5. ORLEN Group structure

PKN ORLEN as Parent Company is a multi-segment entity, appropriately allocated to all operating segments and corporate functions.

Name of the entityParent companyShare in total voting rightsConsolidation method/Valuation methodWebsite
  31/12/201431/12/2013  
Downstream Segment          
Production and trading           
AB ORLEN Lietuva (ORLEN Lietuva) PKN ORLEN S.A. 100% 100% full www.orlenlietuva.lt
Anwil S.A. PKN ORLEN S.A. 100% 100% full www.anwil.pl
Basell ORLEN Polyolefins Sprzedaż Sp. z o.o. Basell ORLEN Polyolefins Sp. z.o.o. 100% 100% equity method  
Chemopetrol a.s.  UNIPETROL RPA s.r.o. 100% 100% full  
Fabryka Parafin Naftowax Sp. z o.o. 1 RAFINERIA TRZEBINIA S.A. 1 100% 100% full www.naftowax.pl
Inowrocławskie Kopalnie Soli "Solino" S.A. PKN ORLEN S.A. 100% 100% full www.solino.pl
Kopalnia Soli Lubień Sp. z o.o. PKN ORLEN S.A. 100% - full  
Mogul Slowakia s.r.o. PARAMO A.S. 100% 100% full  
ORLEN Asfalt Sp. z o.o.  PKN ORLEN S.A. 100% 100% full www.orlen-asfalt.pl
ORLEN Gaz Sp. z o.o. PKN ORLEN S.A. 100% 100% full www.orlengaz.pl
Orlen Oil Cesko s.r.o. 3 ORLEN OIL Sp. z o.o. 100% 100% full www.orlenoil.cz
ORLEN Oil Sp. z o.o. PKN ORLEN S.A. 100% 100% full www.orlenoil.pl
ORLEN Paliwa Sp. z o.o.  PKN ORLEN S.A. 100% 100% full www.orlenpaliwa.com.pl
ORLEN Petrotank Sp. z o.o. PKN ORLEN S.A. 100% 100% full www.orlenpetrotank.pl
OU ORLEN Eesti (previously OU Mazeikiu UAB Mezeikiu naftos prekybos namai 100% 100% full  
Paramo a.s. UNIPETROL A.S. 100% 100% full www.paramo.cz
ORLEN Asfalt Ceska Republika s.r.o. ORLEN ASFALT Sp. z o.o.  100% 100% full www.paramoasfalt.cz
Paramo Oil s.r.o. PARAMO A.S. 100% 100% full  
Platinum Oil Sp. z o.o. ORLEN OIL Sp. z o.o. 100% 100% full www.platinumoil.pl
Rafineria Nafty Jedlicze S.A. 1 PKN ORLEN S.A. 100% 100% full www.rnjsa.com.pl
Spolana a.s. ANWIL S.A. 100% 100% full www.spolana.cz
SIA ORLEN Latvija (previously SIA Mazeikiu Nafta Tirdzniecibas nams)     UAB Mezeikiu naftos prekybos namai 100% 100% full  
UAB Mezeikiu naftos prekybos namai AB ORLEN Lietuva 100% 100% full  
UNIPETROL Austria HmbH (in liquidation) UNIPETROL A.S. 100% 100% full  
UNIPETROL Deutschland GmbH UNIPETROL RPA s.r.o. 100% 100% full www.unipetrol.de
UNIPETROL RPA s.r.o. UNIPETROL A.S. 100% 100% full www.unipetrolrpa.cz
UNIPETROL Rafinerie s.r.o UNIPETROL A.S. 100% 100% full  
UNIPETROL Slovensko s.r.o. UNIPETROL RPA s.r.o. 100% 100% full www.unipetrol.sk
Rafineria Trzebinia S.A. 1 PKN ORLEN S.A. 99.46% 86.35% full www.rafineria-trzebinia.pl
Ceska Rafinerska a.s.  UNIPETROL A.S. 67.56% 51,22% share in assets and liabilities www.ceskarafinerska.cz
Ship-Service S.A.  PKN ORLEN S.A. 60.86% 60,86% full www.ship-service.pl
Butadien Kralupy a.s. UNIPETROL A.S. 51% 51% share in assets and liabilities  
Basell ORLEN Polyolefins Sp. z o.o. Services  PKN ORLEN S.A. 50% 50% equity method www.basellorlen.pl
EkoNaft Sp. z o.o. RAFINERIA TRZEBINIA S.A. 1 100% 100% full www.ekonaft.pl
Energomedia Sp. z o.o. RAFINERIA TRZEBINIA S.A. 1 100% 100% full www.energomedia.pl
Euronaft Trzebinia Sp. z o.o. RAFINERIA TRZEBINIA S.A. 1 100% 100% full www.euronaft-trzebinia.pl
ORLEN Automatyka Sp. z o.o. PKN ORLEN S.A. 100% 100% full www.orlenautomatyka.pl
ORLEN Eko Sp. z o.o. PKN ORLEN S.A. 100% 100% full www.orleneko.pl
ORLEN Transport S.A. PKN ORLEN S.A. 100% 100% full www.orlentransport.pl
Petrolot Sp. z o.o. PKN ORLEN S.A. 100% 100% full www.petrolot.pl
Polymer Institute Brno s.r.o. UNIPETROL RPA s.r.o. 100% 100% full  
Przedsiebiorstwo Inwestycyjno-Remontowe RemWil Sp. z o.o. ANWIL S.A. 100% 100% full www.remwil.pl
Przedsiębiorstwo Usług Specjalistycznych i Projektowych Chemeko Sp. z o.o. ANWIL S.A. - 100% full www.chemeko.pl
RAF- Służba Ratownicza Sp. z o.o. (in liquidation) RAFINERIA NAFTY JEDLICZE S.A. 1 100% 100% full  
