Earnings call transcript: Olin Group sees growth in EBITDA, Q3 2025

Olin Group reported a mixed set of financial results for the third quarter of 2025. The company saw a 40% increase in EBITDA, reaching 11.6 billion, despite a 10% decline in total income to 73 billion. Currently trading at $91.94, the stock sits above its 52-week low of $86.89 but well below its high of $136.59. According to InvestingPro analysis, the company appears slightly undervalued based on its Fair Value calculation, suggesting potential upside for investors.

Key Takeaways

• Olin Group’s EBITDA surged by 40% despite a decline in total income.
• The company reduced its debt to nearly zero, enhancing financial stability.
• Strategic partnerships and investments in renewable energy projects signal future growth.

Company Performance

Olin Group demonstrated resilience in the third quarter of 2025, with a notable increase in EBITDA despite a drop in total income. The company’s strategic focus on reducing debt and enhancing cash reserves has positioned it strongly in the Central European energy market. Olin’s diversified energy portfolio and international presence continue to support its competitive edge.

Financial Highlights

• Total income: 73 billion, down 10% year-over-year
• EBITDA: 11.6 billion, up 40% year-over-year
• Net cash: 1.6 billion at quarter-end
• Debt: Reduced to nearly zero

Outlook & Guidance

Olin Group is targeting significant investments totaling 35 billion euros, with 75% focused on development. The company plans to construct two SMR nuclear plants by 2035 and continues to expand its offshore wind projects. Future earnings per share are projected to grow, with forecasts of 4.97 USD for FY2025 and 5.53 USD for FY2026, indicating a positive outlook.

Executive Commentary

"We are working in a way that Olin is becoming a company with solid fundamentals," said Irek, President of Olin Group, emphasizing the company’s strategic direction. Magda, Vice President, added, "Our integrated cyclical model gives us a sense of stability," highlighting the company’s resilience amidst market fluctuations.

Risks and Challenges

• Volatility in gas and electricity prices could impact margins.
• Declining refining and petrochemical margins pose a challenge.
• Macroeconomic pressures in the downstream segment remain a concern.

Q&A

Analysts focused on Olin’s market consolidation in fuel stations and its potential investments in the U.S. midstream sector. The company’s ongoing arbitrage with Venture Global and commitment to nuclear and renewable energy strategies were also discussed, indicating areas of interest and concern for stakeholders.

Full transcript - Polski Koncern Naftowy Orlen SA (PKN) Q1 2025:

Director of Investor Relations, Olin Group: Morning. Welcome to you during the presentation of the financial results of Olin Group after the first quarter of twenty twenty five. Director of Investor Relations office. At the very beginning, I would like to invite you to watch a short video. We are talking about megawatts, barrels of oil liters, but we would like to show you practically how our investment translates to our everyday After that, we will invite the President to present on strategy, and then Vice President will talk about the financial results of the first quarter of this year.

And after that, we’ll have a Q and A session. Thank you very much. Please do enjoy the video. Good morning. We are meeting here yet again to talk about the results of the first quarter of this year.

We are very proud. In the name of the all employees, I can say that it was a very good quarter, both when it comes to finances and operational activities. It was one of the best quarters for our shareholders. On this January 9, we introduced a new strategy. In this time, investor market that is investors and shareholders gave us a lot of trust.

The prices grew for 50%. Is it the highest in the history? Thank you very much for your trust. Thank you to the investors and shareholders. We are working, thinking about the shareholders.

But first of all, thank you very much to the whole team to 68,000 employees of Ola with their daily work and sacrifices at times helped us to achieve this success. It is your success. Thank you very much. We are working in a way that Orland is becoming a company with solid fundamentals. That is a pride of Polish economy.

We are working in a way in which we can claim that we are the leaders of the Polish economy. This is how we go. And now let’s go back to the data. For us as managers, the most important index assessing the functioning of the company. Net debt grew by 60%.

The debt fell down. Onethree of our profit comes from our activities abroad. The prices of oil dropped. As a result, the prices of fuel dropped as well and margins. We can say with a lot of satisfaction that prices of fuels dropped as well.

As a result, the incomes of the company dropped by 10%. It doesn’t really matter a lot when it comes to our financial results, though. And now I think that we can talk about all of the four segments, which we talked about in our strategy. However, comparing the segments in a way that we in which we compare them previously, it wouldn’t be effective. This new system is different.

So we will have to talk about our internal successes and challenges in specific segments of the company. Let’s start with upstream and supply. This was the most important segment in our activity in the first quarter. It helped the most when it comes to our financial results. What’s important for us and what we’ve mentioned in the strategy is that we decided to follow other companies and to start strategic cooperation with big players on the market to develop business, to develop new competencies, new contacts, new relations.

What’s incredibly important is that we signed an agreement about cooperation with Naftogaz in Ukraine. We are supplying American LNG through the port in Stetin and Kuipeta. We’ve already realized a few supplies. The next one is currently ongoing to Kuipeta. We want to be the next element in the supply chain of gas.

