Half Year 2024 Orlen SA Earnings Call Transcript
Key Points
- Orlen SA (PSKOF) reported a strong LIFO-based EBITDA of PLN7.7 billion in the second quarter and over PLN15 billion for the first half of 2024, indicating solid financial performance despite challenging macroeconomic conditions.
- The company successfully increased its retail sales, driven by a successful promotional campaign, which helped offset the negative effects of declining refining and petrochemical margins.
- Orlen SA (PSKOF) has rationalized its investment spending, reducing planned expenditures by 9% to over PLN35 billion, focusing on upgrades, modernization, and maintenance CapEx.
- The energy segment reported strong operational performance with an EBITDA of close to PLN2 billion, benefiting from favorable macro and regulatory environments.
- The company has expanded its renewable energy resources portfolio, strengthening its market position with new contracts for solar PV and wind farms, totaling over 300 megawatts capacity.
- Orlen SA (PSKOF) faced a challenging macro environment with refining margins down by over 9% and petrochemical margins also declining, impacting overall profitability.
- The petchem segment continues to operate in a very challenging environment, reporting a slight loss despite higher production volumes and demand.
- The upstream segment reported an operational loss of PLN3.9 billion due to the gas windfall charge, significantly affecting the company's financial results.
- The company experienced a negative net result in the second quarter, down PLN6 billion year-on-year, primarily due to higher costs and lower compensation related to regulatory charges.
- Orlen SA (PSKOF) is facing strategic challenges with the Olefin III project, which is considered ill-prepared and requires a major decision on its future, potentially impacting financial resources and strategic focus.
Good morning, ladies and gentlemen, and welcome to Warsaw Stock Exchange Head Office to the conference call, which will be devoted to the financial and operational performance of ORLEN Group after the second quarter of 2024. Thank you for the turnout, which is pretty solid today and welcome to all the online participants of today's conference call.
Today's speakers will include Mr. Ireneusz Fafara, Management Board President and CEO; as well as Magdalena Bartos, VP for Finance CFO. The floor is yours.
Good morning to you. I'm sorry for the technical glitches. Welcome to our conference call, which will be devoted to our performance after the second quarter of 2024 from our perspective -- ours and the management board's perspective. This is a very important conference call, which will present -- which will present our performance after the second quarter, the quarter during which we have been responsible for -- we were responsible for
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