RAF-Koltrans Sp. z o.o. (in liquidation) RAFINERIA NAFTY JEDLICZE S.A. 1 100% 100% full  
UAB Emas AB ORLEN Lietuva 100% 100% full  
UAB Paslaugos TAU AB ORLEN Lietuva 100% 100% full  
UNIPETROL Doprava s.r.o. UNIPETROL RPA s.r.o. 100% 100% full  
Downstream Segment          
Services           
Vyzkumny Ustav Anorganicke Chemie a.s. UNIPETROL A.S. 100% 100% full  
Zakładowa Straż Pożarna Sp. z o.o. 1 RAFINERIA TRZEBINIA S.A. 100% 100% full  
ORLEN KolTrans Sp. z o.o. PKN ORLEN S.A. 99.85% 99.85% full www.orlenkoltrans.pl
Przedsiebiorstwo Produkcyjno-Handlowo-Usługowe Pro-Lab Sp. z o.o. ANWIL S.A. 99.32% 99.32% full www.prolab.pl
Konsorcjum Olejów Przepracowanych - Organizacja Odzysku S.A. RAFINERIA NAFTY JEDLICZE S.A. 1 81% 81% full www.konsorcjum.jedlicze.
ORLEN Wir Sp. z o.o. PKN ORLEN S.A. 76.59% 76.59% full www.orlenwir.pl
Power Engineering           
Baltic Power Sp. z o.o. PKN ORLEN S.A. 100% 100% full www.balticpower.eu
Baltic Spark Sp. z o.o. PKN ORLEN S.A. 100% 100% full  
Retail Segment           
Trading           
AB Ventus-Nafta AB ORLEN Lietuva - 100% full  
AB Ventus-Nafta PKN ORLEN S.A. 100% - full  
Benzina s.r.o. UNIPETROL A.S. 100% 100% full  
ORLEN Deutschland GmbH PKN ORLEN S.A. 100% 100% full www.orlen-deutschland.de
Services           
ORLEN Budonaft Sp .z o.o. PKN ORLEN S.A. 100% 100% full www.budonaft.com.pl
Petrotans s.r.o. BENZINA s.r.o. 100% 100% full www.petrotrans.cz
ORLEN Centrum Serwisowe Sp. z o.o. PKN ORLEN S.A. 99.33% 99.33% full www.orlencs.pl
Upstream Segment           
Exploration and extraction            
ORLEN Upstream Sp. z o.o. PKN ORLEN S.A. 100% 100% full www.orlenupstream.pl
ORLEN International Exploration & Production Company BV  ORLEN UPSTREAM Sp. z o.o. 100% - full  
ORLEN International Exploration & Production Company BV PKN ORLEN S.A. - 100% full  
ORLEN Upstream International BV ORLEN UPSTREAM Sp. z o.o. 100% 100% full  
TriOilResources Ltd. 2 ORLEN Upstream International BV 100% 100% full www.trioilresources.com
1426628 Alberta Ltd. TriOilResources  Ltd. 2 100% 100% full  
OneEx Operations Partnership TriOilResources  Ltd. 2 100% 100% full  
SIA Balin Energy (in liquidation) OIEP Co BV 50% 50% share in assets and liabilities  
Corporate Functions           
Services           
AB ORLEN Lietuva (ORLEN Lietuva) PKN ORLEN S.A. 100% 100% full www.orlenlietuva.lt
ORLEN Administracja Sp. z o.o. PKN ORLEN S.A. 100% 100% full www.orlenadministracja.pl
ORLEN Capital AB PKN ORLEN S.A. 100% - full  
ORLEN Centrum Usług Korporacyjnych Sp. z o.o. (until  31 December 2013 Orlen Księgowość Sp. z o.o.) PKN ORLEN S.A. 100% 100% full www.orlencuk.pl
ORLEN Finance AB PKN ORLEN S.A. 100% 100% full  
ORLEN Holding Malta Ltd. PKN ORLEN S.A. 100% 100% full  
Orlen Insurance Ltd. ORLEN HOLDING MALTA Ltd. 100% 100% full  
ORLEN Ochrona Sp. z o.o. PKN ORLEN S.A. 100% 100% full www.orlenochrona.pl
ORLEN Serwis S.A. PKN ORLEN S.A. 100% - full  
UAB Apsauga ORLEN OCHRONA Sp. z o.o. 100% 100% full www.orlenapsauga.lt
UNIPETROL RPA s.r.o. UNIPETROL A.S. 100% 100% full www.unipetrolrpa.cz
UNIPETROL Services s.r.o. UNIPETROL A.S. 100% 100% full  
ORLEN Projekt S.A. PKN ORLEN S.A. 99.77% 99.77% full www.orlenprojekt.pl
ORLEN Laboratorium Sp. z o.o. PKN ORLEN S.A. 99.38% 99.38% full www.orlenlaboratorium.pl
HC Verva Litvinov a.s.  UNIPETROL RPA s.r.o. 70.95% 70.95% full  
Centrum Edukacji Sp. z o.o. PPPT S.A. 69.43% 69.43% equity method www.centrumedukacji.pl
UNIPETROL A.S. PKN ORLEN S.A. 62.99% 62,99% full www.unipetrol.cz
Płocki Park Przemysłowo-Technologiczny S.A. PKN ORLEN S.A. 50% 50% equity method www.pppt.pl
ORLEN Medica Sp. z o.o. PKN ORLEN S.A. - 100% full www.orlenmedica.pl
Sanatorium Uzdrowiskowe Krystynka Sp. z o.o. ORLEN MEDICA Sp. z o.o. - 98.58% full www.sanatoriumkrystynka.pl