And in the future, I really do hope, in the reconstruction of destroyed Ukraine. With Equinor, that is the biggest Norwegian company, we started cooperation when it comes to the identification of potential about capture of CO2 both in the Northern Sea and also what is important for us in our region of the Baltic Sea and in Poland. As a result, we are developing our own exploitation. We’ve got two oil fields in Virgo Polska, Fifty Hundred millions of cubic meters. We started exploitation.

In Norwegian, we are starting new exploitation in our new deposits. In the biggest deposits, Ormenlanger, we started exploiting of that, and we are preparing five new contracts. There are five new possibilities of gas extractions. We do hope that we will be able to start works on these fields. Our recent competencies grew as well when it comes to gas.

We acquired two new gas carriers in Korea. They will support our possibilities of gas supply to our consumers as well our possibility in trading of gas in Europe. And what is important, what we’ve been observing for a long time, we started supplies of LNG from the contract venture global. One gas carrier came to us. The second one is still ongoing.

We are expecting the next supplies from this client. It is incredibly important that they started. However, this doesn’t change our approach to the solution of the debate from the past. The arbitrage is ongoing, and we will demand that the gas that was in supply will be treated within the contract. And to finalize this segment, I’d like to say a few words about our Polish gas company.

Gas is an incredibly important part of the company. It brings a lot of contribution to our financial results. All of that wouldn’t be possible without work and capabilities of the former Polish oil mining and gas extraction company. I think it has never been said by the president of Olin, but I would like to thank these people that they’ve joined us, that they are with us, that they are bringing a lot to our work. I would like to say that we are pry proud that they are a part of Olin.

Thank you for that. Downstream. Segment downstream. This is a challenge for everybody, not only for us. First of all, macro is very bad for this segment, especially petrochemical margins.

They are in a historical low. However, apart from that, there are also challenges when it comes to regulations as well as technological pressure, that is the need to lower emissions. However, the operational results in Holland are very good. They show our competencies and skills, management, and we are very happy about that. However, the financial results because of macro doesn’t really follow.

But taking that into account, we’ve started works in the whole group to diminish the influence of downstream on the environment. We started a cooperation with Haestan, Norwegian company. They are producing hydrolyzers for zero emission hydrogen. We believe that we will be able to produce a lot of hydrogen. And as a result, we will significantly lower production of hydrogen as well as lower the cost of production of our refineries.

The same fund invested in technology of cleaning artificial products. This will be an important part of our functioning in the future. I can’t say more today, but it looks like that our analysis indicate that this is a highly advanced technology. It will help us to recycle plastics in such a way that they will be able to be used later also in transportation. They’ve got high requirements for their raw materials.

We think this works, with these conceptual works about changes in technology and lowering of our emission footprint, we started cooperation with the Polish Technical University and when it comes to synthetic biofuels, supporting the carbonization of our fuels. We’ll be working on new ideas, looking for funds as well as building necessary infrastructure. We’ve also started talks with the market, that is the potential producers, institutions, research institutions. We want to influence the technology of ammoniac, which would support the works in Van Villa in Wartsowak. At the same time, it would help us to produce cheaper hydrogen.

The next segment, which is very important when it comes to our financial results, it’s energy. And here, two days ago, as you well know, we’ve noticed important things when it comes to construction of our farm Baltic Power, which we are building together with Northland. We introduced a installation base in Webber. It will be of a sync maintenance when it comes to building of the 76 piles and wind turbines. 14 monopiles are already installed.

Turbines as well as other piles will be installed this year. We are convinced that the farm will start its operations in the first half a year of the next year. We are also starting the project of Baltic East with the power of one gigawatt. We are currently working when it comes to environmental agreements. What is super important for us is that we started talks with potential suppliers of technologies as well as products supporting the development of this farm.

We want the local content that is Polish products when it comes to Baltic East would be at the level of 4050%. It will be an important increase compared to Baltic Power. In Baltic Power, the local content is at the stage of 21%. Apart from these works, we also want to say that what is important is the way of supplying this energy to our clients. This is the task that will be realized by Group Energa in the Northern Poland.

As you know, we signed a contract within the National Recovery Plant. We received around 7,000,000 zwotick. It will help us to modernize the network of distribution of electricity to the consumers. This is an enormous task. Grids in Poland are not very well taken off, especially in the Northern Poland.

I think it will the value of the project will be 14,000,000 We’ve already started them this year and we joined 300 kilowatts from National Recovery Plan. We also joined 12,000 new consumers. We really do care about this project and I hope that it will serve both the consumers and Energa, the listed company, and it will build its value. And the fourth segment, the most visible for the consumers, consumer products, it is calculated a little bit differently than in the past. We’ve also added here gas and electricity consumers to this segment.

That’s why comparing that to the previous periods wouldn’t really give us the proper results. We really do care about the development of this segment, especially when it comes to electromobility. In Germany, we started cooperating with a company thanks to which we will build 200 quick charging points, which will increase our influence on the market. But the most important part for us is the VDAI program. It is a platform of relation that we have with our clients, the retail clients, those who buy gas or electricity, this is developing incredibly quickly.

