Our Strategy

Market trends driving ORLEN Group strategy

We are pursuing our long-term strategy to 2035, taking into account the global decarbonisation trend and increasingly stringent regulatory requirements. The strategy responds to one of the key challenges, namely the responsible energy transition, which requires gradually moving away from fossil fuels while ensuring the continued stability of energy supply. Central and Eastern Europe is experiencing dynamic growth, yet sustaining this momentum will require a careful balance between the robust demand for traditional energy sources and the accelerating decarbonisation efforts.

The region stands out with a relatively higher economic growth rate compared to Western Europe. Its economies continue to evolve, increasingly driven by human capital, attractive investment conditions, and a shift toward high-tech industrial sectors – factors that continue to attract foreign direct investment. As a result, energy demand is expected to rise, along with the need to reduce emissions from the energy sector. However, the pace of this transition will differ from that in Western Europe. Over the coming decade, fossil and conventional fuels will likely remain in high demand, while transport electrification and the phase-out of fossil-based energy generation are expected to progress at a slower rate. The lasting change in the directions of energy commodity supplies in Central Europe and reduced dependence on hydrocarbons from countries east of Poland form the foundation of the region’s new energy security architecture.

Reducing CO₂ emissions and aligning our operations with growing ESG expectations are essential for long-term competitiveness. Integrating carbon-reducing technologies, such as carbon capture and storage (CCS), expanding renewable energy capacity, and investing in zero-carbon fuels, has become a key element of our business model. Since 2025, the European Union’s approach to the energy transition has also been evolving, with greater emphasis placed on industrial competitiveness and energy security, fostering a more pragmatic transition model in Central Europe.

Against the backdrop of market and geopolitical instability, another major challenge is the need to secure stable supplies of raw materials and diversify their sources. We are working to increase the flexibility of our oil and gas supply portfolio. Long-term gas supply contracts, the development of LNG infrastructure and the integration of regional energy markets are gaining strategic importance. Ensuring energy security and mitigating the risk of supply disruptions are critical components of our long-term strategic outlook.

Strategic development directions

Our strategy to 2035 focuses on integrating ORLEN Group’s existing business segments and building an organisation that, over the next decade, will become more resilient to fluctuations in its business environment. We will be better positioned to effectively manage the entire value chain, from raw materials and production to the delivery of finished products to customers. Increased transparency of our operations will also enable more precise identification of areas for optimisation in response to evolving market requirements. This will drive down operating expenses, improve service quality, and enhance the overall competitiveness of the ORLEN Group. Integration of our business segments will not only strengthen our market position, but will also enhance our flexibility and the capacity to respond swiftly to market dynamics and emerging challenges.

Our strategy is anchored in a pragmatic transformation that addresses key regulatory and business challenges and opportunities, while also being tailored to the specific needs and characteristics of the region.

Energy is expected to become the Group’s fastest-growing segment, with a substantial regulatedbusiness component, an approximately 20% contribution to total EBITDA, and a complementary mix of renewable energy assets and CCGT plants. Growth of the Energy segment will also support the decarbonisation of our refining and petrochemical operations.

One result of this operational integration will be the Consumers & Products segment, through which end-users will benefit from lower-carbon energy sources, fuels, and services. The overarching goal of our strategy is to build a more sustainable organisation that can adapt to shifting market conditions.

The new ORLEN Group strategy will create an integrated, cohesive and digitally-enabled organisation in which each business line complements the others, enabling us to deliver products and services aligned with customer expectations. The transformation of our traditional operations will fuel expansion into new growth areas, and a diversified business model will be more resilient to market changes.

A cross-cutting objective of our strategy is to reduce CO₂ emissions through a number of measures, such as developing expertise in sustainable raw materials, hydrogen, biofuels, and small-scale nuclear generation (SMRs). Investments in projects within the innovative and sustainable product portfolio pillar will not only expand the Group’s low- and zero-carbon energy capacity, but will also supply sustainable raw materials for next-generation products and open up new business areas that complement ORLEN’s traditional operations.

Capital allocation strategy

We have established capital allocation criteria for our investment projects that include minimum return thresholds (hurdle rates) tailored to the specific characteristics of individual business lines and different project types, including their impact on carbon emissions. Initiatives supporting CO₂ emissions reduction may yield relatively lower returns than those increasing our carbon footprint.

Another factor differentiating the expected rate of return is the allocation of investments to our strategy pillars. Projects with high strategic potential, as well as optimisation and innovation projects or investments in our sustainable product portfolio, may carry a lower expected rate of return than investments in areas of lesser strategic importance, where the objective is to maximise value over a shorter time horizon.

Capital expenditure in 2025

In the Upstream & Supply segment, in 2025 work continued on the development of the Fenris and Ørn fields, as well as the Yggdrasil area in Norway.

In the Downstream segment, we incurred expenditure on the New Chemistry monomer units in Płock, a hydrocracking unit in Mažeikiai, a hydrocracked base oil unit in Gdańsk, rapeseed oil pressing plants in Kętrzyn, and HVO unit in Płock.

In the Energy segment, projects under way included offshore wind farms in the Baltic Sea, CCGT units in Ostrołęka and Grudziądz, and solar PV farms.