BofA warns Fed risks policy mistake with early rate cuts
Orlen Group reported its Q2 2025 earnings, showing a revenue decline of 13% year-over-year to 61 billion PLN, while EBITDA increased by 2.4 billion euros year-over-year to 9.2 billion euros. The company announced a record dividend of 6 PLN per share to be paid in September. Despite challenging market conditions, Orlen’s stock price increased by 0.86% to 70.02 PLN. According to InvestingPro analysis, the stock appears fairly valued at current levels, with a solid Financial Health Score of 2.72 (GOOD), reflecting investor optimism in its strategic initiatives and financial resilience.
Key Takeaways
- Revenue declined 13% year-over-year, reaching 61 billion PLN.
- EBITDA increased significantly, up 2.4 billion euros to 9.2 billion euros.
- The company announced a record dividend of 6 PLN per share.
- Stock price rose by 0.86% following the earnings announcement.
Company Performance
Orlen Group demonstrated resilience in Q2 2025, managing to increase its EBITDA despite a downturn in revenue. The company’s strategic focus on diversifying its crude sourcing and expanding renewable energy projects appears to have bolstered its financial performance. InvestingPro data shows strong fundamentals with a current ratio of 3.33 and an impressive Altman Z-Score of 5.77, indicating robust financial health. This comes amid a challenging macroeconomic environment marked by lower margins in upstream, supply, and petrochemical segments.
Financial Highlights
- Revenue: 61 billion PLN, down 13% year-over-year
- EBITDA: 9.2 billion euros, up 2.4 billion euros year-over-year
- Net Debt: Approximately zero
- Cash and Cash Equivalents: 500 million PLN
Outlook & Guidance
With year-to-date returns of -26.66% and revenue growth of 3.33%, Orlen remains committed to its growth strategy, with a CapEx spending target of 5 billion euros, 75% of which will be allocated to growth projects. Get deeper insights into Orlen’s growth potential with InvestingPro, which offers exclusive ProTips and comprehensive financial analysis for over 1,400+ stocks, including detailed Pro Research Reports that transform complex data into actionable intelligence. The company expects refining margins to remain comparable to last year and is comfortable with its EBITDA targets for 2025. Orlen is also advancing its renewable energy and energy transition strategies, indicating a focus on long-term sustainability.
Executive Commentary
Reneur Svanfara, CEO, emphasized the company’s commitment to affordable energy, stating, "We are looking at cheap energy. We drove down the prices of electricity for 7,000,000 100,000,000 of Poles." He also highlighted the company’s focus on energy security and low prices, saying, "Our main concern is security and the lowest possible prices of energy, broadly understood."
Risks and Challenges
- Macroeconomic pressures could impact future revenue and margins.
- Intense competition from imports, particularly from the US and Asia.
- Seasonal variations in energy and gas sales may affect short-term performance.
- Ongoing negotiations with Naftogaz could influence supply chain stability.
- Achieving zero-emission goals by 2050 requires significant investment and innovation.
Q&A
During the earnings call, analysts inquired about Orlen’s negotiations with Naftogaz for gas supplies and progress on Small Modular Reactor technology with Sintas. The company reiterated its commitment to zero emissions by 2050 and is exploring strategic options for the Energa Group. Additionally, Orlen is focused on maintaining the lowest possible energy prices for consumers.
Full transcript - Polski Koncern Naftowy Orlen SA (PKN) Q2 2025:
Unknown Speaker, Initial Presenter, Orlen Group: In second quarter, a lot has been going on. In June, we announced that there will be no drop of Russian crude. We have relieved the entire region from Russian crude. We are looking at cheap energy. We drove down the prices of electricity for 7,000,000 100,000,000 of Poles.
We have installed the first Polish first ever Polish offshore wind turbines in the in the Baltic Sea. And the Baltic power will deliver clean energy. We will pay, this record high dividend at 6 PLN on September 1. Are bold and responsible decisions that we take on a daily basis at Orlo takes us take us closer to our goal. The energy of tomorrow, let’s start today.
