Implementation of growth-oriented projects in the most promising areas will be made possible by the strengthening of the integrated value chain, the Company's financial strength and modern management culture.
1) Annual average LIFO-based EBITDA (operating profit before depreciation and amortisation, with inventory valued using the LIFO method) in 2014-2017.
2) DPS – dividend per share.
Value creation – the Company will focus on securing a strong position on large and promising growth markets, strong customer-oriented approach, operational excellence, strengthening the integrated value chain, and sustainable development of its upstream operations. In the Refining, Petrochemicals and Retail segments, we will concentrate on improving efficiency and maximising value. In the Power Generation and Upstream segments, we will focus on using our potential as a value creation driver. With improved operating performance and operating cash flow we will be able to earmark higher amounts for the financing of growth, in particular in the Upstream and Power Generation segments.
Financial strength – consistent increase in dividend per share (DPS) is one of ORLEN’S strategic objectives. Our dividend policy has not changed and envisages dividend payments with due consideration given to the strategic objective of maintaining safe financial fundamentals and to macroeconomic forecasts. We plan to keep a safe level of financial leverage and to observe our net debt/(operating profit plus depreciation and amortisation) covenant. Another strategic objective is to maintain investment-grade rating. With financial ratios at a safe level, we will have greater flexibility in raising financing.
People – responsibility for people, the environment and trading partners: no tolerance for accidents, responsible approach to local communities, the natural environment and trading partners. Focus on human capital and innovation: consistent efforts to build an experienced and competent team, stable increase in research and development spending and implementation of innovative solutions.
In 2014–2017, PLN 10.8bn will be spent on growth oriented projects. PLN 5.5bn has been allocated to upgrade projects to maintain the high performance of production units and to ensure compliance with regulatory requirements. The planned capital expenditure is consistent with the assumed average annual LIFO-based EBITDA of PLN 5.1bn.
Key success factors of the 2014–2017 strategy