Orlen Group SA has indicated that the profitability of its petrochemical business has been continuously declining since 2025, a trend that began in the fourth quarter of 2024.

In the financial results for the fourth quarter and full year of 2024 released on February 27 (data as of February 14), the company pointed out that the profit margins for its olefins, polyolefins, and aromatic products have all narrowed compared to the end of last year.

As of February 14, the profit margins for ethylene and propylene were 640 euros and 510 euros per tonne, respectively, representing a decrease of 4% and 6% compared to the average profit margins of 669 euros and 542 euros per tonne in the fourth quarter. Compared to the previous quarter (669 euros and 550 euros per tonne), the quarterly profit margins for ethylene and propylene remained flat or slightly decreased.

The profit margins for polyethylene (PE) and polypropylene (PP) were 445 euros and 385 euros per tonne, respectively, down 4% and 7% from the quarter ending December 31, 2023. The average profit margins for the fourth quarter at 465 euros and 416 euros per tonne had also declined from 471 euros and 423 euros per tonne in the third quarter.

The p-xylene profit margin for Orlen Group as of February 14 had dropped to 278 euros per tonne, a 9% decrease from the average fourth-quarter profit margin of 305 euros per tonne, and a 25% drop from the third quarter.

Despite the decline in profit margins, due to increased plant availability, sales volume increased by 333,000 tonnes to reach 1.16 million tonnes, resulting in a 19% year-on-year growth in petrochemical product sales for the fourth quarter, amounting to 3.64 billion zloty (913 million US dollars).

Orlen Group stated that market pressures and macroeconomic challenges continued to negatively impact the industry's performance during the quarter, with EBITDA losses reaching 748 million zloty, an increase from 327 million zloty in the same period last year. Orlen Group noted that the fourth quarter was affected by declining profit margins (especially for purified terephthalic acid and fertilizers) and rising costs associated with CO2 emissions.