In the wake of Daniel Obajtek’s dismissal from the helm of Polish oil giant PKN Orlen, the company has released its first quarterly financial report, revealing a stark downturn in profits. The numbers reflect a challenging transition period for Orlen as it navigates through changes in leadership and market dynamics.
The net profit for Orlen Group in the first three months of 2024 stood at 2.785 billion PLN, a dramatic drop of over 6.686 billion PLN compared to the same period last year. This significant financial shift comes shortly after the departure of Daniel Obajtek in early February, who had been credited with elevating Orlen to new business heights during his tenure.
The company reported total revenues of 82.332 billion PLN for the first quarter, which is also lower by 33.496 billion PLN year-on-year. The decrease in revenue was particularly noticeable in key segments such as gas, refinery, energy, and extraction. This downturn reflects broader market challenges and internal adjustments post-leadership change.
Moreover, Orlen’s asset total at the end of March 2024 decreased slightly by 1.181 billion PLN from December 2023, standing at 262.997 billion PLN. Despite these setbacks, Orlen maintained a stable financial outcome with an EBITDA LIFO of 8.4 billion PLN for the quarter. The company also managed to reduce its net debt by 1 billion PLN compared to the previous quarter, demonstrating effective debt management amidst financial turbulence.
Significantly, Orlen has not pulled back on its strategic investments despite the financial downturn. Nearly 6.4 billion PLN was allocated towards investments across all operational areas within the first quarter, underscoring the company’s commitment to long-term growth and stability.
This first quarterly report in the post-Obajtek era has set a new tone for Orlen. As the company strives to adapt to its new leadership and evolving industry challenges, stakeholders and market watchers will be keenly observing how these changes will influence Orlen’s strategic directions and financial health in the quarters to come.