Poland’s largest energy group, Orlen, reported better-than-expected core earnings for the fourth quarter of 2025 on Thursday, supported by a strong performance in its refining business despite weaker net profit.
Shares in the state-controlled company rose 2.2% by 0849 GMT, helping lift Poland’s blue-chip WIG20 index by 0.5%, as investors focused on resilient downstream margins.
Adjusted EBITDA LIFO fell 15% year-on-year to 12.15 billion zlotys ($3.40 billion), but still beat analysts’ consensus forecast of 11.4 billion zlotys, reflecting stronger-than-anticipated refining gains.
The company’s model refining margin surged in the quarter, aided by sanctions and Ukrainian drone attacks on Russian infrastructure that disrupted diesel exports and tightened supply.
That strength in downstream operations helped cushion the impact of a broader commodity downturn, with Brent crude prices dropping nearly 15% and natural gas prices retreating from year-earlier highs.
However, quarterly net profit came in at 3.13 billion zlotys, missing the 4.8 billion zlotys expected by analysts, as impairment charges weighed on the bottom line.
Orlen booked 3.34 billion zlotys in net impairment losses on non-current assets, including a 2.2 billion zloty charge in its downstream segment, which covers refining, petrochemicals and its scaled-down Olefins “New Chemistry” project.
The company said the revised petrochemical investment plan aims to cut costs amid volatile market conditions and weaker pricing across the sector.
Looking ahead, Orlen plans capital expenditure of 36.3 billion zlotys in 2026, up from 32.6 billion zlotys last year, underscoring its focus on energy transition and infrastructure expansion.
Key projects due for completion this year include Poland’s first offshore wind farm in the Baltic Sea and a new gas-fired power plant in Grudziadz, northern Poland.