Page 12 - EurOil Week 19 2021

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Orlen moves forward in

Lotos takeover

POLAND POLISH refining group PKN Orlen is inching to buy Poland’s state gas supplier PGNiG. The
closer towards completing its takeover of smaller takeovers will boost its revenues to PLN200bn
Orlen has been working peer Grupa Lotos, as part of a broader plan by ($53mn) and its core annual earnings to
to finish the acquisition Warsaw to create a national energy champion. PLN22bn. Orlen, PGNiG and Lotos currently
for several years now. Polish State Assets Minister Jacek Sasin have a combined market capitalisation of nearly
reported on May 12 that the state would increase PLN80bn ($21.4bn).
its shareholding in PKN Orlen to 50% as part of “We are implementing a plan to build a mul-
the transaction. ti-energy company that will be able to compete
“There will be a merger, a non-cash merger, much more effectively on the global market and
so it will be a cashless transaction resulting in respond to the challenges of energy transforma-
increasing the share of the state treasury in PKN tion,” PKN Orlen CEO Daniel Obajtek said in a
Orlen... up to 50%,” State Assets Minister Jacek statement. “Only a strong company with diver-
Sasin told a news conference. sified income will provide capital for ambitious
The deal is on track for closure this year, Orlen investments, including low and zero-emission
CEO Daniel Obajtek said. energy sources.”
Orlen has been working to finish the acquisi- Orlen’s net profit surged to PLN1.86bn in the
tion for several years now, but it has encountered first quarter, up from a net loss of PLN2.24bn
delays because of regulatory hurdles. The Euro- a year earlier. The company benefited from its
pean Commission finally cleared the merger in takeover of high-margin earning Polish power
July, but on condition that some assets were shed utility Energa last year. Orlen’s sales were up
including filling stations and a stake in the Lotos 11.3% year on year at PKN24.6bn.
refinery in Gdansk. Besides its acquisition plans, Orlen wants to
Warsaw is looking to establish a national shift its focus in the coming years to petrochem-
energy champion with the clout to compete icals and clean energies and away from its core oil
internationally. Last year, Orlen also agreed refining business. ™

P12 www. NEWSBASE .com Week 19 13•May•2021