'This is a pivotal moment. We took on the challenge to merge companies of strategic import to energy security and successfully brought this difficult and challenging process to completion. We are already operating as one combined ORLEN Group. Together we are building a future founded on the development of those business areas which offer the greatest growth potential and ensure secure and stable energy supply for Poles. Concurrently, we are embarking on a process to integrate the entire Group, as our ambition is to transform the entire ORLEN into a modern business that will propel the Polish economy forward in difficult times. With approximately PLN 400 billion earned in revenue annually, the company also becomes more attractive to its trading partners, including oil and gas producers, which we are already seeing and capitalising on in our current operations,' said Daniel Obajtek, President of the PKN ORLEN Management Board.

'PGNiG’s potential and assets significantly bolster the ORLEN Group, which will be crucial to the development of the energy industry. Only a strong player with diversified business operations can effectively tackle the challenges posed by the energy transition, and the key to success is the implementation of investments that will drive Poland’s economic growth and boost our energy security,' said Iwona Waksmundzka-Olejniczak, President of the PGNiG S.A. Management Board. 'The purpose of the companies’ integration is to achieve synergies and, above all, to strengthen their existing business lines. PGNiG employees will be fully involved in building the value of the new group. They will harness their experience and knowledge to support the development of competence centres, particularly in hydrocarbon exploration and production, gas distribution and storage, as well as heat and electricity generation,' Ms Waksmundzka-Olejniczak added.

The combined businesses will make optimum use of the potential of the existing business lines, as well as strengthen their strategic growth projects. ORLEN will be strongly committed to the development of low- and zero-emission energy sources, becoming one of the leading producers of green energy in Central Europe. Through these efforts, the Group will increase its independence from suppliers of energy commodities, which is particularly important given the current market conditions and international context.

The merger will enable the ORLEN Group to achieve the goals more smoothly it set in 2020, when it was embarking on a new growth strategy. A particularly important aspect is to increase the chances of achieving carbon neutrality by 2050 – an ambition that drives strategic growth directions. The finalisation of the merger process will help step up the ongoing investment projects, such as the construction of offshore wind farms and PV solar farms, development of hydrogen projects, including green hydrogen, or construction of small modular nuclear reactors, reducing emissions from existing CHP plants. These plans will be implemented relying in the competencies and resources of each ORLEN Group company.

The business scale and stability of the new, merged ORLEN Group will now strengthen its resilience to the changing market landscape. Business diversification will help stabilise the Group’s cash flows, benefiting the shareholders and the customers of the merged companies alike. The stability is also enhanced by the ability to secure financing in international markets. The scale of the Group’s operations also bolsters its attractiveness vis-a-vis trading partners, frequently the leading players in their industries. This translates into a better bargaining position in securing oil and gas supplies to Poland, among other benefits.

Maximising benefits of the merger calls for a comprehensive approach – an integrated transformation programme for the ORLEN Group. The integration of PKN ORLEN and PGNiG, the leader of Poland’s oil and gas sector, goes beyond the standard implementation of simple integration projects. It presents the ORLEN Group with new opportunities as regards the use of assets and transformation of business segments. This is where the exploration and production segment comes into prominence. The consolidation of the assets of ORLEN, LOTOS and PGNiG, with the last company leading the process, will enhance operational efficiency, expand investment capacity, and support the focus on natural gas and crude oil deposits in Poland and Europe, as well as in other promising regions.

The establishment of a single multi-utility group will also allow all of the merging companies to combine their retail operations and develop a comprehensive product offering for millions of households in Poland, including the supply of all energy carriers at stable and competitive prices. The key objective is to ramp up the scale, quality and efficiency of sales and optimise customer service costs.

The merger of PKN ORLEN with PGNiG has been conducted in dialogue with the social partners right from the beginning, considering the vital role they play in building the new ORLEN Group. PGNiG employees will also gain new opportunities for professional development in a business that enjoys a strong international presence, and their experience and knowledge will be useful in supporting the development of competence centres. Furthermore, under an agreement signed in October 2022 between PKN ORLEN, PGNiG and the trade unions of both companies, PGNiG employees were granted several guarantees, including guaranteed employment for 48 months and a 24-month period in which their existing work and pay conditions, particularly their existing place of work, would remain unchanged.

As a result of the merger between PKN ORLEN and PGNiG (plus the already merged Grupa LOTOS), the Polish State Treasury’s equity interest in the merged organisation will increase to nearly 50%, meaning that the state’s control over it will be further reinforced. The equity interest will be much higher than in PKN ORLEN alone prior to the merger with Grupa LOTOS and PGNiG, when the State Treasury’s shareholding was approximately 27.5%. PKN ORLEN thus remains a public company listed on the Warsaw Stock Exchange and evaluated by private investors, but fully secured and supervised by the State Treasury.