Letter from the Chairwoman of the Supervisory Board
Dear Ladies and Gentlemen,
In 2013, we were consistent in creating the ORLEN Group's value. We operated in line with our strategy, whose objectives include not only maintaining an optimum liquidity position and cost control, diversifying sources of financing and reinforcing our core businesses, but also intensive growth in the power and upstream segments. Importantly, our capital expenditure is dependent on macroeconomic conditions.
Our strategy has proved effective. Last year, despite the unstable market situation and macroeconomic pressures, the Group's total sales volumes increased by 0.6m tonnes, to nearly 36m tonnes. The Group posted revenue in excess of PLN 113bn and generated LIFO-based EBITDA of PLN 3.2bn.
Our investments in the upstream segment have positioned us as a company of global reach. This was made possible by the acquisition of TriOil Resources, a Canadian production company with producing oil and gas assets in the most technologically advanced region of the world. The acquisition allowed us to access unique know-how, which we will further develop and adapt to the local unconventional hydrocarbon production conditions. The Company has also been consistently pursuing shale gas exploration projects in Poland, where we have drilled 10 exploration wells to date.
Our major power generation project, launched in 2013, is the CCGT unit in Włocławek. When complete, the new unit will co-generate electricity and heat for the ANWIL Group, PKN ORLEN, as well as third-party customers. The project is scheduled to be commissioned in late 2015.
Given the persistently unstable conditions on foreign markets, we focused on reinforcing the position of our Group companies, which is what motivated the purchase of 16.4% of shares in Česká Rafinérská by the Unipetrol Group. Increasing our equity interest in the company has significantly improved our ability to manage it effectively.
Another important development in 2013 was the successful issues of retail bonds, which were introduced to trading on the Catalyst market. Strong investor interest in our retail bond programme, finalised in 2014, is an endorsement of the Company as a solid and reliable partner and a trusted participant of the market.
In its pursuit of the strategic objectives, the Company relies on the corporate value system approved in 2012 and implemented across the Group last year. In an effort to create a coherent and transparent vision of our operations, we are guided by the following values: responsibility, growth, people, energy and reliability.
Last year has proved that our current strategy is an optimum one, as it gives the Company operational stability even amid adverse macroeconomic conditions. I am certain that the directions we have chosen to follow will contribute to creating long-term value for the ORLEN Group across all its segments.
Chairwoman of the Supervisory Board