PKN Orlen (Polish: Polski Koncern Naftowy Orlen) (WSE: PKN) is a Polish oil refiner and petrol retailer. The corporation is a significant European publicly traded firm with major operations in Poland, Czech Republic, Slovakia, Germany, and the Baltic States as well as an operation in Canada.
|Traded as||WSE: PKN|
|Industry||Oil and Gas|
|Founded||Płock, Poland |
September 7th, 1999 as Polski Koncern Naftowy
|Daniel Obajtek (Executive Chairman)|
|Products||Fuel, crude oil and other natural gas|
|Brands||Orlen, Star, Unipetrol, Benzina, Orlen Lietuva|
|Revenue|| PLN 111 billion |
$29 billion (2019)
|PLN 8.657 billion (2019)|
|PLN 7.173 billion (2017)|
|Total assets||PLN 60.664 billion (2017)|
|Total equity||PLN 535 million (2017)|
Number of employees
The firm was created through the merger of two state-run petrochemical firms: C.P.N. (Centrala Produktów Naftowych), Communist Poland's petroleum retail monopoly and Petrochemia Płock, the state firm in charge of the oil refineries in Płock, the largest complex of its kind in Poland. After the merger of CPN and Petrochemia Płock in 1999, the company was renamed as Polski Koncern Naftowy (PKN), with Orlen added several months later as the consortium's brand name. The new name is derived from Orl- for "orzeł" (Polish: eagle) and its adjective "orli", and -en for "energia" (Polish: energy).
Privatization and OrlengateEdit
In 1999, both firms were partially privatized and merged to create a retail and refining company under the name PKN Orlen.
Orlengate is the biggest corruption scandal in the modern political history of Poland. The scandal started with the arrest on 7 February 2002 by the UOP (Office for State Protection) of Andrzej Modrzejewski, the CEO of PKN Orlen. He was accused of insider trading and disclosure of confidential information. Zbigniew Wrobel directly succeeded as CEO and proposed in December 2002 $160 million for the purchase of 295 German gas stations from the British BP PLC. It was the first step in Wrobel´s strategy of expanding west. At this time PKN Orlen was Poland´s largest company, with sales of $7.2 billion.
International Expansions (2003-2014)Edit
After losses in 2000 and 2001 the fund returned 25% in 2002. Until July 2003 it grew by nearly one-third since March and in total the fund was up by about 60% since the start in 1994.
In 2003 PKN Orlen had the chance to acquire 500 filling stations in Northern Germany from BP under premise of an anti-competition rule when BP took over Aral. As of 2007 PKN Orlen has 581 filling stations in Germany (484 under the Star brand, 58 under the Orlen brand and 29 under a supermarket brand).
In January 2003 PKN Orlen and MOL signed a Memorandum of Understanding whereby they agreed intention to initiate co-operation in the Central and Eastern European oil sector. They hoped that the collaboration would allow them both to benefit from the synergies and to compete more effectively in the global competition. In July 2003 the Croatian INA refinery was sold for $505 million to PKN Orlen´s competitor, the Hungarian oil company MOL. This strengthen MOL´s position in the battle for control of Central Europeans and Balkan fuel markets.
Furthermore PKN Orlen was involved in merger talks with MOL Group in 2005. If merged, the two firms would have created a regional giant, and controlled much of Central Europe's oil industry. However, the planned merger failed due to high politicization. Following the dropped merger plans, PKN Orlen bought a majority stake in Czech Unipetrol. During May 2006, the company announced its largest investment ever when it took over a majority share of 84.3% of Lithuania's Mažeikių Nafta, the largest company in the Baltic States. It was partly bought from Yukos (53.7%) and partly from the Lithuanian government (30.6%) in December. Earlier on October 12 a fire damaged the Mažeikių refinery, which caused a loss about $75 million. With the completion of the takeover, PKN Orlen became Central Europe's largest company.