We’ve got 200,000 new consumers when it comes to Vitae. When it comes to gas and electricity consumers, this number grew by 20,000, and this is our core business. But Orland is the biggest Polish company, is the biggest company in the Central Europe. It also has different goals and aims, which are also very important. Social gains, goals that serve to create closer links with the countries and communities in which we operate.

And the social goals are no less important than our other goals. As you know, since the first conference, the situation in our refining plans is very important. I can say that the index that is called LTEFR is very complicated. We won’t go into details. In the past, it was 142, and this year, it was insignificantly lower.

I’m very proud of that because it shows the scale of involvement of management and our care that everybody is safe, that everyone can go safely home and feel comfortable in the company. We’ve also started the online transition plan. It shows in what way we will lower our carbon footprint and negative impact on the environment. We’ll publish it soon. Hopefully, it will be a topic of debate in the future with those to which the project is directed to.

We are open to feedback and also critical voices. In the first quarter, we also achieved a high a high assessment organized by rating CDP. This result was possible because of the implementation and reporting of our emissions when it comes to climate policy. But Olan is also about social problem social projects. We’ve set one of them in the last quarter.

It is incredibly important for us, we are very proud that we take part in it. We are engaged in actions to support climate, but it also shows our willingness to cooperate with science. I’m talking about Antarctica. Polish Researchers from chemistry and biochemistry from Polish Science Academy together with Olin started works in Antarctica. Their goal is to create a new bio reserve in Antarctica.

As to now, only 0.2% of Antarctica is protected. That’s why the development of these areas is incredibly important. It will also show the competencies of our scientists in this field. It also shows the willingness of Poland to protect the global heritage of nature. Internally, we started a program about which we haven’t really talked a lot about publicly.

From my observation and talks within the company, it seems that the program really worked out. It’s really important and moving. It’s applying to sensitivity of our employees, especially our female employees. We would like our company to be more inclusive. We hope that this initiative that was created with an aim to develop talents, but also a platform to develop talents internally, especially of our female colleagues.

We hope that they can develop as leaders in the company, but also that they can develop as female employees. We hope that they can also develop their private goals. We will also support the company. I would like to thank all of my female colleagues. Magda, it’s also thanks to you.

When it comes to Science University in Silesia, together with them, we’ve opened a new university degree. It will start this year. I hope that thanks to this and also together with our colleagues on energy companies, we can count on the fact that we will have new employees skilled and taught by this university. And the last thing from this category, a cultural program worth 12,000,000 support for cultural classes for children in small towns. We are very proud.

And the last thing, we’ve been talking about this previously, but now we can say it publicly, a program of support of firefighters, especially when it comes to buying new equipment as well as special workshops. All of that grew by 50%. The project will be worth $20,000,000,000 Ladies and gentlemen, we are changing our plan. As we said on the January, the base of this change is honesty, engagement, as well as trustworthiness. This is the base of our relationships with clients, with stakeholders, with shareholders, with the NGOs environment.

Based on these fundaments, we are building the new company, and we are changing the company. I hope that it is well visible in the results of the first quarter. I would like to ensure you that the big challenge that is ahead of us will be realized by us. And we are only at the beginning. Thank you very much, Magda.

Now it’s your turn. Good morning, ladies and gentlemen. I’m very happy to see you here and to welcome you during the presentation of the financial results of the first quarter of twenty twenty five. I will start with something that Ita Corridi mentioned that is the fact that we’ve changed the way in which we present our segments. I’m sure that you’ve noticed that.

Those of you who already looked our info pack already noticed this change, but we will also see that on the slides. We’ve changed the way in which we present the results, and we’ve changed the segments. That’s something that we’ve already mentioned during the presentation of Strategy 2023. The energy of tomorrow starts today. These new segments reflect strategy.

We’ve talked about the fact that our strategy is about an integrated ecosystem, and that’s how we manage our company on the daily basis. We will be also presenting our operational results in this way. What is important, all of the information that I will be showing you today are things that we can compare. That is we’ve transformed the data from the last year to the same structure. As a result, you will see data that can be compared to each other.

Why are we changing the structure of our presentation and the changing of management? We want to reflect this integrated character of our business. As a result, we also want to show the changeability of the market. We’ll have a dedicated slide that will present this changeability. It will show how we build resilience of the company and our financial results.

This integrated cyclical model, it’s today very important. Today, that is in the moment in time, the historical moment in time where changeability in the market is very high. We are continuously working in the situation of a big unknown. I can say that the only thing that we can be sure about is that the future will be still very much changeable and unknown. This integrated system gives us a sense of stability.

That was just a few words of introduction. Now let’s focus on the most important in financial results and operational results. Ilek mentioned that this quarter was very good. Opening the discussion, I would like to say that yet again, it was a very important quarter with a lot of work and good results. Income resulted to more than 73,000,000,000.

It’s billion lower than last year, but what’s important, it doesn’t really influence the possibility of Orlan is influenced by the global market. This is how we shape prices to our consumers. What does influence the business is volumes, operational activities, the real effects of work of our employees. Let’s focus on the income for EBIT. What influence smaller income?

