GDANSK (Reuters) - Polish energy group Orlen on Thursday reported a 73.8% rise in fourth-quarter earnings before interest, taxes, depreciation and amortization (EBITDA) to 11.48 billion zlotys,
Orlen Reports Nearly 74% Increase in Quarterly Core Operating Profit
GDANSK (Reuters) - Polish energy group Orlen reported on Thursday a 73.8% surge in fourth-quarter core operating profit, slightly beating analysts' estimates driven by strong performance in its oil and gas production business.
The company generated earnings before interest, taxes, depreciation and amortization of 11.48 billion zlotys ($2.9 billion), it said in a statement, compared with analysts' forecasts of 11.11 billion.
It made net profit of 4.66 billion zlotys, missing a 5.04 billion estimate.
The company's shares rose 4% by 0900 GMT as investors cheered the core earnings result and Orlen said it would recommend a dividend of 6 zlotys per share for 2024, up from the 4.15 paid for 2023.
The dividend amount consists of a guaranteed progressive dividend of 4.50 zlotys per share and an additional premium of 1.50 zlotys per share, which depends on the company's financial results and situation.
"We achieved excellent operating results. We completed work on a strategy that was very well received by the market," CEO Ireneusz Fafara said in a statement.
"We generated a large amount of cash, so we can offer shareholders a record dividend."
Total net profit for 2024, however, was 7.98 billion zlotys, more than halving from 20.92 billion zlotys in 2023 which benefited from record energy prices.
Fafara later said at a press conference that U.S. exporter Venture Global - which is facing arbitration filed by the Polish company for failing to supply contracted cargoes - would deliver its first liquefied natural gas cargo on April 23.
He said Orlen expects the arbitration proceedings to begin at the end of the year.
Other major oil companies including Shell and BP also filed arbitration cases against Venture Global last year. Venture Global has rejected the claims in the cases.
Orlen is one of the biggest energy groups in Central and Eastern Europe. Its largest crude supplier is Saudi Aramco while it imports pipeline gas from Norway and LNG from the United States and Qatar.
($1 = 3.9524 zlotys)
(Reporting by Rafal W. Nowak and Marek Strzelecki; Editing by David Goodman, Kevin Liffey and Emelia Sithole-Matarise)
