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ORLEN Polski Koncern Naftowy ORLEN Spółka Akcyjna Daniel Obajtek President & CEO Ladies and Gentlemen , Dear Shareholders , The fuel and energy industry is largely driven by macroeconomic factors and trends in the global economy . Last year , the operations of the entire sector , including PKN ORLEN , were severely affected by the continuing headwinds in the macroeconomic environment . All over the world , companies had to face the unprecedented developments presented by the COVID - 19 pandemic . Its adverse effects were particularly strong in the refining industry owing to the far - reaching restrictions on the mobility of people and goods . However , PKN ORLEN once again successfully proved that with its sustainable development strategy and safe finance management it can operate efficiently in a challenging environment and deliver stable performance . This is demonstrated by the financial figures . In 2020 , PKN ORLEN posted a robust LIFO EBITDA of PLN 12.1 billion and net profit of PLN 2.8 billion , including gain on bargain purchase of the Energa Group . Our retail and power generation business generated a record - high operating profit of PLN 3.9 billion , with LIFO EBITDA at PLN 3.4 billion . Despite the adverse macroeconomic conditions due to the COVID - 19 pandemic , our revenue reached PLN 86.2bn . Last year , we actively managed our sources of financing and maintained our financial ratios at a safe level . In the fourth quarter , PKN ORLEN issued PLN 1 billion worth of sustainability bonds , with the margin linked to our MSCI ESG rating performance . We secured very good terms of financing - the interest rate was the lowest in PKN ORLEN's history and the margin was the lowest since the 2008 financial crisis . With the stable and solid financial standing , we were able to pursue many important growth - oriented projects , on which we spent a total of PLN 9 billion last year , as planned . In 2020 , PKN ORLEN worked consistently to build its value and competitive advantages . We developed and expanded petrochemical production and proceeded with the integration of our refining assets , placing a great focus on developing the segment . Furthermore , the pace of R & D and implementation work , supporting all areas of our business , was accelerated . Above all , however , we focused even more on transforming the ORLEN Group into a multi - utility conglomerate , which is our future . We intend to achieve this goal by giving effect to planned consolidation of the Polish market . In April 2020 , the ORLEN Group was joined by the Energa Group . This is undoubtedly a success , as the acquisition was completed in just four months , which makes it the largest and shortest process of this type in Poland . By combining the potentials of the two companies , we will be able to continue activities aimed at increasing the role of low- and zero - carbon energy sources in the national energy mix , and thus Poland's energy security . Last year , we moved significantly closer to finalising the acquisition of the LOTOS Group , a process we see as a requisite driver of the business future of both companies , their shareholder value and energy security of Poland . In July 2020 , after months of difficult negotiations , PKN ORLEN obtained conditional clearance of the transaction from the European Commission . Its closing is in the final straight . We are in talks with potential partners with whom PKN ORLEN will implement the remedies negotiated with the European Commission for the merger with the LOTOS Group . Polski Koncern Naftowy ORLEN Spółka Akcyjna Bielańska 12 , 00-085 Warsaw , Poland . tel : ( +48 22 ) 778 05 05 , fax : ( +48 24 ) 367 70 01