1) from 05.01.2015 ORLEN Południe S.A.
2) from 10.03.2015 ORLEN Upstream Canada Ltd.
3) as of 14.02.2015 Orlen Oil Cesko s.r.o was removed from the Trade Register Share in total voting rights is equal to share in equity

ACTIVITY OF CORE COMPANIES BELONGING TO ORLEN GROUP

NAME OF THE ENTITYHEADQUARTERS PRINCIPAL ACTIVITY
UNIPETROL a.s.
(including its own Capital Group)
Czech Republic - Prague crude oil processing as well as manufacture and distribution of refinery,
petrochemical and chemical products
AB ORLEN Lietuva
(including its own Capital Group)
Lithuania - Juodeikiai crude oil processing, production of refining products and wholesale
Anwil S.A. Poland - Wloclawek production of nitrogen fertilizers, plastic and chemicals
ORLEN Upstream Sp. z o.o.
(including its own Capital Group)
Poland – Warsaw exploration and prospecting of hydrocarbon deposits, extraction of crude oil and natural gas
ORLEN Oil Sp. z o.o. Poland – Cracow production, distribution and sale of grease oils, maintenance liquids
ORLEN Gaz Sp. z o.o. Poland - Plock   wholesale of liquid gas, distribution of gas in cylinders
ORLEN Asfalt Sp. z o.o. Poland - Plock   manufacture and sale of road bitumens and specific bitumen products
Rafineria Trzebinia S.A. 1 Poland – Trzebinia crude oil processing, production and sale of biofuels, oils
ORLEN Paliwa Sp. z o.o. Poland - Plock   liquid fuels trade
Inowrocławskie Kopalnie Soli "SOLINO" S.A. Poland – Inowroclaw storage of crude oil, fuels and gases, extraction and supply of brine
ORLEN Transport S.A. Poland - Plock   transport services
ORLEN KolTrans Sp. z o.o. Poland - Plock   rail services

1) from 05.01.2015 ORLEN Południe S.A.

