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Investing.com -- Orlen, the Polish oil refiner and petrol retailer, reported a stronger-than-expected performance in its first quarter of 2025 EBITDA.
Shares in the company were largely unchanged in today’s trading session in Warsaw.
The company’s EBITDA increased by 7.4% and 7.8% compared to Morgan Stanley (NYSE:MS)’s estimate and Visible Alpha consensus, respectively. This was mainly due to the robust performance in the upstream segment of the business, which exceeded Morgan Stanley’s estimate by 10.0% and consensus by 13.7%.
On the other hand, Orlen’s refining segment performed slightly weaker than expected, with the adjusted EBITDA down by 1.3% compared to Morgan Stanley’s estimate and down by 5.6% compared to consensus. The refining segment’s better operational expenses partially compensated for weaker sales and refining margin.
The company’s petrochemicals segment continued to face challenges as the adjusted EBITDA was reported at a negative PLN368 million. This figure was weaker than both Morgan Stanley’s estimate of negative PLN258.4 million and the consensus estimate of negative PLN210 million.
Orlen also reported a consolidated capital expenditure (capex) of PLN6.8 billion in the first quarter, lower than Morgan Stanley’s estimate of PLN7.5 billion. Consequently, the ratio of net debt to EBITDA declined from 0.3 times in the fourth quarter of 2024 to negative 0.01 times in the first quarter of 2025.
Despite the stronger performance in the first quarter, Orlen’s management has not made any changes to its full-year outlook. The company expects its EBITDA LIFO (Last In, First Out), a method of inventory valuation, to remain at similar levels as in the fiscal year 2024, with Morgan Stanley estimating an increase of 2.9% year-on-year. The company also projects its capex for the fiscal year 2025 to be within the range of PLN33 to PLN35 billion.
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