Poland’s oil and gas giant, Orlen, suffered major losses, raising calls from Polish conservatives to initiate an investigation over mismanagement and poor investment decisions.
The company, which grew into a profitable behemoth under the previous conservative Law and Justice (PiS) administration, is now showing signs of struggling under new management. It is the largest company in Central and Eastern Europe and nearly half of the company’s shares are owned by the Polish state.
“Today, the stock exchange shows that Orlen is being managed ineptly and we can clearly see that,” said Daniel Obajtek, MEP from Law and Justice and former CEO of Orlen, while appearing on wPolsce24.
On X, he also wrote: “I suggest prosecutors, law firms, and consulting firms take a close look at how badly it is currently managed.”
The company reported losses of 275 million PLN (€63 million) tied to its investment in Ruch and Polska Press.
“The Orlen Group is carefully analyzing all investment opportunities, focusing on those that bring the highest rates of return. We are also analyzing investments made by the previous management in this respect. In the case of Ruch and Polska Press alone, they have so far brought the company PLN 275 million in losses,” the press office of Orlen reported on social media.
While appearing on the “Ekspres polityczne wPolsce24” program, Obajtek referred to the Orlen Group taking out a loan of €2 billion for current operations and maintaining financial liquidity, as reasons behind the Orlen shares.
The company has already announced an audit and law firms looking into the company. It is carrying out a detailed review of the activities of the capital group for the period from January 2016 to February 2024, with over 50 inspections and audits having already been completed and another 50 still in progress.
“Procedural activities, at various stages of the proceedings, are also conducted by the prosecutor’s office and law enforcement authorities,” the company said, adding that out of 28 key investigations, 12 concern Orlen and 16 other companies from the capital group, according to Polish news outlet DoRzeczy.
Obajtek, the former CEO of Orlen, raised questions about the firms tied to these audits, saying they are close to the liberal government. As for Orlen in the future, Obajtek does not see a successful trend line.
“Even analysts see it, markets see it, we all see it, how much Orlen shares cost, which are weakening. These results are very poor and these actions of the management are, in my opinion, wrong in some directions,” he stated.
