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PKN Orlen Q3 results boosted by Belgrade on November 23, discussing or death situation such as this war is surely
“Expressing our position clearly in a life
cooperation in the field of energy and the
Lotos takeover deepening of their partnership. justified. Therefore, these discussions are
Amid the energy crisis, Serbia plans to
ongoing,” Reinsalu said.
Warsaw-listed fuels and energy group PKN secure at least 30-40% of gas supplies from
Orlen ballooned 335.7% y/y to PLN12.68bn alternative suppliers to Russia, including from Reuters wrote that Poland, Estonia and
(€2.71bn) in the third quarter, the results Azerbaijan. Latvia remain opposed to the proposed cap,
getting a boost thanks to the merger with Seven bilateral documents were signed which they find too high in a situation where
refiner Lotos completed last year in August, during the meeting including a memorandum the cost price of Russian oil is around $20.
PKN Orlen said in a market filing on of understanding (MoU) to establish the This would leave Moscow with plenty of
November 29. Strategic Partnership Council between Serbia oil income. Politico and Reuters report that
PKN Orlen’s other financial indicators and Azerbaijan. Poland asked for the ceiling to be set at $30
increased significantly as well as a result of the “Azerbaijan is a reliable partner of Serbia, per barrel.
Lotos deal. Sales revenues grew 100.3% y/y to and the two countries persistently protect Lithuania is not either satisfied with the
PLN72.97bn while Ebitda expanded 229.8% territorial integrity and support each other in European Commission’s proposed price cap
y/y to PLN16.97bn. international organizations,” Vucic was cited on wholesale natural gas, President Gitanas
PKN Orlen’s merger with Lotos and the by broadcaster RTS. Nauseda said on November 24.
subsequent merger with oil and gas group Aliyev said that Serbia and Azerbaijan “The proposed solution is unsatisfactory
PGNiG completed a process put in motion are strategic partners that cooperate in many because it would not help to protect ourselves
by the Law and Justice (PiS) government to areas, and indicated that the cooperation even against the peak we had in the past,”
create an energy company able to become a documents represent the legal basis for he said at a joint news conference with
major international player. further development of relations. Romanian President Klaus Iohannis in Vilnius
PKN Orlen said earlier this year that it “We talked about energy and we on November 24.
expected its turnover to reach PLN400bn will continue those talks about natural U.S. Secretary of the Treasury Janet Yellen
following the mergers, four times the annual gas, electricity and indeed there are has proposed the cap at $60, Politico wrote on
revenue of Hungary’s MOL. new possibilities and opportunities for November 24.
“We invest and develop all [business] cooperation,” the Azerbaijani president said. The publication said that most EU member
areas, which provides us with stable income. He pointed out that Azerbaijan has rich gas states agree to the price ceiling proposed by
Q3 results show the first positive effects of resources and plays an important role in the the G7.
building a strong multi-utility company,” PKN energy security of many countries. The price of Brent crude is currently
Orlen’s CEO Daniel Obajtek said on Twitter. “Our role will grow, and we will cooperate hovering around the $85 mark, ERR.ee said.
PKN Orlen’s stock rose 3.51% to PLN64.8 with friendly countries in the first place, not
on the Warsaw Stock Exchange on November only when it comes to energy, but in all areas,”
29 after the publication of the results. Aliyev said. Slovak legislators still divided
Vucic announced that in the next 20 days,
he will pay a working visit to Baku with a over implementation of windfall
Orlen Lithuania posts delegation of several ministers to continue tax on Russian oil
talks on further cooperation.
€26.8mn in Q3 profit, Deputies at the Slovak parliament have still
revenue up 32% y/y Estonia threatens to use veto in not reached an agreement on implementating
taxation on the Russian oil imported to
Orlen Lietuva (Orlen Lithuania), the Russian oil price cap dispute Slovakia. Together with Czechia and Hungary,
Lithuanian branch of Poland’s oil group Orlen, Slovakia has an exemption from the EU
posted €26.8mn in net profit for the third Estonia is after an agreement in the EU for embargo on the Russian oil imports which
quarter of this year, BNS, a Baltic newswire, a lower price cap on Russian oil than what kicks in at the beginning of December.
reported. has been proposed by the G7. Minister of The cabinet led by premier Eduard Heger
In July-September, Orlen Lietuva earned Foreign Affairs Urmas Reinsalu hinted that (OLaNO) have been discussing since May
$2.242bn (€2.16bn) in revenue. Estonia could resort to its veto right, ERR. how to impose a windfall tax on Russian oil,
A favorable macroeconomic situation was ee, an Estonian news website, reported on following a proposal by Finance Minister Igor
behind the company’s better third-quarter November 24. Matovic (OLaNO). OLaNO’s then coalition
financial results, the company said in a Reuters reported on November 24 that partner SaS, a libertarian party led by Richard
statement. European Union governments failed to agree Sulik, had opposed the tax but it left the
Ebitda halved to $119.6mn (around on whether to support the G7’s $65-70 per coalition in September, depriving Heger’s
€115.4mn) during the period. barrel price cap proposal. cabinet of majority backing in the parliament.
Orlen Lietuva ended the second quarter “Estonia finds that the price horizon’s OLaNO and SaS disagreement still
in the red as it incurred a loss of $209mn ambition is too low, considering that the prevents the implementation of the tax today,
(€204.4mn based on the exchange rate of EU has also failed to agree on a ninth public broadcaster RTVS reports. SaS argues
August 5). sanctions package. The cap seems too high,” revenue from the tax needs to redistributed
Minister of Foreign Affairs Urmas Reinsalu to people and it has also submitted several
(Isamaa party) said at the government press amendments to the legislation.
Serbia and Azerbaijan deepen conference on November 24. on fuel to 8%. Another lowers consumer
“One of the amendments lowers the VAT
“It is a critical moment where all member
co-operationr states have an equal vote,” the foreign minister tax on fuels as well,” SaS chairman of the
Parliamentary Financial Committee Marian
added, pointing to EU foreign policy rules on
Serbian President Aleksandar Vucic met consensual decision-making or countries’ de Viskupic was quoted as saying. It is unclear
President of Azerbaijan Ilham Aliyev in facto veto rights. whether there will be enough backing in the

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