Orlen Group to allocate over EUR 31 billion for strategic investments

2020-11-30 17:59 update: 2020-12-01, 14:58
President of the PKN ORLEN Management Board Daniel Obajtek. Phot. PAP
President of the PKN ORLEN Management Board Daniel Obajtek. Phot. PAP
Poland's top fuel and energy group PKN Orlen plans to earmark over PLN 140 billion (EUR 31.26 billion) for its strategic investments until the end of 2030.

Daniel Obajtek, President of the PKN ORLEN Management Board, presenting Orlen Group's new strategy on Monday said that the path of the Group’s transformation until 2030 has been charted around renewable energy and advanced petrochemicals.

He noted that the business diversification efforts will be driven by maximised profits from the Group’s existing core business and used for transformations based on new technologies, in line with the emerging environmental and consumer trends.

"We will spend a total of approximately PLN 140 billion on our strategic objectives, which will generate a total of PLN 195 billion (EUR 43.55 billion) EBITDA over the next 10 years. The diversified business will provide us with financial stability and will enable us to consistently build value for our shareholders. ORLEN2030 will be an effective, integrated company based on clean technologies and zero-emission energy sources," PKN Orlen said in its press release quoting Obajtek.

Obajtek added that the strategy will transform Orlen into a multi-energy concern. According to him investments are to focus on such areas as refineries, petrochemicals, mining, fuel retail, as well as energy and gas distribution.

According to the PKN Orlen CEO some 50 percent of investment funds will be allocate for projects related to the construction of "new, promising branches in the business." "Renewable Energy Sources and modern, low-emission petrochemicals is the key. It will become an extremely important source of revenues from oil processing in the coming decades," said Obajtek adding that the Group will also develop its non-fuel retail segment, pointing out that in these areas Orlen Group wants to "build new sustainable sources of further growth and on them base a zero-emission strategy by 2050."

The concern wrote that based on the Ruch countrywide chain of newsagents, the Group will expand its store and food service formats beyond service stations, and will also develop its 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.

Obajtek also announced that in tune with the strategy, some 10 percent of the planned outlays are to be spent on "investments into the future" to include new mobility, hydrogen, recycling, R&D and digitisation. "Investments in these areas will provide us with a base for further growth and development," said Obajtek.

"Thanks to this strategy, Orlen will become a business leader in sustainable transformation in Central Europe, Obajtek summed up. (PAP)