Good morning, everyone, and welcome to the earnings call at which we’ll present and discuss the consolidated financial results of the Orlin Group after the second quarter. More details will be discussed by Emmanuel Schonfara and Magdalena Bartosz in a second. It is a pleasure to see you at Orlean’s headquarters. There are a lot of people in the room with such a great turnout. My name is Malenk Freyig.
I’m the IR Director, and I’ll welcome all of you. And you are very much welcome to ask questions. Without further ado, the floor is yours, Reneur Svanfara, President of the Management Board and CEO. Good morning, and welcome to our headquarters. As you saw, there are a lot of tax tasks for the CEO.
And sometimes, I am even asked to star, to be a star in a video such as the one you have just seen. As for the performance after the second quarter and the first half of the year, we are keeping up with the momentum and delivering on our commitments. At the beginning of the year, we decided to take on a lot of challenges looking forward to the future. We talked about what happened in the first half of the year, but I will repeat it one more time. There is no longer Russian crude across the Odland Group.
And we do hope that there will be no Russian crude in the future across the region and the world. We believe it, and we’ll stick to it. During the construction of the first offshore wind farm, Baltic Power, we have already installed half of foundations as well as turbines, first turbines. And we believe that next year, it will be brought on stream, and it will supply electricity to almost 1,500,000 households. And it is important for the Polish economy because we believe that will contribute to the construct the the building of, the brand new field, an area of the Polish economy, which will provide equipment for this particular area.
Our competitors have already started, and so this new area of our activity will be useful for them as well. We dropped down the price of gas by 15 percent in the first half of the year. It is important because those who use gas to heat their households will be able to see lower gas bills by as much as PLN 1,000 per year. We care for our consumers. We will offer the lowest possible price.
At the same time, we will ensure highest possible security. But we do not forget about our investors or stakeholders as well shareholders as well. The capitalization of the company exceeded PLN 100,000,000. We saw record breaking results, and we have shown that we are able to operate responsibly, taking care of our stakeholders and the environment and our investors, and we are able to keep it up. Lower prices of energy translate to lower revenue.
However, we managed to double our EBITDA LIFO result, which, as we always say, together with Magda, is a key management ratio. From your point of view, you will always focus on the net profit. And as we said, we doubled, this ratio versus the next the last year. It could be or could have actually, higher. However, we still see some effects of, the wrong decisions taken by our predecessors.
Second quarter saw a lower price of energy, great investments and high profits. Let us look at the breakdown by segment. Lower prices of gas for households by 14.5%. I said that before. As of July 1, you will see lower, bills for 7,000,000,000 poles.
We increased the number of customers, the users of our Vitae app, which has become our main tool for communication with the client, going up by over 20%. We saw higher sales, for EV vehicles. It’s very important. And Marek, thank you and your team for your commitment, for your involvement, especially right now, when the great, campaign is actually going on as we speak in our fuel stations. So thank you very much.
Downstream, higher security, higher production, no Russian crude. This is something that is really important. Instead of Russian crude, we buy crude from all over the world, especially from Middle East. Thanks to our great business relationship with Saudi Aramco, we we are one of the biggest Saudi Aramco clients. But we also buy crude from the Persian Gulf, North Sea, Africa, and both Americas.
So this is the security that we promised to the Poles. What’s important for us, especially important for us, from two perspectives, from two angles, emotional and business angle, is that we are able to, work closely with our partners from Ukraine, especially with, Nakhr Navtogaz, a peer of Orlan in Ukraine, so to speak. We signed a memorandum of understanding, for cooperation and production upstream, downstream as well as strengthening of our, commercial trade and business relations. And at the same time, we consistently, provide 100,000,000 cubic meters more of blue fuel through our terminal in Stetsyn and Lithuania. And we believe that the 100,000 per month will be maintained in the future, and we’ll be able to support our partners in the very difficult situation that they are at.