Lower prices of petrochemical and refinery products as well as lower prices of gas and fuels. We also had lower sales volumes when it comes to downstream and consumers and products. It was compensated to a certain degree by an increase of sales of gas as well as distributed volumes in energy. What is still the most important index when it comes to profitability and what was marked by IREC is EBITDA lift in In our sector, this is the index that tells us what the profitability is.

Even though the macro environment was very changeable, we worked out 11,600,000,000.0 of EBITDA. That is 40% increase. This is the best reflection of the integrated business model and the fact that it really supports us when it comes to the situation on the market. We’ve been talking a lot about the fact that this integrated model helps our resilience. This is how EBITDA builds our resilience.

The segments that contributed the most to the increase or that supported the result of EBITDA in this quarter are segments energy and consumables and products. They noted very solid operational results. They are partially restricted by downstream because of lower refining margins. However, what was an important support for our financial results was the result of regulations. That is the fact that we didn’t have to support the final consumers.

Last year, we just remind you, in the first quarter, we’ve paid 7,700,000,000.0 to support our final consumers of energy. This year, the results of Upstream and Supply, which last year was influenced by this support, This year, it’s 5,500,000,000.0 of zwotik. Our cash inflow grew by more than 4,000,000,000 zwotik. This was supported by a lesser engagement of cash in the capital. At the end of the first quarter, our debt is around zero.

However, I have to be more careful. And I have to say that together with the accommodation of dividend and our ambitious investment plan, this situation will be changing during the year. Let’s take a look at these results. Let’s focus on the materials and model margins that is our macroeconomic environment. This macroeconomic environment was very changeable.

We can see that on these few diagrams that that are presented here. I would just comment certain indexes as they relate to our operational segments. Segment upstream and supply, especially extraction, both in Poland and abroad, mainly in Norway. It was supported by higher gas prices. Gas prices year on year were higher by 54%.

This result was restricted by lower prices of oils. I would just remind you that 75% of our activity is related to gas and one fourth is about oil. However, the increase itself influenced negatively when it comes to our financial results. In the segment, downstream segment, what is the most important one, most important thing is the lower refining margin, which is lower by 46 year on year. This is a result of normalization of refining margin.

They are at a very high healthy level. What we’ve observed during the previous quarters, that is very high levels in 2022 and 2023, was mainly linked to problems of the market after the pandemic as well as the Russian aggression on Ukraine. These lower levels of margins, both refining and petrochemical, will have their consequences in the results of downstream segment. The petrochemical segment and margins, which are lower by 31%, these are also results of a very hard market environment in the petrochemical segment. Here, we have a very high supply of products imported from The United States and Asia.

Energy, here, we can observe a positive impact of the prices of electricity. They grew by 38%. However, we have to remember that the price for the final consumers is still limited within the regulations. Let’s take a look at EBITDA. As we said, this is the most important index.

It is really worthwhile to focus on its development in this quarter. Taking into account this changeable environment that we’ve mentioned and market trends, the results of each of our segments are very good. The two most contributing segments are upstream and supply as well as energy. The higher part of our slide shows you the contributions of each segment to the result of EBITDA. At the very bottom, you can see the changes year on year.

Now very shortly, I would like to tell you about the key elements that influence these changes when it comes to upstream and supply. Lack of right gas write down, higher sales volumes and negative macro environment, especially influencing gas trading as well as lower spreads downstream. Normalization of margins, something that we’ve looked at a second ago, maintaining market pressure in petrochemical petrochemical industry as well as lower sales volumes. Energy. Here, the most important factor was sales volumes as tariffs, both for gas and electricity.

Consumers and products. Here, I’ll just remind you, this is an important change to our way of thinking. Since this year, we are introducing in consumers and products both sales of fuels and electricity and gas to our final consumers. Here, the change year on year is the effect of a good results of gas trading supported by higher sales volumes. And now going to the details for the sec of the segments, we’ll have four slides that we talk about the details.

Upstream and supply. Here, we have a bid delivered of 5,400,000.0 billions, and it is higher than last year. We are presenting you the results of this segment splitted into geography in Poland and abroad, mainly in Norway. Both of these markets, Poland and Norway, are responsible for 90% of our exploitation volumes. That’s why they are the most important for us both in our daily work as well as in communication of our results.

It is worth notice that here you can see that 375% we are exploiting gas and only in 25% oil. The daily average of exploitation is two ten kboe, and this is a little bit lower than last year. It’s a natural consequence of the fine of the finishing of the reserves as well as failure in one of the reserves. What is important, our team in Norway very actively answered to the failure by increasing exploitation of other reserves. In Poland, we exploited 9.6 we produced 9.6 terawatt hours and 1,700,000 of BOE in Norway, Twelve terawatts of hour and 2.8 BOE.

And it gives us EBITDA at the level of 2,200,000,000 in Poland and 2,700,000,000 of exploitations in Norway. What was important and what we’ve seen in the previous slides that something that supported the results of the exploitation segment are gas prices, which grew by more than 50%. They were limited in by 10% when it comes to lowering of the gas as prices as well as strengthening water against Norwegian crown. Gas is more than 4,000,000,000 EBITDA, and here we’ve got the adjusted effect of the lower spreads. The level of margins of gas was lower.

