Finance
Poland's Orlen Q2 profit jumps as upstream gains offset write-downs
Published by Global Banking & Finance Review®
Posted on August 21, 2025
2 min readLast updated: January 22, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on August 21, 2025
2 min readLast updated: January 22, 2026
Orlen's Q2 profit surged 74% driven by upstream gains, overcoming lower refining margins and write-downs.
GDANSK (Reuters) -Polish energy group Orlen on Thursday reported a near 74% rise in its second-quarter profit, with a strong upstream performance helping to offset the impact of lower refining margins and asset write-downs. The company's core profit adjusted for changes in value of its oil inventories, or EBITDA LIFO, reached 7.72 billion zlotys ($2.12 billion), a result achieved despite booking 1.49 billion zlotys in write-downs, mainly in the upstream and downstream segments.
The oil refiner's upstream business reversed a massive loss from the previous year, as its results were no longer weighed down by a one-off 7.7 billion zloty write-down following a government windfall tax levied to fund energy price freezes.
Orlen's energy business saw its core profit rise by 368 million zlotys year-on-year, which the company attributed to increased gas and electricity distribution.
Its consumers & products division reported a 363 million zloty year-on-year increase, driven by higher sales of gas and electricity.
However, profits at its downstream business fell by 561 million zlotys year-on-year, hit by a less favourable macro environment. The group's second quarter refining margin declined around 10% from the year before to $11.3 per barrel.
The results were also impacted by a 217 million zloty provision the company booked in relation to an arbitration ruling that allows Russia's Gazprom to retroactively raise gas prices.
The company said in a presentation it expected its full-year LIFO-based EBITDA to be higher in 2025 than in 2024.
($1 = 3.6483 zlotys)
(Reporting by Rafal Nowak and Marek Strzelecki;Editing by Christian Schmollinger)
Orlen reported a nearly 74% rise in its second-quarter profit.
The upstream business reversed a massive loss from the previous year, significantly improving its financial results.
The core profit increase was attributed to higher gas and electricity distribution, amounting to a rise of 368 million zlotys year-on-year.
Orlen booked a 217 million zloty provision related to an arbitration ruling that allows Gazprom to retroactively raise gas prices.
Orlen expects its full-year LIFO-based EBITDA to be higher in 2025 than in 2024.
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