We doubled the capacity of our terminal in Srecyin, strengthening, the security of this region and the region in general. And we also, completed the work on the, expansion of the gas terminal for LPG, and we involve Polish companies only in this project. And at the same time, even though it’s very difficult because, our resources have been largely exploited, I mean, resources, we are trying to step up on, the domestic production. We are looking at 4,000,000 tonnes as a target this year. And we started new drillings at the Trebuch, field, and we do hope that we will reach our target by 02/1930.
As far as downstream is concerned, we began as a refining business, and it’s still a very important pillar of our business. Even though the prospects for downstream are not that promising compared to our other business areas, it is still a great source of our revenues. We posted we secured PLN 1,700,000.0 for the production of, hydrogen fuel, blue fuel. It is very important for us and very promising, and we secured that amount from the National Recovery Plan, and we do hope that will be earmarked for the launch of two new installations. We started work on the patented multi fuel technology.
This technology allows us to, burn either gas or, hydrogen or the mixture of both substances. So this is a polished technology, and we have pioneered this technology all over the world. And we do hope that our work we have just started, will translate into, tangible results. The sustainable aviation fuel, SAF is available at three airports in Poland already. We do hope that we will expand with this product, as well, this innovative product, and we will increase the number of airports that offer sustainable aviation fuel.
We have expanded the production of biomethane with the in cooperation with KGS, as we set when we presented the strategy for 02/1935. This is one of our, areas of activity. And together with this partner, we are going to create a group that will produce and deliver, biomethane. Energy is a great construction site, so to speak. So, the first Baltic power, turbines have been installed.
Work is going on as we speak. Half of the foundations have been already installed as well as five turbines. And we will install eight more turbines by the end of the year. And we do believe that at the beginning of next year or next year, we will start supplying, electricity to Polish households. That will represent, around 3% of electricity in Poland.
The next location, Baltic East, which is adjacent to the Baltic Power license is, getting ready to the auction coming up, in December. We are in the process of securing environmental permits. We want to take part in this auction, and we do hope that we will win it. We have launched the offshore installation terminal in Svinoviste with a bit of a delay versus our original plans. We do not believe this is our fault.
We believe that the work that started a couple of years ago on the construction of this particular, farm, took a little bit too much time. So we, did not have a chance to actually tap into the synergies, but, we still keep cooperating with our partners, and we do hope it will bring fruit. We also launched, the installation terminal in Weba that will work, twenty fourseven in order to make sure that Baltic Power wind farm operates as planned. Grid upgrade and extension, we signed a contract for the upgrade of, power grids across Poland. We have already increased, those upgraded grids.
We, connected, 700,000 new customers. As far as corporate functions are concerned, this is very important for all of us, but for me specifically, is the fact that we secured we increased security, the and safety of our employees. So, this ratio has been doubled. So we will do our best in order to make sure that our employees, work in a safe manner. We issued green bonds, and Magda will discuss it later on.
The fact that we sold those gray the green euro bonds, in twelve minutes with an oversubscription, by more than, 2.5 shows that it, met with a lot of interest, among investors, and it is a sign of the trust as well. And we are very proud of that. In terms of our, cooperation with the sports, world and the institution of culture and educational institutions, is very important to us as well. We, cooperated with MIT and, Cambridge University. We organized the Powering Future Conference, and we believe that the very start of, our cooperation this is a very start of cooperation with such renowned, institutions, research institutions, all over the world.
And what’s really important to all of you, we will, pay out a record breaking dividend at 6 PLN per share in September. Good morning, everyone. I’m also very happy to see you in our headquarters, And our and my task will be to discuss our financial performance in quarter two. Irek has mentioned a bit about it, but I’ll try to take a deeper dive for you to understand the drivers behind our financial performance in the second quarter. Let us start with revenues.