And even though we had higher sales volumes, the result was lower by €6,300,000,000 in this segment. I’ve also mentioned that what is very important about profitability of upstream and supply is the regulation effect as well as the fact that we didn’t have to support the final consumers. According to our strategic assumption, we are working on increasing the exploitation volumes in the Norwegian shelf. We will take a closer look on our investments later, but here, I’ll just like to say that in Upstream and Supply, we are planning more than €11,000,000,000 of investment. And Yggdras and Lifernis are value up to 3,000,000,000 in here.

Here, the main player is Aker BP, and we participate in that. This is one of the key investment in this segment. Downstream, here, IREC also introduced this segment a little bit. This year, the situation is hard. It is really hard to manage this segment because of the market and macroeconomic environment.

It can be also seen in the results of the segment. Downstream is €1,700,000,000 this year, as well as we noted a lowering by more or less billion euros We noted that both in refining and petrochemical industry. In refining, the results are influenced by a weaker macro environment, a lower refining margin. They were lower by 46%. This translates directly to profitability of production.

We’ve also noted a lowering of volumes. Sales volumes were lowered by 4%. The most important lowerings were connected with oil. These were the results of the lowering demand. We noted a lower demand on the market, a high activity of our competitors.

Operationally, we also had restrictions connected with planned maintenance stoppage in Potsk. Then we also had stopped maintaining stoppage in other places, which are mainly planned. So we expect that these results would influence positively the results of downstream as well as refining activity where higher margins as well as strengthening water against the dollar. In petrochemical industry, what we’ve already mentioned, this effect is so important that it is worth repeating. Petrochemistry is still dealing with very hard environment.

Petrochemistry margin were lower. We’ve also noted a lowering of sales volumes in all of our product groups in petrochemicals. Together, these were lower by 12%. The sales of fertilizer, for example, was lower by 6016%, sorry. And this is mainly because of 10 of stoppage in Polana in our Czech partner.

We are planning of restructurization of these assets in Polana because of the, economic situation. We also, had stoppage of work in Anfield, where we had a power failure failure, which influenced volumes of production and sales. We also have lower PTA sales volumes by one third and polyolefin by almost 10%. This is because of stoppage in the first quarter. Additionally, the results of our petrochemicals results were negatively influenced by the strengthening of the euro against the dollar.

The next segment, energy. Here, we’ve got higher EBITDA by 300,000,000.0 as well as grow by €600,000,000 The increase of this result is mainly because of distribution. Distribution volumes, both when it comes to energy and gas crew. There were higher tariffs realized by our operators. Another factor that supported our financial results was heating.

We had a colder winter compared to the last year. The temperature was lower. That’s why sales volumes were higher. Hydrological and weather conditions were much harder, and they didn’t support, generating renewable energy results. Even though we had a bigger power in renewable energy, we’ve noted a lower result of EBITDA in this segment.

And this negatively influenced the segment. Segment energy, what we’ve also seen at the very beginning presented by IREC, this is a segment in which we concentrate on development and in which we are planning important investments. We will talk about the details later, but here I would just like to say that investment in offshore wind production as well as opening of port in Hueba, which will be a service and maintenance base. This is something that we’ve built from scratch. The infrastructure that we’ve constructed there together with our partner will have an important will be very important, for maintain for supporting the future offshore wind.

We are also building two CCTGs in Grujans, Endostravenka, and we want to invest 60 water. They will produce 1.3 gigawatts, and we will take a look at the details later when it comes to the slide about investments. And the last operational segment, consumers and products. Here, we’ve got 1.2 EBITDA LIFO, and it was more or less fifty-fifty fuels and others. The increase of the result can be seen in retail when it comes to gas and oil.

Here, we’ve got a better result because of the better results of gas because we had higher sales volumes. When it comes to fuels. It is worth noting that we maintain the profitability of selling fuels in Poland, bettering of profitability in Germany and Lithuania as well as higher margins. They grew in The Czech Republic and in Poland. Some details when it comes to volumes.

The sales of fuels was lower by 2%, and this is mainly because of lower sales in Austria. This is the result of a decision that we took last year, about eliminating sales of cheaper fuels that came from Russia. This resulted in customers turning to our competitors. We are have more or less 3,000 fuel state fueling station. The alternative fueling stations grew by more or less 90%.

And these are mainly electricity refueling points, that is electricity charges. And now investments, the group used 6,200,000,000.0 for investments. This can be compared to the situation last year. In the perspective of the whole year, we are maintaining our prognosis of our assumption of, spending €35,000,000,000 70 5 percent in 75%, these are developed investments connected with developments. And now let’s take a look at the segments.

Very rarely, we get to take a look at the details. So I think this is one of the best occasions to do so. In Upstream and Supply, we are also having looking for new reserves, and we are analyzing new reserves. We have successes and one well, let’s say, failure, one exploitation in Tomcat and one other place. Here, we don’t really have a confirmation of hydrocarbon in the reserves.

