Downstream – Sales

The main challenge facing the European downstream industry's refining segment is shrinking demand, which led to a material reduction of processing volumes and shut-downs of European refineries. In the petrochemical area of the downstream industry, a factor that plays a vital role in improving the situation of European manufacturers is the development of a high-margin specialist product mix.

Market environment

The main challenge facing the European downstream industry’s refining segment is shrinking demand, which led to a material reduction of processing volumes and shut-downs of European refineries. According to IHS CERA data, the demand for fuels in Europe has been declining steadily since 2008 − in 2014, it was 13% lower than six years before, and flat year on year. The global consumption of diesel oil and gasoline will increase at a relatively high pace of 1.6% annually, assuming global GDP growth. 

Change in diesel oil and gasoline consumption [2,000=100%]

Wykres: Zmiana konsumpcji ON i benzyny [2000=100%].

*) CAGR – compound annual growth rate.

Source: IHS CERA.

In the petrochemical area of the downstream industry, a factor that plays a vital role in improving the situation of European manufacturers is the development of a high-margin specialist product mix. Launching production of more advanced products requires not only changes in the technological regime of production facilities, but also strong R&D capabilities, capital expenditure, changes in the sales channels, and building long-term relations with customers.

The enduring gap between polyolefins consumption in Western Europe and Poland and Central and Eastern Europe confirms a large development potential for the ORLEN Group. 

Polyolefin consumption per capita [kg/year]

Wykres: Konsumpcja poliolefin per capita [kg/rok].

Source: In-house analysis.

Operations in 2014

In 2014, the ORLEN Group conducted wholesale of refining products in Poland, the Czech Republic, Germany, Slovakia, Hungary, Lithuania, Latvia, Estonia, Finland and Ukraine, as well as (by sea) to West-European cargo-handling terminals. The Group’s home markets are Poland, Lithuania and the Czech Republic. ORLEN offers a wide variety of refining products, including gasolines, diesel oil, jet fuel, heavy and light fuel oil, as well as an extensive range of non-fuel products and semi-finished products.

Downstream Wholesale

ORLEN is one of the largest petrochemical companies in Central and Eastern Europe, the only monomer and polymer producer in Poland, and the manufacturer of most petroleum products on the Czech market. Its competitors on the European market are companies which manufacture and offer the same petrochemical products.

Europojscy producenci ORLEN