Revenue in the second quarter came in at nearly PLN 61,000,000,000, going down by around 13% year on year, which, just as in the first quarter, was caused by the macro environment. What’s really important, however, is the fact that those lower revenues did not translate into lower EBITDA, which came in at €9,200,000,000 going down by going up by €2,400,000,000 year on year, as Irec has mentioned, and I will repeat it and emphasize it again, we are always looking at, our EBITDA LIFO ratio because this is, the ratio that we and our, other place in market consider the most efficient ratio of our business. The fact that we did not have any windfall, gas windfall charge in the second quarter, is really important because in the second quarter, 2024, it represented PLN 7,700,000,000.0. At the same time, we, want to emphasize the fact that, again, as a group, we functioned and operated in much more challenging macro environment versus 2024, especially in terms of our margins for upstream and supply as well as petrochemical margins and refining margins in downstream. Therefore, the fact that we exceeded PLN 9,000,000,000 in EBITDA in a relatively weaker quarter is very, very solid.
We have increased our cash flows from operations year on year. On the one hand, it was related to higher, operating performance, operational performance, but on the other hand, we had lower, working capital, and this was due to, lower prices. Our net debt is around zero at the end of the second quarter, which is comparable to quarter one. At the end of, the second quarter, our cash and cash equivalents came in at PLN 500,000,000.0, which is a great point for us because we are getting ready to pay out the highest ever dividend, to our investors at, €6,000,000,000 per share. We had the issue of green bonds.
This was not the only measure that we’ve taken in order to finance the greatest investment and CapEx plans, in the group’s history. So, these included, national recovery plan, resources and the agreement that we had with the European Investment Bank, not only those green bonds. A lot has been going on, therefore, and I would like to thank everybody who is involved in the, raising of the financing and securing of the financing for our activities. As I mentioned before, the second quarter should be considered to be seasonally weaker, against the background of our all year round operations. This is due to lower, sales of energy and gas in summer months.
Obviously, when it’s, hotter outside, our sales go down, but also we have maintenance breakdown breakdowns, and overhauls. So looking at our operational data year on year, starting from upstream end supply, production of, gas and crude went down by 1116%, respectively, which was due mainly to our work on Odlenglanga Phase 3 field, which was actually closed earlier than planned, and, it contributes to our performance already. Wholesale of gas went up due to higher demand among our industrial customers as well as higher prices. Refining, sales was similar to last year’s. However, in terms of our petrochemical sales, it went down, which was due to very competitive markets and higher imports to Europe on the back of high imports from The United States and from Asia.
Production of electricity went up by 27%, which was due to higher installed capacity, which we added to our group, especially in the area of renewable energy sources, but also due to the higher production of our conventional units on the back of higher demand from operators. Heat production went up by 9%, which was mainly driven by lower temperatures in May. You might not remember after the hot summer, but May was a very cold month. So seasonally low temperatures in the month of May translated, into distribution of gas, which actually went up year on year in general, but also in terms of sales of gas and the segment of consumers and products. Wholesale of gas, of fuels, stayed comparable year on year.
On the next slide, we’ll analyze the impact of regulations and macro environment on our segments. I would like to look especially at the higher result of upstream end supply, which was mainly due to the lack of the windfall, gas windfall charge. Another positive driver year on year were higher price of gas. However, we had the negative drivers as well, lower prices of crude and lower margins on wholesale. Lower performance of the downstream segment were due to lower margins, both for refining and petrochemicals, but higher performance in the energy segment was due to higher volumes of gas distribution.
In terms of consumers and products performance, the higher result was due to higher, sales of gas and the maintenance of margins. What’s also important in this slide is the fact that the performance of downstream segment in the second half of the last year were strengthened by the compensation, on the back of the breakdown, of one of our installations. We did not have the compensation this year. Therefore, results cannot be compared. Let us look at our investment, plans and CapEx spending.
We decided to, spend, nearly €14,000,000 translating into 40% of our planned CapEx spending. This is comparable to the levels that we saw in previous years. Throughout the year, however, we will meet our CapEx spending targets at 5,000,000,000, of which about 75% will be earmarked to growth projects. Let me recap by commenting on LIFO based EBITDA for the group versus previous years. This slide presents the main drivers that impact our segments.
And what’s important here is the fact that the refining market environment is very positive. It supports our performance in downstream. And on average, we can expect that the refining margin will be comparable to last year’s. I am mentioning it because at the beginning of the year, we took a more, cautious approach, but we expect that our downstream performance will be better than expected in the end. In terms of our other, segments, our expectations, were in line with real results.
