Financial capital

Financial capital represents the available financial resources held currently by the ORLEN Group, obtained from internal or external sources and generated as part of our business.

Key facts about the capital

The financial capital of the ORLEN Group includes equity and debt capital, mainly in the form of borrowings.

ORLEN Group’s equity [PLNbn]

ORLEN Group’s debt capital [PLNbn]

Description UoM 2021 2020
Revenue PLNm 131,341 86,180
LIFO-based EBITDA before impairment of non-current assets* PLNm 14,154 12,430
LIFO-based EBITDA PLNm 14,965 10,839
EBITDA PLNm 19,211 8,465
LIFO-based EBIT PLNm 9,624 6,282
EBIT PLNm 13,870 3,908
Net profit/(loss) PLNm 11,188 2,825
Total assets PLNm 106,754 84,048
Equity PLNm 52,578 42,389
Net debt PLNm 12,275 13,060
Net cash from operating activities PLNm 13,295 7,247
Net cash from investing activities PLNm (9,739) (8,495)
Free cash flow (FCF) PLNm 3,556 (1,248)
Capital expenditure (CAPEX) PLNm 9,890 8,992
Net financial leverage % 23.3 30.8
Net debt / LIFO-based EBITDA x 0.80 1.02
Net debt / EBITDA x 0.62 1.27
Dividend per share (DPS) [PLN per share] 3.50 1.00
Market capitalisation at year end PLNm 31,796 24,687
* The operating results for 2020 and 2021 include impairment losses on assets of PLN (1,591)m and PLN 811m, respectively.

Capital management

  • Working towards the development of renewable energy and production of advanced petrochemicals, with a simultaneous conversion of existing operations, where innovation and adoption of new technologies is consistent with the long-term objective of achieving carbon neutrality by 2050
  • Further development of the multi-utility structure of the ORLEN Group to maintain the leading role in the energy transition process in Poland and Central Europe
  • Maintaining financial stability through measures optimising expenditure and asset structure
  • Maintaining financial ratios, especially leverage, at safe target levels
  • Taking steps to strengthen the ORLEN Group’s long-term competitive edge both in Poland and abroad
  • Strong focus on developing existing assets and advancing innovation, which is to help the ORLEN Group preserve a strong competitive advantage in the extremely dynamic environment

In 2021, PKN ORLEN’s investment grade ratings from two leading rating agencies Fitch Ratings and Moody’s Deutschland GmbH were maintained at the level of BBB- with a positive outlook and Baa2 with a positive outlook, respectively.


In 2021, the ORLEN Group operating segments delivered LIFO-based EBITDA before net reversal of impairment losses on assets of PLN 14.2bn.

LIFO-based EBITDA by operating segment [PLNbn]

After the net effect of impairment reversals of PLN 0.8bn (mainly in respect of ORLEN Upstream’s assets, of PLN 0.9bn), the ORLEN Group’s LIFO-based EBITDA for 2021 totalled PLN 15.0bn.

The effect of oil price movements on the value of inventories, reflected in EBITDA, was PLN 4.2bn. As a result, the ORLEN Group’s EBITDA for 2021 came in at PLN 19.2bn.

Effect of impairment losses and inventory write-downs on EBITDA [PLNbn]

Net cash from operating activities in 2021 was PLN 13.3bn and included mainly earnings before depreciation and amortisation (EBITDA) of PLN 19.2bn, adjusted primarily for: changes in provisions of PLN 6.1bn, negative effect of an increase in net working capital of PLN (4.4)bn, gain on investment activities of PLN (3.7)bn, income tax paid of PLN (1.2)bn and share in net profit/(loss) of equity-accounted entities of PLN (0.6)bn.

Net cash used in investing activities in 2021 amounted to PLN (9.7)bn and included mainly net cash from the acquisition and disposal of property, plant and equipment, intangible assets and right-of-use assets of PLN (11.1)bn, purchase of shares in subsidiaries, net of cash acquired as at the acquisition date in the amount of PLN (0.8)bn, and settlement of derivatives not designated for hedge accounting of PLN 2.0bn.

