Polish business newspaper Puls Biznesu reports that PKN remains interested in acquiring gas stations in the Czech Republic, Germany and Lithuania as it seeks to build its market share there. Citing Mr Wojciech Heydel, board member of the Polish downstream oil company, Puls Biznesu reports that Orlen wants to raise its market share in Lithuania to 15-20% from current 4%, in Germany to 10% from current 7% and in the Czech Republic to 15% from current 11.5%.
Our view: Orlen’s retail expansion plans are well known on the market regarding Lithuania and the Czech Republic. In Germany, the company was considering to sell Orlen Deutschland, however, finally decided to strengthen its network in the country to reach critical mass and obtain better price before disposal. We are a bit afraid, however, that management of PKN Orlen has not enough power to concentrate on all of the goals set: upstream expansion, Mazeikiu Nafta upgrade, retail expansion in many countries and Unipetrol
integration. Therefore, we consider the news on the forced retail expansion on the tough retail fuel market in Germany as slightly worrisome.