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

Our financial capital includes equity and debt capital, mainly in the form of borrowings.

ORLEN Group’s equity

[PLN bn]

ORLEN Group’s debt capital

[PLN bn]

Non-current assets
Property, plant and equipment (power generation assets)
CAPEX (increase in non-current assets)

The capital management

  • Financial stability maintained through measures optimising expenditure and asset structure
  • Financial ratios, especially leverage, maintained at safe target levels
  • Steps taken 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
  • Financial stability underpins the ORLEN Group’s ambitious acquisitions drive, including planned acquisition of Grupa LOTOS and successful tender offer for ENERGA Group shares.


Net debt in 2019 was reduced by nearly PLN 3.2bn, to PLN 2.4bn, with the financial leverage of 6.3%, confirming the ORLEN Group’s stable financial footing.

  • In 2019, LIFO-based EBITDA1 before net reversals of impairment losses on assets, delivered by the ORLEN Group operating segments reached PLN 9.2bn.

LIFO-based EBITDA, by operating segment [PLN bn]

1Earnings before depreciation and amortisation net of the effect of crude price movements on the value of inventories.

After net effect of reversal of impairment losses on assets, of PLN (0.2)bn, LIFO-based EBITDA was PLN 9.0bn.

With the negative effect of changes in crude oil prices on the valuation of inventories included (PLN (0.1)bn), the ORLEN Group’s EBITDA for 2019 came in at PLN 8.9bn.

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

The high EBITDA translated into operating cash flows of PLN 9.3bn, enabling ORLEN to allocate PLN (4.4)bn to investment projects and pay dividend of PLN 1.5bn (PLN 3.5 per share), in line with PKN ORLEN’s dividend policy.

Dividend distribution (PLNbn)

How financial capital interacts with other capitals?

The link between financial and production capitals follows directly from the updated strategy for 2019–2022, which provides for expanding and enhancing petrochemical production, entering the low-carbon energy sector in Downstream, consistently growing retail sales, and sustainably developing hydrocarbon E&P operations. The Company’s CAPEX budget for 2019–2020 will average PLN 6.8bn annually, an increase of PLN 2.2bn over 2017–2018. Of that amount, PLN 4.9bn has been allocated to Downstream, PLN 0.7bn will be invested in Retail and PLN 0.7bn will be spent on Upstream projects. The target full-year LIFO-based EBITDA for the period will average PLN 10.3bn, up by PLN 1.1bn from 2017– 2018.

Financial capital is a driver of natural capital, enabling ambitious investments and acquisitions in the low-carbon energy sector. In the short term, the construction of offshore wind farms will be completed and green capacities of the Energa Group will be integrated into the Group’s asset base. The planned acquisition of Grupa LOTOS is expected to significantly expand the ORLEN Group’s new mobility capacities, representing a strategic growth opportunity. A letter of intent was also signed with PESA Bydgoszcz in 2019 on the development of hydrogen powered rail transport.

As at December 31st 2019, the largest item of the ORLEN Group’s assets was property, plant and equipment, which increased by PLN 1.0bn, to PLN 32.4bn. In 2019, the ORLEN Group’s capital expenditure on property, plant and equipment was PLN 4.1bn, down by PLN (0.1)bn year on year.

For more information on financial capital, see the ‘Financial results’ section.

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