As a result, we have to change our plans. We’ve planned 1 billions water for this project, but we will have to be very flexible about allocation of the capital to the MNH projects, that is the possibility of buying the deposits. We’ve also talked about this during the presentation of strategy that in our allocation of capital, we want to be flexible and to realize our strategy through our own work and organic grow as well as nonorganic work. The next exploratory project is something that gave us a big success and something that we talked about a few days ago that is online upstream nowhere together with other companies discovered new reserves of hydrocarbon in retrospect. Here, we assess each to be, 3,000,000 to 7,000,000.

When it comes to our reserves, we focus mainly on Fenris and Idrasil. Here, we continue our works connected with prefabrication and installation of the construction of platforms, and it’s supposed to take place this year. Segment downstream. Here, we have very important investment works in two important investments. The first investment, new chemistry project that is installation of plants to project monomers in ports.

Here, we have the project advance in 83%. When it comes to basic in construction, we are going forward. However, we are talking with the consortium when it comes to technical issues and financial issues, and we are keeping the agenda up to date when it comes to supporting infrastructure. Here, we are at the 40% level. And here, the works are getting faster.

The main result of the quarter is the fact that we are focusing on the annexes that will sanction all the changes. Another important investment in downstream is the installation for in Mojekie in Lithuania. This installation is worth €1,000,000,000 And here, we are very advanced when it comes to both the main installation and infrastructure supporting infrastructure. A few examples, finalization of pipeline, piles, construction of equipment. As you can see, their works are ongoing.

Energy. our focus on the offshore wind plant in Baltic in 2026. We will have the first energy produced by this offshore wind plant Baltic power. Here, we are preparing to the installation of turbines. Irek mentioned monopires that are currently being installed.

We’ve mentioned maintenance base in Weber a few times. The level is very at a very advanced level. Another neighboring project, Baltic East. Here, we are still ongoing when it comes to dialogues about the environment. We are focusing on the strategy when it comes to buying and using local content as in a maximized way.

Another investment in energy blocks in Ostroenka and Gruyans. And some examples from the last quarter in Ostroenka, we have constructed the next parts of the plant. We are at the advanced level when it comes to pipeline in Gruyans. Here, the works are still ongoing, pipelines and so on. We are at the very advanced stages.

Here, I would like to draw attention to certain things. I will start with something very good, something that we haven’t mentioned yet. Yesterday, we received a confirmation of Moody’s Energy A3 with stabilized perspective. It is a retrustworthy reflection of our resilience of our business model. The financial position of the group is very good.

At the end of the first quarter, we had 1,600,000,000.0 net cash. We reduced our debt mainly because of a good generation of cash from our core business. The debt is almost zero. And what is also important and worth highlighting is the fact that we achieved very good effects when it comes to sources of funding. They are very well diversified with the average deadline 2029.

You may remember that at the beginning of the year, we issued bonds in American dollar and this issuance allowed us to postpone this deadline by one year. It is super important because this structure helps us to mitigate the risks. And the last slide that we would like to share with you, Here, we would like to talk about the potential results of the group this year. I will focus about the changeability of the first quarter and about our expectations to in this year when it comes to upstream and supply. Here, macroeconomic environment, higher prices of gas supported the results of upstream and supply.

The positive effect of spread between Henry Hub, the American, and Teta f, the European one, was maintained. This influenced the good results of import from The United States to Poland. The spread that we observed now is lower than the one that we observed three However, it still has a positive effect. Its scale changed, but this support is maintained.

For other segments, the effects or trends that we observe are similar to what we’ve seen at the beginning of the year. It allows us to say that we feel comfortable with the consensus that we publish after the expectations of all the analytics. However, I’d say that we approach it a little bit more cautiously. We see that a bit more of risks, but we still think that our integrated model and effectiveness of operations will allow us to get expected results. Thank you very much for your attention.

As I understand, now we have a time for questions and answers. Yes, thank you very much for the presentations. As you can see, well, talking about this business takes a lot of time because it’s a big business, and it has a big footprint and big influence when it comes to economy. But now we would like to invite you to ask questions. First of all, we will invite people who are here with us, and then we will have time to answer questions from the Internet.

Please, to make it fluent, two, three questions. And please tell us who you are. I will have four questions, but they are connected. The first question is a very general one when it comes to consolidation of the market. When it comes to fuels, we had information about Shell and BP.

We have also heard from the market that there are another transactions going on. I would like to ask about a potential scenario when it comes to the situation on the market. Thus, the first question then, I would like to ask about the perspective for the next months of this year. What do you think how will the sales on the fuel station look like? The third question, Vitae platform and something that you’ve said that you’ve talked about that is integration of the system and the fact that it’s building this part of the business.

I would like to ask about at what stage the platform is being finalized? And the last question, a very traditional one, that is about selling of business online, Pachka. Where are we here and what will happen in the next months? Thank you very much for your question. Okay.

We will I will just start consolidation of the market Shell BP and our competitors. Our role in this market, in this segment it’s a very small one. We are a very big player. We can’t consolidate the market. We are observing the situation because that’s what we have to do.