So we feel comfortable, that we will meet our LIFO based EBITDA targets this year. Thank you very much for your attention. That would be all for, today’s presentation. And now we can move on to a Q and A session. Thank you very much for the presentation.
But before we move on to the Q and A session, we will rearrange the room. So please bear with us a little bit. We do not have anything planned for you for this break, so we just have to wait for a little bit to rearrange the room for our speakers before we give the floor over to you. Please join us, join me on stage. So first of all, I will give the floor over to you
And since the turnout is so great today, please ask one question with no follow ups, if you could. AGR Kubik Podcast Energy, what are the prospects for a long term agreement with Naftogaz for gas supplies? To Ukraine or from Ukraine? To Ukraine. So the CEO of, Naftogaz will visit us in Poland, tomorrow, and we will discuss it together and also at the meeting of the Minister of State Assets.
So I’ll be able to tell a little bit more about it tomorrow or Monday. Dominik Bradesco Poitica Insects, what are the prospects for the agreement of with Cintas, under, Orlan, Cintas Green Energy? When can we expect the signing of this agreement? And what are the next steps for the months to come? Well, we believe in that in this technology.
We, decided to include it as part of our strategy. We’re talking about a couple of MSMRs. Last year, we promised that we would strike an agreement with Sintas by the end of the year. It did not happen because already in last year, we have agreed on, the JV, and we signed a draft agreement. But the project actually progressed as we spoke.
And there were a couple of questions in terms of, the accessibility of the technology and the financial settlement. So we started to negotiate the financials. And as usual, when we start talking finance, especially in the case of such a pioneering, groundbreaking technology, this takes time. And it did take time, but I can responsibly say that whatever was said publicly by the prime minister, that we can expect a decision by the end of the year, and I believe we can deliver on that promise. And as far as the next steps to come, the project is in progress.
We are talking about two locations, Wotswabek and Stavimonovskye. So the process is in progress. There are no delays. There are no hurdles on the way for the launch of two SMRs by the end of the year and maybe earlier. Alexandra Harbin, WLP Pro portal.
In yesterday’s press release, you distanced yourself a little bit from the EU emission reduction goals. So what are the realistic goals for you? And since you have distanced yourself from this over ambitious EU policy, And do you see any risks in terms of the market and the future of your investments because, it poses a bit of a challenge? Well, we’ll keep to our promise, zero emission 02/1950. But we’re looking at what is going on around us in the world.
And our competitors, sometimes our partners, actually delay, the process, and they are transferring part of their businesses outside of Europe in other to other less ambitious regions. So we cannot, do anything about it, but we cannot, but we should not, actually turn a blind eye to it because this is a very costly process. And since we have competitors, in the market, and they have some other, options to invest their money and to be more profitable. But as we said, we’ll stick to, the 2015 goal 2050 goal. We have a very tangible, proof that the financial markets believe in our strategy, in energy transition strategy, and this strategy is a very pragmatic one and realistic one.
We, maintain a dialogue with our investors during. And we received some feedback from them on our successful issue of green euro bonds, that will be used towards those goals, and the transition goals. We also, were evaluated by an independent agency, Moody’s, for our projects, investment projects, and this evaluation was very, very good. So there are great foundations, to, maintain our trust in the market. Jenny Gazdapravna, Alexander Hovnia, I’d like to ask you about the potential veto to the wind, mill, the so called Windmill Act.
Well, it will definitely delay the process a little bit, but we believe that all our targets that we, assumed in terms of renewable resources on the shore, as far as I remember, it was 1.5 gigawatts of energy. We believe that, those decisions will not impact our target. It might impact the progress, the speed of the works, but not the target itself. The second half in J. P.
L, could you comment on the media news, on the strategic processes for the Energa Group strategic decisions concerning the Energa Group? Could you share a little bit with us about those strategic options? Our goal is to make sure that Energa remains the strongest energy group in Poland. This is an element of our strategy. How to get there is another story.
