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Investing.com -- Polish oil refiner Orlen reported second-quarter EBITDA (LIFO) excluding impairments of PLN9.2 billion, slightly above the company-compiled consensus of PLN9.1 billion.
The company’s downstream and consumer products segments delivered stronger-than-expected results, which were largely offset by weaker performance in the upstream and supply segment and higher corporate charges.
Orlen recorded PLN1.5 billion in impairments, which the company had previously disclosed at the end of July. As a result, net profit came in at PLN1.6 billion, significantly below the consensus estimate of PLN3.0 billion.
Free cash flow for the quarter reached PLN4.0 billion, driven by a working capital release of PLN2.4 billion and lower cash capital expenditure of PLN6.3 billion.
In the downstream segment, refining margin capture was better than anticipated, with refining EBITDA at $8.6 per barrel, while utilization rates were slightly lower at 93%. Strong refining results compensated for weaker petrochemicals performance, which posted a loss of PLN0.3 billion.
The consumer and products segment benefited from seasonal strength and a positive PLN0.2 billion impact from asset settlement. Energy EBITDA reached PLN2.3 billion, 7% above consensus, supported by higher distribution volumes.
The upstream and supply segment generated PLN3.3 billion in EBITDA, 12% below consensus of PLN3.8 billion, with upstream production at 182 thousand barrels per day and lower-than-expected gas trading results of PLN0.4 billion.
Orlen maintained its capital expenditure guidance for fiscal year 2025 at PLN35.3 billion but upgraded its EBITDA outlook, now expecting "higher" EBITDA year-over-year compared to the previous "stable" outlook. This aligns with market estimates of PLN37.9 billion for 2025 versus PLN36 billion in 2024.
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