WOOD Flash – PKN Orlen: 2030 strategy
PKN Orlen has outlined its strategy for the next decade, with a major focus on restructuring its business to reduce carbon emissions and to give it a more sustainable foundation. The strategy includes the impact of the expected acquisition of Lotos, but excludes PGNiG. The rate of capital expenditure is to increase substantially, even when accounting for the addition of the Energa and Grupa Lotos businesses. If management’s projections of returns are correct, this need not be a worry, however, as it expects the business to grow its EBITDA from PLN 9.0bn in 2019 to PLN 26bn in 2030E. We believe that the existing projects can increase the EBITDA to at least PLN 18bn, so the target is ambitious, but not impossible. The new dividend policy is to pay a minimum of PLN 3.5/share. At the current price, this is about a 6% yield.Polski Koncern Naftowy Orlen's activities are divided into three main business segments: the Refining Segment that comprises crude oil processing as well as wholesale and retail trade in refinery products. The Petrochemical Segment that encompasses production and sale of petrochemicals and chemicals. The Retail Segment that comprises of sales at petrol stations. Co.'s basic products include gasolines, diesel oils, light heating oil, Jet fuel, liquid gas, polyetylene, polypropylene, benzene, butadiene, acetone, phenol, glycols, toluen, ortoxylene.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
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