Structured entities

ORLEN CAPITAL AB

The company’s business is to conduct financial activities aimed to raising funds through the issuance of bonds and other financial instruments for institutional and private investors. ORLEN Capital AB specializes in granting borrowings or loans to group companies and conduct any other activities related to the financial instruments. 

On 30 June 2014 ORLEN Capital AB and PKN ORLEN issued eurobonds with 7-year redemption of approximately of PLN 2,080 million translated using exchange rate as at 30 June 2014 (representing EUR 500 million).The funds obtained by ORLEN Capital through the issue were transferred to PKN ORLEN under the borrowing agreement. PKN ORLEN is the guarantor of the issued bonds by an irrevocable and unconditional guarantee issued to the bondholders of PLN 4,262 million translated using exchange rate as at 31 December 2014 (equivalent of EUR 1 billion). The guarantee was granted for the time of the eurobond issue, until 30 June 2021.

ORLEN FINANCE AB

The company’s business is to conduct financial services trough transactions within the ORLEN Group, including intercompany borrowings and loans, as well as any other financial instruments.

As at 31 December 2014 the Group has issued the guarantee to ORLEN Finance for related parties of PLN 940 million and to the third parties of PLN 852 million.

 

5.1.  Changes in the ORLEN Group’s structure from 1 January 2014 up to date of preparation of these report

5.1.1. Acquisitions under common control not affecting the financial data of the Group

2014 

As a part of the centralization of environmental services within the ORLEN Group, on 26 June 2014, ORLEN Eko Sp. z o.o. acquired from both ANWIL S.A. and Przedsiębiorstwo Inwestycyjno – Remontowe RemWil Sp. z o.o. – subsidiary of ANWIL, a total of 100% shares of Chemeko Sp. z o.o. The transfer of ownership of shares took place on 1 July 2014. As at 31 October 2014, ORLEN Eko merged with the Chemeko company.

On 31 July 2014, PKN ORLEN acquired 100% of shares of AB Ventus Nafta from ORLEN Lietuva.

On 29 December 2014, a share capital of AB ORLEN Lietuva was increased through the issue of 10,379,678 new ordinary registered shares, a nominal value of LTL 1 each.

The value of the issue amounted to USD 300 million, i.e. LTL 847 million (calculated at the rate from 29 December 2014). The issue price of one share was USD 28.90 which represents approximately LTL 81.62.

The shares from the issue were acquired by PKN ORLEN. The stake of PKN ORLEN in the share capital remained unchanged and amounted to 100%.

Funds from this issue were used to repay debt to the ORLEN Group by AB ORLEN Lietuva.

2015

  • On 5 January 2015, a merger between Rafineria Trzebinia S.A. and the acquired companies: Rafineria Nafty Jedlicze S.A., Fabryka Parafin Naftowax Sp. z o.o. and Zakładowa Straż Pożarna Sp. z o.o. The company operates under the new name ORLEN Południe S.A. since 5 January 2015;

  • On 19 March 2015 the merger of Baltic Power and Baltic Spark as acquired company.

  • On 20 February 2015 the merger of ORLEN Serwice S.A. with ORLEN Automatyka Sp. z o.o. and Przedsiębiorstwo Inwestycyjno-Remontowe RemWil Sp. z o.o. as an acquired companies;

  • On 22 January 2015 PKN ORLEN acquistition from Anwil S.A. shares of Przedsiębiorsto Inwestycyjno-Remontowe “RemWil” Sp. z o.o, headquarter in Wloclawek;

  • On 5 January 2015, a merger between ORLEN OIL Sp. z o.o and Platinum OIL Sp. z o.o. as the acquired company took place;

5.1.2. Changes in  shareholder structure affecting the financial data of the Group 

Acquisition of shares of Birchill Exploration Limited Partnership 

On 5 June 2014 the ORLEN Group acquired 100% of Birchill Exploration Limited Partnership („Birchill”) shares.

