Poland’s leading fuel and energy company, Orlen, is making headlines with its recent announcement of a proposed record dividend for the financial year 2024. On February 27, 2025, the company's management recommended an eye-catching dividend of 6 zł (approximately 1.35 USD) per share, marking the highest payout the company has offered to its shareholders to date.
During the presentation, Orlen's management reported consolidated revenues totaling 296.95 billion zł for the year 2024, reflecting significant changes from the previous year when revenues reached 372.77 billion zł. Despite this drop, the net profit decreased considerably from 20.97 billion zł to 7.95 billion zł, showcasing the company’s resilience amid fluctuated market conditions.
The recommended dividend is composed of two parts: the guaranteed dividend of 4.5 zł per share and the additional bonus of 1.5 zł per share, which is contingent on the company’s financial performance. Ireneusz Fąfara, the CEO of Orlen, emphasized the company's strong cash flow generation as the driving force behind this record dividend proposal: "We generated significant cash flow, so we can offer shareholders record-high dividends," he commented during the press briefing.
This recommendation reflects Orlen's progressive dividend policy, aimed at ensuring consistent shareholder returns. "The board has recommended this record dividend as part of our strategy to regularly share financial results with our shareholders moving forward, especially through 2035," the management stated. The board's decision is significant not only for Orlen’s investors but also for its overall market position.
Orlen's share price has seen positive reactions following the announcement, with gains reported at over 2% during the trading session. Investors reacted favorably to the strong dividend yield now reflecting around 9.5%. The share, trading near 63.40 zł, offers investor confidence, reaffirming their trust after Orlen's solid performance throughout the last quarter.
Looking back at the operational results, Orlen achieved significant milestones, particularly notable during the fourth quarter of 2024 with net profit surging to 4.6 billion zł, which was five times higher than the profit recorded for the same period the previous year. This success can largely be attributed to favorable performance from segments like extraction and gas, which generated substantial EBITDA contributions.
Fąfara continued to share highlights of Orlen’s strategic direction, stating, "This was a very good quarter for Orlen. We achieved excellent operational results and successfully completed our strategic plans, which have been well received by the market and contributed to the double-digit growth of our share prices. We've generated substantial cash, allowing us to propose record dividends." This forward-looking perspective is indicative of Orlen’s commitment to maintaining strong financial health and increasing shareholder value.
Despite the impressive performance, Orlen's management noted challenges they faced during 2024, particularly within petrochemical segments, which struggled under difficult market conditions. Nonetheless, the company continues to adapt and optimize its operations, emphasizing resilience and innovation throughout its business model.
Concluding, Orlen's recommendation for the record dividend reflects the company's commitment to its shareholders and its confidence moving forward. The upcoming shareholders' meeting will have the final say on the dividend distribution; anticipation is high as investors await the formal ratification of this unprecedented payout.