We observe what our colleagues from our other com companies do. If Shell NBP, joined forces, then they will become the second biggest network in Poland. They will have more than 1,000 fueling stations. We’ll cooperate because that’s what I can say, that’s something that’s outside of our realm. Similar to mall, mall is our client.

But at the same time, there are certain history between us when it comes to stations in Hungary. This is something that we stimulate us to work forward. What about sales? I hope that the sales will be going well. The prices are lowering according to Eurostat.

We’ve got one of the lower prices when it comes to fuels in Europe. The average price was $5.75 I would just remind you our campaign from the first May weekend. The fuel could be bought the product, sorry, could be bought by lower prices. That’s why we’ll be fighting for a very high influence of the market. When it comes to the status of Vitae, I don’t know.

I don’t know if we are prepared. Do you know anything about that? Yes. We are working on that. But when it comes to technology of the development of the application, you can observe the changes on a daily basis.

But at the same time, we are working on creating an integrated offer for final consumers. And here, it is too early to say when the offer will be available. However, the works are ongoing and you will see them in application if you use it daily. And Orland Patka. Here, we’ve done a lot of work already.

We have some key successes in the first quarter. We optimized the activity of our parcel lockers as was our delivery services through Ola and Pachka. So we split it our delivery service from Ola and Pachka. Today, we’ve got an integrated business within Ola and Pachka and the team which concentrates of this activity. In the future, we will focus on building a precise value of this business, working on finding partners or selling the business.

We don’t really have a precise plan today that we could share with you, but we are on a very good pathway to realize the plan of optimization when it comes to actives in this area. What are the plans at the end of the year? And I would like to also ask about investments in renewable energy when it comes to your competitors. You’ve mentioned BP. In their strategy, they recently decided to downsize their investment when it comes to green technologies?

Thank you. The United States, we’ve talked less about reserves, but more about midstream. And this is the segment that we would like to be engaged in when it comes to transmission. And we are currently having talks. In the future, we will continue them.

If we invest please notice that they say if we invest, this will be connected with access to upstream. I don’t know when we have the decisions. These are very hard topics. They’re requiring analyzing the market access to the market prices. But I hope that we will be able to achieve our goals in short perspective.

Capacity market. Additional auction should take place in July. We would like to be ready with two projects, Gurujiangs 2 and Gdansk. We don’t know if we are ready. Everything depends on talks with potential suppliers.

On our side of the works when it comes to these actions are done. We are only waiting for the offers from our partners. If we have these offers, we will participate in July, if not in December. For December, we are preparing Shekirki project, and we hope that it will be launched then and that we’ll get necessary agreements. Renewable energy, this is a big challenge for everybody.

BP might be looking at the issue globally in its strategy change at the beginning of the year. They assume that part of the business will be moved from Europe where the pressure, especially the legal pressure, is so high that they don’t really see any possibility of development. And they transfer to the regions where the legal pressure is lower. Here, I’m talking about expectations of legislators when it comes to renewable energy. We don’t have such comfort when comes to this issue, but at the same time, we’re analyzing all the projects that we have.

And we can see potential for the company in developing renewable energy sources. That’s why we are talking about offshore wind plants. That’s why we are seeing a possibility that we will be realizing these projects. Thank you. Andre Patanovski.

Andre Patanovski. It will be hard for me. I haven’t been sleeping for thirty two hours. We are sorry, but the interpreter comes here the question. Orlan has more than 90% of shares of Energa.

During the last conference, you stated that the results the sentence was carried out. However, the codex of listed companies states that the listed company should go back to their previous state. If the general meeting hasn’t carried out the sentence, first of all, does the company want to carry out this sentence wholly? First of all, has this company put aside sources for potential payouts for the shareholders. You’ve also mentioned the growth of Olin.

During the last conference, you’ve also mentioned the growth of Energa. So what about the losses of Energa? The interpreter can’t hear the question asked of Mike. Thank you that we are here with us. You that you are supporting Energa.

Energa is a very important element of Olin. We’ve talked about this at the beginning. We’ve talked about the amount of money that we invest in Energa and the greed that Energa oversees. We are proud that Energa is a part of Oman. I don’t understand the first question.

We’ve carried out the sentence. It was very simple. We were to delete the application when it comes to buying out about the shareholders that is delisting. We did that. That’s why the shares are still publicly available.

And if someone wants to get rid of them, they can sell them. Do we have money put aside? We don’t have a reserve created for that because we don’t have any legal basis to do so. There are no there is no sentence that would oblige us to do so. If you are asking theoretically, President talked about our financial situation, and I can ensure that if there was such a need, we do have financial resources.

I don’t remember from the last conference what the Enagar result was. Well, it’s lowering. When I’m done, I will give you voice. This is a financial market. Here, the actions are growing.

They are going down. I do understand the market. I’ve been a broker for some years. The question was asked of Mike. The interpreter can’t hear the question asked of Mike.

The situation was solved. The goal of shareholders was to delete the delisting. It was carried out. Thank you very much. But thank you very much for your engagement.

It builds our conviction that we are trying to do the good thing and that sometimes we have to disagree. I do understand. But the goal of developing is something that is important for both of you and us. The interpreter can’t hear. For years, there have been possibilities, and there were periods where the price were up to forties, was it?

