According to Reuters article published on November 29, 2022, Poland's biggest refiner PKN Orlen's (PKN.WA) third-quarter net profit jumped 336% year on year, boosted by the takeover of Grupa Lotos in July, it said on Tuesday.
Third-quarter net profit reached 12.68 billion zlotys ($2.82 billion) compared to 2.91 billion zlotys a year ago.
The takeover of smaller peer Grupa Lotos increased refining and production volumes and boosted earnings by 5.9 billion zlotys, PKN Orlen said.
The takeover was part of a wider plan by Poland's ruling Law and Justice (PiS) party to tighten control over the economy and create 'national champions'.
"Q3 results show the first positive effects of building a strong multi-utility concern," chief executive Daniel Obajtek wrote on Twitter.
The company's shares were up 3.6% at 64.88 zlotys by 0819 GMT
"The tone of the results is positive, but in line with expectations," Trigon analyst Michal Kozak said in a note, adding that he expected a bigger contribution from Lotos.
On a quarterly basis, operating profit for the oil and gas production segment rose 150% to 842 million zlotys, also boosted by the consolidation of Lotos' assets.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) for the company's retail operations rose 20% to 856 million zlotys driven by a seasonal increase in sales. However, profit from retail sales was 8% lower than in the year earlier period as margins were squeezed, Orlen said.
The company will present its new strategy in January or February, director Robert Sleszynski said.
($1 = 4.5036 zlotys)