As part of the ORLEN Group Strategy for 2021–2030 introduced in 2020, PKN ORLEN also adopted a dividend policy which assumes annual dividend payments of at least PLN 3.50 per share starting from 2021. The Group’s dividend policy takes into account its liquidity situation as well as the ability to deliver strategic financial objectives.

Dividend distribution (PLNbn)

How financial capital interacts with other capitals

The ORLEN Group’s strategy until 2030 sets the course for the Group’s transformation into a multi-utility group and a leader of energy transition in the region. The long-term ORLEN Group’s strategy is consistent with global trends in the development of renewable energy and production of advanced petrochemicals, with a simultaneous conversion of existing operations, where innovation and adoption of new technologies is consistent with the long-term objective of achieving carbon neutrality by 2050.

By 2030, we plan to spend a total of PLN 140 billion on investment projects. Our growth is based on a diversified portfolio of existing and future operations, whose development is guided by the direction of the ORLEN Group’s transformation until 2030.

The Group’s key growth area over the next decade will be energy, based mainly on renewables and supported by gas-fired sources. The generation assets will be complemented by the Group’s extensive and modern distribution network, offering access to a broad base of customers and generating a steady stream of profits. The Group will also build energy storage facilities on a pilot basis to optimise the costs of electricity distribution.

By 2030, around a half of the Group’s profits from crude oil processing will be derived from the petrochemical business. Expansion of the existing portfolio and entry into new business areas, such as recycling and biomaterials, will help entrench our position as a leading petrochemical producer in Central Europe. These two segments will account for approximately PLN 45–55bn of the planned capital expenditure until 2030.

Until 2030, refining will remain an important segment of our business. Its transformation will be driven by energy efficiency improvements, increased crude conversion rates and integration with Grupa LOTOS, the Group’s major domestic peer. Expansion of the biofuel and hydrogen fuel output will be another vital driver. As part of the strategy, work will be continued on the Group’s hydrogen hub projects in Włocławek and Płock, and steps will be taken to launch green hydrogen production.

MPF_6559 MPF_6559

The strategic vision is to vigorously develop our retail arm, based on the network expansion and significant additions to the retail offering. By 2030, the number of Polish ORLEN-branded service stations operating throughout the region will be at least 3,500. The ORLEN Group will develop its network mainly abroad to increase the share of foreign locations from the current 37% to 45%. We are gradually enhancing the availability of alternative fuels. By the end of the 2020s we plan to deploy at least 1,000 EV fast chargers and increase the sales of hydrogen and LNG/CNG. Our broad, integrated offering of non-fuel products and services will keep attracting new customer groups. Based on the RUCH countrywide chain of newsagents, we will expand our store and food service formats beyond service stations, and will also develop our own network of parcel pick-up points and e-commerce services. Integration with the Energa Group will help ORLEN develop comprehensive service centres for both retail and business customers, encompassing fuel and electricity sales as well as distributed energy solutions.

The ORLEN Group’s strategy envisages prudent expansion of the asset portfolio in the Upstream segment, with a special focus on natural gas reserves and potential restoration of the existing portfolio of production assets after merger with Grupa LOTOS. The ORLEN Group will also expand its existing operations in Poland. We will pursue growth in upstream while continuously maximising asset value and driving operational excellence.

As at December 31st 2021, the largest items of the ORLEN Group’s assets were property, plant and equipment and intangible assets, which increased by PLN 8.1bn, to PLN 60.2bn. In 2021, the ORLEN Group’s capital expenditure on property, plant and equipment and intangible assets was PLN 8.8bn, up by PLN 0.9bn year on year.

For more information on financial capital, see ‘Management’s discussion and analysis of 2021 financial results’.

See also

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