Well, we both care about Energa. I’m sorry. I still have some questions in the room. I would like to move forward. One question.

Karol Bisra, Energa Thika, the Vice Chatura. In April, Orlan talked about acquisition of Orlan Olefina. I would like to ask about the process. What is still to be done? Will be there any costs?

The acquisition of Orlan Olefina is at the legal stage analysis of legal stages, I cannot add anything. I would like to ask about power auctions because the market of gas fired power plants is very hot. I’m asking about Shekirki here. Will that be built at the same time? And up to what time will you have to have the offers from your contractors so we can start in auctions?

And the second question is about arbitrage with Venture Global. I’ll start with the second question because it’s easier. I wouldn’t say that it’s going slowly. International arbitrage has its own way of working and the deadlines are very fast. So I think that this year, we won’t see any changes.

Magda, please remind me, but I think that the first meetings from arbitrage will take place in January of the next year. So they are not going very slowly. This is a standard procedure of the international process. The first question, I would just tell you that at twelve, I have a meeting with Siemens CEO, and we were talking about that because it is one of our suppliers. I hope that we will get these offers when it comes to the deadline, so we can apply in July.

I think as first I hope as fast as possible. On the second hand, well, if we are working in this business, we know what the offers will be when it comes to the framework. So apart from the fact that we don’t have the offer, we still are preparing for the auction. So even if we get the results very late, I think we’ll be ready in July to participate with these two projects, Gruyansk II and Gnaiske. I have two questions.

I would like to ask about integration of retail when it comes to cooperation side. How is it going? Do you have any formal procedure like with upstream, what you’ve published that you’ve published? And the second question, about five investments in gas in Norway that you’ve mentioned. Will there be enough to realize strategic goals when it comes to exploitation in Norway?

What will the volumes will be? Are there new reserves, old reserves? Can you say anything more? This all called Kangaroo project is still ongoing. We are currently analyzing this project.

I can’t really say when we be able to realize this project, but this is a very hard project also when it comes to the legal situation. I can only promise you that our intention is to finalize the project as quickly as possible, but it’s not easy. The five new deposits we’ve mentioned, they are the new deposits. There are the environmental decision stage and we are analyzing these deposits. So three of them will be launched.

So we have to check the economic value of these deposits. If we have decision to launch this exploitation, well, this process will take a few years. So don’t expect any of them this year. We don’t know anything about the volumes yet. I’d like to give voice to our to those of us who mentioned us online.

We know that river transportation in new chemistry is delayed because it got simply stacked on the river with large volume elements. Will it have any influence on the agenda of this investment? Well, certainly, will influence our agenda, but it’s not very important. They are not significant. We will be able to change the situation in the future.

I will just go back to our questions online. We have many questions there. For the majority of them, the majority of them will be answered online, but we’ll just ask three questions. Something about new chemistry, a short update. Someone is asking about an update when it comes to new chemistry.

Is it following the new agenda and planned volumes? Yes, it is going as planned. Our plan is clear on the September 30. We would like to present our approach to this project. We want to have a complex approach and nothing changes when it comes to that.

Investment package, recently when it comes to offshore, the information about inflation was widespread. Do you see any influence on your project? We do know that some projects realized abroad are facing financial pressure and investors drawback. But Poland, we are in a different situation. We are pioneers in the market.

The weather condition, the wind conditions on the Baltics are very good. So we are quite optimistic when it comes to our projects. When it comes to our subcontractors, we are noticing certain, I don’t want to say delays, but maybe challenges that they are facing. They are connected to the fact that there are many orders for new equipment because we’ve also ordered a new type of turbines. There are certain technical technological challenges.

However, we don’t see any significant indicators that would tell us that the project will be delayed or that will be more expensive. That’s the answer for today. And the last question from the same area. There are going consultations when it comes to atomic nuclear power plants in Poland. Does Orland take place in the take part in this discussion and other discussion about SMRs?

Obviously, that we are engaged, in not in a very high scale. Right now, we are one of a very few advanced players when it comes to introduction of this technology simple land. We get very positive information from Canada when it comes to agreements given by the governing institutions when it comes to the next licenses. This is something very positive. Two months ago, I was in Darlington with mister Chernetsky.

We’ve seen the development of the project. The it is going very well, and our Canadian colleagues are very optimistic. Two I think two weeks ago, the first cost analysis were published. In the first analysis, we can see an increase of costs. But after detailed analysis, we can see that it’s resulted by factors that are not present in Poland.

So we are still interested in this project. We’ve mentioned that up to 02/1935, we want to have two SMRs. This question wasn’t asked, but I’m certain that it will. We are still negotiating with our partner when it comes to the new shape or functioning of this project. It is going beyond what we ambitiously assumed we will be able to achieve.

But I hope that we will find a consensus of our partner. Thank you. Thank you very much for all your questions. Thank you to everyone online. Thank you for all the questions.

If something wasn’t answered, it will be answered in writing. Thank you very much for presentation. Please enjoy coffee, and see you in September.

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