro impact (y / y) as a result of the increase in crude oil, gas and gas condensate prices as well as the positive impact of cash flow hedging transactions. At that time, average production in Poland amounted to 1,000 boe / d and was at a comparable level (y / y / y), while in Canada, with a slight decrease of 0.3 thousand boe / d, it reached 14.9 thousand boe / d. In addition, the drilling works in the Miocen project were completed and the drilling of the first borehole was carried out in cooperation with PGNiG in the Płotki project. and the drilling of the next one was started. The feasibility of extracting hydrocarbon resources in the southern part of the area, it said in the report.
Throughout 2021, the company had PLN 10,158 million of consolidated net profit attributable to the shareholders of the parent company, compared to PLN 2,755 million of profit a year earlier, with sales revenues of PLN 131,592 million compared to PLN 86,180 million a year earlier.
On a standalone basis, the net profit in 2021 amounted to PLN 7,144 million, compared to PLN 2,356 million of loss a year earlier.
The PKN Orlen Group manages six refineries in Poland, the Czech Republic and Lithuania, and is also active in Poland and Canada. Its consolidated sales revenues reached PLN 131.5 billion in 2021. The company has been listed on the WSE since 1999.
Source: PKN Orlen and ISBnews