In 2007 the unit of Polish oil group PKN Orlen PKNA.WA and Dwory Chemicals bought a synthetic rubber company Kaucuk from Czech oil group Unipetrol UNPEsp.PR. The sale was part of a drive by Unipetrol to divest non-core assets and to focus on petrochemical, oil refinery and fuel retailing business.
In 2010 PKN Orlen had a reported revenue of $28.8 billion. Next year it was the largest fuel retailer in Poland with over 2000 locations. The company ran the most advanced and the second largest complex for terephthalic acid production in Europe.
In 2013 PKN Orlen and Klaipedos Nafta oil terminal negotiated the co-operation on a new pipeline supported by the Lithuanian government. In order to establish the company in Canada and to become an oil producer PKN Orlen bought the oil and gas company TriOil Resources Ltd for $169 million in September 2013. After its first foreign expansion the company acquired Birchill Exploration Ltd due to double its production in May 2014.
2015 - present dayEdit
In 2019 PKN Orlen sponsored Wiliams Racing and driver Robert Kubica in Formula One with 10 million Euro. After Kubica's move to Alfa Romeo Racing in 2020, the Polish petrol retailer became the co-title sponsor of the team.
Orlen has been implementing a development strategy since 2018, which involves transforming the company into a multi-energy group. In April 2020, PKN Orlen acquired 80% of Energa SA shares, and on July 14, 2020 announced that it obtained permission the European Commission's for the takeover of Lotos. The next goal is to take over the gas company PGNiG.
Brands and subsidiaries of Grupa Orlen (PKN Orlen Group)Edit
Brands of PKN OrlenEdit
- Orlen (Polish market petrol station brand)
- Star (German market petrol station brand)
- Unipetrol (Czech national petrol firm)
- Orlen Lietuva (Lithuanian market petrol station brand)
- Benzina (Czech and Slovak market petrol station brand)
Orlen Group StructureEdit
|Anwil S.A.||production of PVC, nitrogenous fertilisers & other chemicals|
|Orlen Ochrona||security services|
|Orlen Upstream||crude exploration|
|Sigma Bis S.A.||marketing services|
|Unipetrol a.s.||leading Czech refining & petrochemical group|
|Orlen Capital AB||eurobond issue|
|Orlen Centrum Usług Korporacyjnych||book keeping & accounting services|
|Orlen Holding Malta Limited||shareholding in other entities|
|Orlen Insurance Ltd||Orlen Group's assets insurance|
|Orlen Usługi finansowe||financial services|
|AB Orlen Baltics Retail||liquid fuel trade & marketing|
|Orlen Deutschland GmbH||retail sales of fuel across Germany|
|AB Orlen Lietuva||crude processing, logistics and marketing of petroleum products|
|Baltic Power||production, distribution & trading of electric energy|
|Basell Orlen Polyolefins||production, distribution & marketing of poliethylene and polipropylene|
|Orlen Południe S.A.||crude processing, production & marketing of fuels|
|Orlen Serwis S.A.||maintenance services|
|Retail Sales Division|
|Orlen Budonaft||construction and fuel stations service|
|Orlen Centrum Serwisowe||retail outlets service|
|Orlen Laboratorium S.A.||laboratory services|
|Orlen Projekt S.A.||civil engineering & process design services|
|Wholesale and International Trade Division|
|IKS Solino S.A.||underground strorage of crude & fuels; salt production & marketing|
|Kopalnia Soli Lubień||underground strorage of crude & fuels; salt production & marketing|
|Orlen Asfalt||production & marketing of bitumen products|
|Orlen Aviation Sp. z o.o.||liquid fuels trade|
|Orlen KolTrans S.A.||rail shipment & maintenance of the rail stock|
|Orlen Oil||production & marketing of lub oils and lubricants|
|Orlen Paliwa Sp. z o.o.||liquid fuels (petrol and diesel fuel) and Ekoterm Plus light heating oil|
|SHIP - Service SA||supplies of marine fuels, sea & land cargo shipment|
|Orlen Administracja||office, administrative & catering services|
|Orlen Eko||waste disposal, HSE|
|PPPT S.A.||research & development of state-of-the-art technologies|
- "Dane finansowe PKN ORLEN". www.orlen.pl.
