Finance
Energy group Orlen's refining gains offset impairment hit, lifting shares
Published by Global Banking & Finance Review®
Posted on February 19, 2026
2 min readLast updated: February 19, 2026
Tags:renewable energy
Quick Summary
Orlen missed Q4 profit forecasts as weaker oil and gas prices and impairments offset strong refining margins. The group plans PLN 36.3bn capex for 2026, with Baltic Power and a Grudziadz gas plant slated for completion.
GDANSK, Poland, Feb 19 (Reuters) - Polish energy group Orlen reported higher-than-expected adjusted core earnings on Thursday, helped by a stronger downstream result that overshadowed a net profit miss caused by asset impairments and lower oil and gas prices.
As of 0849 GMT, the shares were up 2.2%, boosting Poland's blue-chip index WIG20, which rose 0.5%.
"Overall 4Q25 was a good period for the Polish energy giant," said Tamas Pletser, an analyst at Erste Group, highlighting the "very strong contribution of refining" in a supportive margin environment.
Orlen's model refining margin spiked in the fourth quarter as sanctions and Ukrainian drone attacks on Russian infrastructure curbed diesel exports.
This downstream boost cushioned a broader commodity slump, with Brent crude falling nearly 15% and gas prices retreating from year-ago highs.
The state-controlled group's earnings before interest, taxes, depreciation and amortisation adjusted for the value of inventories and impairments, or EBITDA LIFO, declined 15% to 12.15 billion zlotys ($3.40 billion) in the quarter, but beat analysts' consensus of 11.4 billion zlotys.
However, Orlen's quarterly net profit of 3.13 billion zlotys fell short of the 4.8 billion zlotys expected by analysts it had polled ahead of the result publication.
The bottom line was weighed down by net impairment losses of 3.34 billion zlotys on non-current assets, the fourth-quarter report showed.
This included a 2.2 billion zloty impairment in the downstream segment, which includes refining and petrochemical business and "New Chemistry", a scaled-down version of Orlen's Olefins petrochemical investment designed to cut costs.
Orlen said it planned capital spending of 36.3 billion zlotys for 2026, up from 32.6 billion zlotys last year.
Key projects set to be completed this year include Poland's first offshore wind farm on the Baltic Sea and a gas-fired power plant in the city of Grudziadz in northern Poland.
($1 = 3.5729 zlotys)
(Reporting by Rafal Nowak and Marek Strzelecki;Additional reporting by Adrianna Ebert and Anna Jaworska-Guidotti;Editing by Milla Nissi-Prussak)
Key Takeaways
- •Net profit was 3.13 billion zlotys in Q4, below a 4.8 billion zloty consensus.
- •Lower oil and gas prices and a 2.2 billion zloty impairment weighed on results.
- •Refining margins spiked on supply disruptions but may prove temporary as markets adjust.
- •EBITDA LIFO rose 15% to 12.15 billion zlotys in the quarter.
- •Capex planned at 36.3 billion zlotys for 2026, including Baltic Power and Grudziadz projects.
Frequently Asked Questions about Energy group Orlen's refining gains offset impairment hit, lifting shares
1What is the main topic?
Orlen’s fourth-quarter results missed analysts’ profit expectations due to lower oil and gas prices and asset impairments, despite a temporary boost from stronger refining margins.
2Why did Orlen miss profit expectations?
Cheaper crude and gas reduced revenues, and a 2.2 billion zloty impairment further weighed on net income, offsetting gains from higher refining margins.
3What was Orlen’s Q4 EBITDA LIFO?
EBITDA LIFO rose 15% to 12.15 billion zlotys, reflecting resilient core operations even as headline profit fell short.
4What projects are slated for 2026?
Orlen plans PLN 36.3bn capex for 2026, targeting completion of the Baltic Power offshore wind farm and a gas-fired power plant in Grudziadz.