Shares were acquired as an execution of provisions of agreement dated 7 May 2014 concluded between the ORLEN Group’s entity – TriOil Resources Ltd. (“TriOil”) and Bregal – Birchill Investments S.A.R.L. seated in Luxemburg. Acquired shares represented 100% of Birchill’s share capital and 100% votes on the company’s Shareholders Meeting. 5 June 2014 is assumed as a date of taking control (Polish time).

The core business of Birchill is exploration, prospecting and extraction of crude oil and natural gas in Canada. Concluding of the agreement is consistent with the ORLEN Group’s strategy aiming at the development of crude oil and natural gas resource base.

The amount paid for shares by TriOil of PLN 707.4 million was translated using the exchange rate as at 5 June 2014 (representing CAD 255.6 million).

Fair value of the identifiable assets and liabilities of Birchill as at the acquisition date is as follows:

  Carrying amount as at the acquisition day Adjustments to fair value Fair value
Exploration and evaluation of mineral resources assets 4 5 9
Assets related to development and extraction of mineral resources 438 391 829
Trade and other receivables 15  -  15
Assets (A) 457 396 853
Trade and other liabilities 16  -  16
Provision for decommissioning costs of drillings and supporting infrastructure 7 10 17
Provision for deffered income tax  -  113 113
Liabilities (B) 23 123 146
Identifiable net assets at fair value (A-B)     707
Fair value of transferred payment due to acquisition     707

The settlement of executed transaction did not influence the consolidated statement of profit or loss and other comprehensive income due to fair value of net assets recognized in the ORLEN Group was equal to price paid. As a part of the settlement an assessment of completeness and accuracy of identified assets and liabilities acquired in the mentioned transaction as well as to determine fair value of identified assets and liabilities were conducted.

Simultaneously, on 5 June 2014 TriOil and Birchill merger took place. The merger took place by transfer of Birchill’s total assets to TriOil. Taking into account the fact that TriOil possessed 100% shares of Birchill’s share capital, the merger took place without an increase of share capital.

Other changes affecting the financial data of the Group 

In the I quarter 2014, Unipetrol a.s acquired from Shell Overases Investments BV (Shell) 152,701 shares representating 16.335% of Česká Rafinérská share capital. The Group recognized a gain on bargain purchase in other operating income of PLN 180 million, calculated as the difference between the acquired share in equity of Ceska Rafinerska of PLN 263 million, and the purchase price of PLN 82 million. As a result of this transaction, Unipetrol share in the capital of Česká Rafinérská increased to 67.56 %

In May 2014 the ORLEN Group sold to PZU Group shares in ORLEN Medica and in Sanatorium Uzdrowiskowe „Krystynka” as well as in the PROF-MED from ANWIL Group

As a result of this transaction, the Group recognized a gain on these sales of PLN 33 million, in other operating income.

In 2014, PKN ORLEN made a repurchase of non-controlling interests and became the owner of 100 % of shares in: Rafineria Trzebinia – squeezed out of the remaining 13.65% of the shares attributable to the non-controlling interest, ORLEN OIL – acquisition of shares from Rafineria Jedlicze and Rafineria Trzebinia; ORLEN Asfalt - acquisition of shares from Rafineria Trzebinia.

As a result of these transactions, the Group recognized a decrease in equity attributable to non-controlling interest of PLN (72) million and increase of retained earnings by PLN 23 million.

On 3 July 2014 Unipetrol a.s. subsidiary of PKN ORLEN, accepted the offer of an Italian ENI Holding regarding the acquisition of Česká Rafinérská shares, representing 32.445% of share capital of the company. The completion of transaction will have a positive impact on development of Downstream sector.

The total amount of the transaction is estimated for approximately PLN 128 million translated using exchange rate as at 31 December 2014 (representing EUR 30 million). Unipetrol, exercising the pre-emption right, will become the sole owner of Česká Rafinérská. On 19 December 2014, Unipetrol received approval from the Czech Antimonopoly Office for the execution of the above transaction, however on 5 January 2015 an organization, among other of the united independent fuel station operators on the Czech market – SCS - Unie nezávislých  petrolejářů, z.s. filed a compliment to this decision. The effect of above transaction will be recognized after the legally binding decision of Czech Antimonopoly Office.    

Changes in the Group structure are part of the ORLEN Group strategy, assuming the focus on the core activities and allocating the released capital for development of the Group in the most prospective areas - upstream and energy sector.