The net income of ORLEN for the first quarter came in at 2.77 billion zloty, marking a substantial 70% decrease year-over-year, and missing the estimate of 3.24 billion zloty.
The company’s revenue for the same period was 82.33 billion zloty, a decrease of 29% year-over-year, though it beat the estimate of 78.61 billion zloty.
ORLEN’s Ebit for 1Q was appreciably lower than estimates, coming in at 4.32 billion zloty, -66% year-over-year, against an expected 5.13 billion zloty.
Ebitda, based on LIFO accounting method, was 7.67 billion zloty, showing a year-on-year reduction of 57%.
ORLEN reported that the 1Q Ebitda-LIFO was impacted by a 0.7b zloty write-off, most of which is associated with the petrochemical unit.
The model refining margin from April 1 to May 10 declined to $12.9/bbl from $15.9/bbl in the first quarter.
In terms of buy, hold and sell recommendations, ORLEN stands at 10 buys, 1 hold, and 1 sell.
A look at ORLEN Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 5 | |
| Growth | 5 | |
| Resilience | 3 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 4.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
ORLEN Spolka Akcyjna, a multi-utility company, demonstrates a strong long-term outlook across various factors. With top scores in Value, Dividend, and Growth, the company is positioned well for future success. The high value score reflects its attractive investment opportunities, while the solid dividend score indicates consistent returns for shareholders. Additionally, the growth score highlights the company’s potential for expansion and profitability. Although scoring slightly lower in Resilience and Momentum, ORLEN’s overall outlook remains robust.
ORLEN Spolka Akcyjna, known for its diverse operations in electricity generation, crude oil processing, and fuel production, shows a promising trajectory based on its Smart Scores. Investors looking for a company with strong fundamental values, stable income through dividends, and significant growth prospects may find ORLEN to be an attractive long-term investment option. Despite facing moderate challenges in resilience and momentum, the company’s strategic positioning within various sectors presents a favorable outlook for sustainable growth and value creation over time.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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