Profil:
Orlen SAOrlen energy estimates PLN 1.5 bln in 2024 net profit; dividend policy remains unchanged
Poland's largest energy concern Orlen estimates that its 2024 net profit will likely amount to PLN 1.5 billion (EUR 358.5 mln), and net profit before asset write-offs is to reach PLN 13.2 billion (EUR 3.16 bln), the company said in a market filing.
Orlen said its dividend policy and criteria for its payment remained unchanged.
Revenues are expected to amount to PLN 294.9 billion (EUR 70.5 bln), and LIFO EBITDA before asset impairment charges to PLN 35.8 billion (EUR 8.6 bln).
The concern assumes that the group's results for 2024 will include the reversal of asset impairment charges totalling about PLN 4 billion (EUR 956 mln) and asset write-offs totalling approximately PLN 11.5 billion (EUR 2.75 bln).
“The asset write-downs are non-cash in nature and are not directly related to the Orlen Group's current operating results and are therefore not related to the operating cash flows on which the group's new dividend policy and the management board's recommendation of February 27, 2025, to pay a dividend for 2024 of PLN 6.00 per share are based,” Orlen said in the market filing.
It added that despite extensive optimisation measures, in particular focusing on improving the profitability of the New Chemistry (Nowa Chemia) investment project, it is obliged to update the value of assets under construction of the project in the amount of PLN 5.2 billion (EUR 1.24 bln).
“Capital expenditures incurred in 2024 for the New Chemistry project (formerly Olefins III) amounted to PLN 4.8 billion (in total, from the start of the Olefins III project in 2021 to the end of 2024, expenditures amounted to PLN 14.1 billion),” Orlen said in the market filing.
The concern stipulated that the earnings estimates are currently being reviewed by an auditor and are subject to change in the final consolidated financial statements, which the company is slated to publish on April 15, 2025.
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