This is not a question of my ambitions, but the necessity to compete. BP and other concerns have integrated gas, refining, good mining, processing and energy assets. They will actually implement the Green Deal with money from the "dirty order". We also need to balance that. We must create a strong concern to carry out the energy transformation so that it is beneficial for us and the Polish economy. And, of course, earn money in the process.
It will be controllable, I assure you. It is one matter to buy something, and another to carry out the entire process of restructuring optimization effectively and combine subsidiaries. For this, there are suitable advisors so that management is quick and precise.
Will the new Orlen be Cheebol?
No. We are building a multi-energy concern, and this is a significant difference. This is how the largest global concerns from the fuel and energy industry built their position. And no one was talking about cheebols in this case.
Daniel Obajtek, CEO of PKN Orlen:
Creation of a multi-energy company requires determination
Daniel Obajtek has been the CEO of the largest concern in Poland and in the region for over two and a half years. During this time, he outlined a very ambitious vision of further development of PKN Orlen Group and, more importantly, he has been consistently and determinedly implementing it. It primarily involves creation of a multi-energy concern, whose scale and scope of operations would allow it to compete with the leading European players.
Obajtek had started implementation of this objective three weeks after becoming the CEO of Orlen. At the end of February 2018, he signed a letter of intent with the State Treasury concerning the purchase of the majority stake in the fuel giant Lotos. Although the transaction has not been finalised to date, and most probably it will not take place earlier than in a year and a half, in just a few months he managed to take over the fourth largest energy group in Poland, i.e. Energa.
In mid-July, Obajtek signed another letter of intent with the State Treasury, this time concerning the acquisition of PGNiG. The transaction is to be finalised together with the acquisition of Lotos. Once the combination occurs, the new Orlen will be able to generate approximately PLN 200 billion in revenue and an EBITDA of PLN 20 billion per year. Such a result would be generated as a result of refining and petrochemical operations (40%), extraction (20%), retail sales of fuels, gas and energy, and regulated distribution (15%), and power generation (10%). The combined entity would also have significant capital and much better investment opportunities.
Already in June 2018, Obajtek announced the launch of Orlen Group's largest petrochemical project in its history. At the time, he presented it to be a strategic decision for both the company and the Polish economy. As a result of it, Poland, from an importer, would become an exporter of petrochemicals. Completion of the project worth approximately PLN 8.3 billion is planned for 2023. It is expected to pay for itself in five or six years. The CEO of Orlen is also strongly committed to projects related to so-called new mobility, hydrogen technologies, recycling, as well as research, development and digitisation.
The actions taken by Obajtek have the solid political support of the current government. They are expressed not only by Prime Minister Mateusz Morawiecki or Deputy Prime Minister and Minister of State Assets Jacek Sasin, but also by the President of the Law and Justice (PiS) party, Jarosław Kaczyński. Obajtek is his favourite CEO. They often meet and talk about Poland and the economy. Consequently, when Obajtek mentioned that Orlen would not invest in a nuclear power plant, the ministerial plans in this respect had to change accordingly.
On the market, opinions on the CEO of Orlen vary. Apart from praise, or even admiration, there is also criticism. Members of the opposition and Pomeranian local government officials disapprove of his activity the most. The latter are not reassured by Obajtek's declarations that after the acquisition of Energa and Lotos, taxes from their operations will continue to flow into the local government and employment will remain unchanged. Stock market analysts and investors fear that the acquisitions will not bring the planned effects, which will lead to a decrease in the value of shares.
Before taking up the post of the CEO of Orlen on 6 February 2018, Obajtek managed Energa Group for a year. During this time, the company's market value grew by 38%, which was the best performance among Polish energy companies and which he considers one of his most important successes. Obajtek was also president of the Agency for Restructuring and Modernisation of Agriculture, where he managed 11,000 employees and a budget of PLN 27 billion. Among other things, he streamlined the Agency’s processes related to the disbursement of billions from the EU and national funds. Finally, from 2006 to 2015, he was the head of Pcim gmina in Lesser Poland, implementing many development and infrastructure initiatives.
