Polish refiner Orlen should escape windfall tax, says CEO

GDANSK (Reuters) – Polish refiner PKN Orlen does not expect to be hit by the government’s planned windfall tax because it is carrying out investment important to Poland’s energy security, Chief Executive Daniel Obajtek said on Tuesday.

Poland expects to raise 13.5 billion zlotys ($2.77 billion) from a windfall tax on energy companies, the government announced in September, and was considering extending the measures to other businesses.

“Companies that have excess profit, I believe, should be taxed in this regard … but PKN Orlen does not have excess profit … I don’t see these (legislative proposals) as hitting Orlen very strongly,” Obajtek said on the RMF FM radio station.

“We are investing in Poles, in the security of Poles, in low-emission power plants, zero-emission sources, in refinery modernisation. This is important for our security.”

Obajtek said the company is carrying out wide-ranging investments and is working on its merger with Polish gas company PGNiG after previous takeovers of utility Energa and refiner Grupa Lotos.

“Next year we plan to spend 23 billion (zlotys) on investments,” he said

Obajtek added that he expects the PGNiG takeover to happen within weeks, preferably at the start of November.

PKN shareholders approved the merger in September and PGNiG shareholders are set to vote on Oct. 10.

(Reporting by Karol Badohal and Adrianna Ebert; Editing by Louise Heavens and David Goodman)