Irrespective of our own vision that we have, this, vision, must be translated into, your competencies, your experience in the market. So we decided to look at one partner, one, option. And whether this option will be accepted by the supervisory board, remains to be seen. The work is expected to take, about So the vision should be ready, early December, late November.
And together with the adviser, that we selected, we want to look at all the options that we have. You are in touch and up to date with everything, that is published in the press, in the media. We want to present all the business options that we have that come from the synergies or the lack of synergies between Orland and Energa. Andre Kopli, Gazeta de Vaarta. During the government’s reconstruction in mid July, the Prime Minister said that driving down, electricity prices will be a priority.
And I do believe that, you have received that signal because you talked about, lower prices of electricity and fuels. So what are you planning to do about it in the future in order to drive down the electricity prices in the future as well in line with declarations of the Prime Minister irrespective of your targets concerning your profits because this is what the prime minister said. The price is the priority and not, the profits of certain companies, especially state owned companies. So as you said, your wholesale results or wholesale performance went up, but the retail performance went down slightly. And what we saw in the presentation was also the fact that the profits from retail sales of fuels are going up.
So we believe that Odlen actually revamped, its strategy and takes care of retail profits, which, might not be very welcomed by Poles, especially looking at the prices of fuels, in your fuel stations versus the prices of your competitors who usually buy, their fuel, in wholesale sales from you. So will you keep up with your strategy? Or maybe the new Minister of State Assets has put any pressure on you already to revamp your strategy? Well, we do not look at it like you. We have our own commitments that, come from regulations that are enforced, the code of commercial companies.
And we take care of our, shareholders. And we will stick to those commitments. At the same time, our main concern, which was signaled in our strategy, is security and the lowest possible prices of energy, broadly understood. Energy. When I was commuting to work today, I saw, 5.57, as a price of fuel at the fuel station.
And Odlund’s fuels, are sold by a very low price, so the lowest prices in years actually. And the scale of such increases based on wholesale sales that you have mentioned does not come from the fact that we are increasing those prices, but from the fact that we are expanding our operations, our business. We expanded the base of our clients who have customers who have access to our Vitae app. And it translates into higher retail sales, not only for fuel products because in consumers and products sector segment, actually half of our, profits come from nonfuel sales. So we are expanding the packages of services as well.
And our main goal is to provide security and ensure the lowest possible prices of energy carriers for everybody. Therefore, we can talk about the lowest prices of fuel products in three years and also the low prices of electricity and other fuel energy carriers. Speaker is not using microphone, so I cannot hear the question. Enosha Przybylowski, Strefa Investorov. Six months have passed since you actually published your strategy.
What is your assessment of your performance in this period? And the second question concerns the outlook for the upcoming six months of the year. What is the mood at Orland currently? In terms of the delivering of our strategy, it is a long term strategy. Every month, we review it, and we review it quarterly as well in more detail.
Let me put it this way. I was a little bit unsatisfied with how we, were, reviewing the performance of the strategy. Therefore, we decided to introduce some personal changes. But in general, we see no threats to the delivery of our strategy. And in terms of the outlook for, the rest of the year, Magda will take over.
As I said before, we feel quite comfortable with the analysts’ consensus on, EBITDA, for 2025, and the consensus places our performance higher year on year. There’s a lot of work to be done, but the mood is quite optimistic, and it’s positive. So looking at our individual segments, we are hoping for the continuation of the trends and the positive contribution of the macro environment in the Downstream segment, translating into very solid results in this particular segment. As far as energy is concerned, we are talking about expansion. We are talking about higher installed capacity.
And as far as consumers and products segment is concerned, we are focusing on the client and on delivering, or offering the lowest possible prices of energy carriers. I would like to come back to Mr. Kublick’s question, because, yes, you are right that I have not mentioned anything about heating. And we will have a press conference coming up. So we will be able to talk a little bit more about heating during this press conference.
So I’ll invite you to take part in it. Any other questions from the room? Just a tiny detail about the past that still translates into your present. Could you comment on the suggestions of the former President of the Management Board, Daniel Obaytech, concerning the arbitrage of agreements with OTS. OLENS Trading Switzerland, is it true?
