Fueling Growth: ORLEN’s European Expansion Strategy Hits 3,500 Service Stations

Fueling Growth: ORLEN’s European Expansion Strategy Hits 3,500 Service Stations

(IN BRIEF) ORLEN, an energy company, has experienced rapid expansion with acquisitions in Austria, Germany, Slovakia, and Hungary, increasing its foreign station count by nearly a third in the past year. They are finalizing the purchase of over 60 service stations in Hungary, set to provide access to over 3,500 ORLEN locations across seven European countries by mid-2024. ORLEN aims to bring all newly acquired facilities up to its high standards and develop EV charging infrastructure. They have expanded substantially in Germany, the Czech Republic, and Austria, with plans for further growth. ORLEN’s retail presence now extends to Slovakia, Lithuania, and Hungary. This achievement aligns with ORLEN’s development strategy in the retail segment, boasting a network of 3,442 sites across seven countries in Central and Eastern Europe, offering a variety of services to motorists.

(PRESS RELEASE) PŁOCK, 25-Jan-2024 — /EuropaWire/ — Orlen S.A. (WSE: PKN), a Polish oil refiner and petrol retailer, proudly announces a significant milestone in its rapid expansion strategy. Following strategic acquisitions in Austria, Germany, Slovakia, and Hungary, ORLEN’s foreign station count has surged by nearly one-third over the past year. The group is in the final stages of acquiring more than 60 service stations in Hungary, poised to provide motorists with access to over 3,500 ORLEN locations across seven European countries by mid-2024.

Daniel Obajtek, CEO and President of the Management Board of ORLEN, emphasized the company’s strong position and commitment to growth, stating, “We have established a modern corporation that is rapidly solidifying its position in the region. By the end of this year, we will achieve our strategic target of a fuel sales network comprising 3,500 sites. Leveraging ORLEN’s strong position, M&A experience, and financial capabilities, we have increased our station count by nearly 350 in the past 12 months, including over 330 service stations abroad. Our priority now is to bring all newly acquired facilities up to the high standards that are the hallmark of the ORLEN retail network. Additionally, we will consistently develop the EV charging infrastructure at further service stations.”

ORLEN’s remarkable growth is evident in its current count of 1,514 service stations outside Poland, reflecting a substantial increase of 337 since the end of 2022. Germany stands as its largest foreign market, with 607 sites operating under the ORLEN and Star brands. ORLEN is actively rebranding its stations in the German market, with nearly 100 sites expected to operate under the ORLEN brand by the end of February. Moreover, plans are in place to increase the number of service stations with EV charging infrastructure in Germany to over 430 within the next two years.

In the Czech Republic, ORLEN boasts the largest retail network with 436 service stations, over 90% of which operate under the ORLEN brand. These stations are gradually being upgraded with EV chargers, currently available at 267 locations. In 2023, ORLEN also launched two public hydrogen refueling stations, contributing to sustainable mobility solutions.

The acquisition of service stations in Austria marked a significant achievement for ORLEN, establishing its presence in the seventh market with an approximate 10% market share. The acquisition included the Turmöl network of 267 service stations and Austrocard, a fuel card provider serving private and business customers. ORLEN’s retail presence extends to Slovakia (91 service stations), Lithuania (30 service stations), and Hungary (83 service stations), with the latest acquisition in Hungary positioning ORLEN as the third-largest retail network in the country, exceeding 140 stations.

The achievement of over 3,500 service stations, including 1,572 abroad and 1,929 in Poland, marks the successful realization of ORLEN’s development strategy in the retail segment. The ORLEN station network encompasses 3,442 sites across seven countries in Central and Eastern Europe, with more than half featuring Stop Cafe or Star Connect facilities, offering a wide range of meals, snacks, and hot drinks, along with grocery options. In 2023, ORLEN opened Stop Cafes in more than 160 locations in Poland, with 60% of domestic service stations adopting this format.

Media contact:
media@orlen.pl

SOURCE: ORLEN