Our actions are driven by the overarching goal of achieving carbon neutrality by 2050. We realize that this ambitious challenge calls for decisive measures. That is why we keep investing especially in those areas which best fit with energy transition targets. One of these areas is hydrogen. We took a leading role in the Mazovian Hydrogen Valley project launched last year, which currently brings together 24 companies. Hydrogen produced in the Valley will be used in the transport, energy and agriculture sectors, among other applications. At the same time, as part of the hydrogen strategy announced earlier this year, our plan is to build 540 MW of new hydrogen generation capacities by the end of the decade, and we will allocate PLN 7.5 billion for that purpose. PKN ORLEN’s ambition is to produce nearly half of our hydrogen from zero- and low-carbon sources by 2030.

PKN ORLEN enjoys a well-established leading position in the Polish and European market, which puts an obligation on us not only to respond to market trends, but also to act as the trendsetter. By pursuing our long-term strategy, we strengthen our key segments. We consistently invest in low- and zero-carbon energy sources, at the same time increasing funding to upgrade our refineries so that they can become centres for emission reduction.

Last year, we launched expansion of the olefins complex at the Płock production plant. It is the key project in the strategic Petrochemical Development Programme and the largest petrochemical project in Europe in the last 20 years. The Olefins III complex is being built using state-of-the-art technologies to ensure, among others, greater energy efficiency, including a 30% reduction of CO2 emissions per tonne of the product.
In mid-2021, we opened an R&D centre in Plock, which was a milestone towards the delivery of the Petrochemical Development Programme. By 2025, the centre will have its own hydrogen laboratory. We also launched a hydrogen analytical testing laboratory in Trzebinia. As announced earlier, we plan to spend PLN 3 billion on research and development projects over the next decade. By 2024, we will also invest more than EUR 640 million in the Mažeikiai plant in Lithuania, which will improve the refinery’s profitability and the company’s bottom line.

Retail is one of the cornerstones of our business. Customers appreciate both our product portfolio and the quality of service, as confirmed by independent surveys and rankings. Last year, we put a strong focus on the development of the range of products offered by our stores and restaurants. We proposed a new ORLEN in Motion (ORLEN w Ruchu) format to our clients, which is a combination of a press lounge and a cafe. Our new ORLEN Parcel (ORLEN Paczka) service won client recognition as well, quickly gaining recommendations from as many as 96% of recipients. At the end of the year, we launched an e-commerce platform to replace the previous Vitay rewards catalogue.

In keeping with the ORLEN 2030 strategy, we are also expanding our network abroad. The share of service stations outside Poland is to grow from 37% to 45% by 2030. Following the merger with Grupa LOTOS, we will enter the Hungarian market, where 144 fuel stations will operate under the ORLEN brand, representing more than 7% of the market. We will also expand our footprint in Slovakia, adding 41 new service stations to that network. As a result of our efforts, by 2030 there will be at least 3,500 service stations operating under the ORLEN brand and offering highest-quality products and services.

The conflict in Ukraine has shown beyond any doubt that diversifying the supply sources for critical feedstocks and securing necessary capabilities and efficient supply channels is an absolute priority. Only in this way can we ensure energy security in a situation when crisis scenarios become a reality. Thanks to the steps we took well in advance, we are prepared to face today’s challenges. Last year, we focused on tightening the links with our business partners and we forged new relations across all areas of our operations. For example, as part of our strategy, ORLEN Group company ORLEN Lietuva acquired 100% of shares in Mockavos Terminalas of Lithuania, thus taking control of a rail transshipment terminal near the Polish-Lithuanian border, which is used to handle products manufactured by the Mažeikiai refinery to be supplied to the Polish and Ukrainian markets. Last year we also took over OTP, Poland’s largest road carrier of liquid fuels. With this acquisition under our belt, we are able to keep full control of the product throughout the entire logistics chain, and reach a high level of operational flexibility depending on the supply and demand situation on the market. What is more, expansion of our own transport capacities and centralisation of road logistics management contribute positively to the Group’s performance.

As the Central and Eastern European leader in the fuel and energy business, we are well aware of the great responsibility that rests on our shoulders, not only in the social dimension but also in terms of environmental protection. The path towards net zero is consistent with the goals set in the ORLEN 2030 strategy and the vision of a strong multi-utility player.

Our commitment to carbon neutrality can be seen in our investments in the development of renewable energy sources supported by gas-fired capacities. We are working hard to develop and deliver onshore and offshore wind farm projects and to continue our solar photovoltaic programme. We invest in EV charging infrastructure – by 2030 we want to have at least one thousand fast chargers in operation. By the end of this decade alone, we plan to allocate over PLN 30 billion to sustainable investment projects, mainly those designed to reduce carbon emissions.

Keeping a watchful eye on market trends and responding quickly, combined with a consistent delivery of strategic plans, is the key to PKN ORLEN’s success. Last year, we reported an all-time high net profit of PLN 11.2 billion, with the Energy and Petrochemical segments being the biggest contributors to that figure. Our revenue came in at PLN 131.3 billion, despite a significant decline in fuel margins in the Polish market, as approximately 50% of our revenue is now generated abroad.

Those results show that the steps we took last year to address the challenges of the macro environment proved successful. PKN ORLEN’s dividend for 2021 was PLN 3.5 per share, as assumed in the strategy, and we are allocating almost PLN 1.5 billion for its payment. Furthermore, we issued PLN 1 billion worth of corporate bonds and, for the first time, green Eurobonds with a total value of EUR 500 million. Once again, our last-year’s performance confirms that the diversification of revenue sources, coupled with strategic investments, makes sense.

PKN ORLEN is a forward-looking brand and a hallmark of Polish business. Marketing and sponsorship play a major role in building our position, which is why it is so important to properly manage those areas and deliver ambitious projects to support our business activities. One case in point is our sports and culture sponsorship efforts.

Thanks to our sponsorship projects, last year alone we generated a media equivalent of more than one billion złoty. We supported 80 talented athletes and about 70 clubs from all over Poland. We were involved in projects and initiatives to benefit 55,000 children and young people. Our activities bring the expected results – according to leading surveys, as many as 7 in 10 Poles say they have a better perception of the ORLEN brand due to our involvement in sports sponsorship. Partnership with cultural institutions and support for social outreach initiatives are equally important to us. The flagship cultural event under PKN ORLEN’s patronage in 2021 was the International Fryderyk Chopin Piano Competition.

Last year we were the first company in Poland to publish an annual report describing in detail the projects we support, deliverables of our sponsorship activities, and the best practices we had developed over the years in terms of cooperation with athletes, cultural institutions and social partners. Above all, however, the report stresses that we will continue to treat sponsorship as a long-term component supporting the delivery of our business strategy, and this will be the case also in the years to come.