Is it an arbitrage? In the context of certain problems that we saw when United Arab Emirates did not agree to the extradition of the former director general of OTS. I never do it, but I’ll take an exception. I would recommend that Daniel Obaytak, the former president of the management board and the current member of the European Parliament to refrain from such statements. We are doing our best to recover that money, taking the legal steps that are necessary.
The money that was spent in a scandalous way based on the decisions of the former management board of Orlen and also the decisions of OTS. It never happened in history of this company to give a 400,000 million dollars to a small company with no security whatsoever. When Daniel Obaytech was President of the Management Board of Orland, we had more we saw more than 2,000 transactions with no such cases as in OTS. So it was an exception. So we do our best.
We do what we can, and we do hope that we’ll be able to recover at least part of this money, but this will be very difficult. We have engaged world renowned law firms, a world renowned, detective firms, as well we have also involved, the Ministry of Foreign Affairs. And we will do our best to recover what is possible. A question on fuel connections with the NATO system. You have suggested that we might have some news on that during the summer.
Any comment on that? The negotiations are in progress, but with no conclusions yet. No conclusions that can be published at that point. A question on the negotiations with Gas System on the Yamal pipeline. Is the negotiations still in progress in terms of the sales of the Polish section of this pipeline and the plans for Aeropole Gas, which the plans have been published.
When do you plan to implement that project? And when can we see some effects? I do not think that we can talk about high level discussions here. I believe that, after the holiday period, we will come back to more advanced or intensive negotiations. A question on the comment on the Shell versus Venture Global arbitrage.
The President of Venture Global said that they had other contracts like that to including, Orland. So any comment on that? And one more question on the president the potential veto of, the president of The Republic Of Poland on the so called Gas Storage Act. So what will be your scenario for the gas market if the veto is actually announced? In terms of your first question, it’s supposed to, start next year, and we do not comment on, other players in the market, never.
We filed an appeal in the, a protest in the American court. So, it is a different jurisdiction than the British jurisdiction that you were talking about. In terms of the veto, we do not have any comments because there is no veto yet. If the veto is announced, we will talk about it. From your recent communications, it shows that you decided to resign from the project in terms of the purchases of polyethylene, but you are interested in the port.
What’s the logic here? If you have no interest in the share of this, company, of this project, but we but you want to, buy a port. Why? Because we have a huge fuel base, an LPG base, nearby. So this would be a very important source for us.
So we are talking about it. Two last questions, please. So the first question concerning the new chemistry project. You mentioned that you were supposed to talk about it, let’s say, during the year. So what are the what is the stage on the conceptualization of this project for the Olefins project?
Do you have any update on that? And what is the dynamic of this process? Well, we promised that we come back to this issue at the September. So let’s discuss it in the during the upcoming earnings call. I believe that we will close the negotiations with the general contractor at that point.
So we’ll come back to it. Last question, please. From a shareholder. You convened. General Shareholders’ Meeting of Energa, September 4.
We’re looking at certain changes relating to the strategy. And we are also talking about the changes that will apply to remuneration of, NRGamma’s management board. The politicians of the civic platform from this area are talking about the competencies across the Energa group. So do you actually are you looking at the call for Energa shares? Because you still consider Energa as your wholly owned company, but you only have 91% of the shares.
No. What I was talking about was about a different approach to the stakeholders from this region, not the politicians, but the stakeholders. The general meeting was convened because on June 5, we changed the rules of remuneration for the management board members at Orlen and also Orlen Group companies by decision of the general shareholders meeting. And this is why we decided to convene the general shareholders’ meeting at Energa. We treat Energa as part of the capital group, and we will continue to do so unless something changes.
Thank you very much for the presentation and for your answers to all the questions. Thank you very much for such a great turnout. And a word of gratitude for the Investor Relations department and the PR team. You are now very welcome to meet, and discuss the presentation, and we will see you next time when we meet to discuss the performance of.
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