- "Orlen w liczbach". www.orlen.pl.
- Poland by Fortune GLobal 500
- "Finance scandal rocks Poland". 8 February 2002. Retrieved 9 August 2019.
- "Zbigniew Wrobel". www.bloomberg.com. Retrieved 9 August 2019.
- "World of Investing : For risk-takers, look at Poland". The New York Times. 26 July 2003. ISSN 0362-4331. Retrieved 15 August 2019.
- Greenroom. "MOL and PKN ORLEN sign memorandum of understanding - MOL Magyarország". mol.hu. Retrieved 13 August 2019.
- Green (NYT), Peter S. (18 July 2003). "World Business Briefing | Europe: Croatia: Refiner Sold". The New York Times. ISSN 0362-4331. Retrieved 13 August 2019.
- "Mazeikiu Nafta - The biggest transaction in the history - PKN ORLEN". www.orlen.pl. Retrieved 3 July 2019.
- Kramer, Andrew E. (15 December 2006). "World Business Briefing | Europe: Poland: Oil Concern Buys a Refinery". The New York Times. ISSN 0362-4331. Retrieved 28 August 2019.
- Kramer, Andrew (28 October 2006). "Lithuanians are giben a taste of how Russia plays the Oil Game". The New York Times. Retrieved 11 September 2019.
- Bohlen, Celestine (3 July 2007). "Letter from Lithuania: Baltic state seeks freedom from Russia's energy 'friendship'". The New York Times. ISSN 0362-4331. Retrieved 8 August 2019.
- "Poland's PKN Orlen to buy Czech rubber firm Kaucuk". Reuters. 29 January 2007. Retrieved 5 September 2019.
- Sobczyk, Marcin (10 February 2011). "Polish Oil Firm Sets Central Europe's Revenue Record". WSJ. Retrieved 24 July 2019.
- "Launch of Europe's most advanced PX/PTA complex - PKN ORLEN". www.orlen.pl. Retrieved 19 December 2018.
- "Lithuania Seeks Pipeline Memo Between Orlen and Klaipedos Nafta". Bloomberg. 4 September 2013. Retrieved 3 July 2019.
- "PKN Orlen of Poland Buys Birchill to Double Canadian Oil Output". www.bloomberg.com. 8 May 2014. Retrieved 8 August 2019.
- Media, dziennik.pl (26 November 2018). "Inwestycja w Kubicę się zwróci? "Ta umowa to zakład. Orlen wygra, jeśli Kubica zacznie wygrywać" - dziennik.pl". sport.dziennik.pl (in Polish). Retrieved 23 July 2020.
- "The eagle soars as PKN ORLEN joins Alfa Romeo Racing as Official Co-Title Sponsor". Sauber Group. Retrieved 1 January 2020.
- "Orlen Group opens its first petrol station in Slovakia". Retrieved 14 September 2019.
- "PKN Orlen to install fast-chargers at 150 service stations in Poland". www.petrolplaza.com. Retrieved 18 December 2018.
- "Jakub Kosmowski is the new marketing director of Unipetrol". www.petrolplaza.com. Retrieved 18 December 2018.
- "Poland: Orlen launches two new, quality fuels". www.petrolplaza.com. Retrieved 19 December 2018.
- Shah, Shakhil (29 August 2018). "PKN Orlen set to take full control of Unipetrol". Emerging Europe. Retrieved 18 December 2018.
- "ORLEN Group Structure - PKN ORLEN". www.orlen.pl. Retrieved 2 January 2020.
|Wikimedia Commons has media related to PKN Orlen.|
- Official website (in Polish and English)