PROFILE

Polski Koncern Naftowy Orlen is Polish-based but with a growing international footprint. The state-owned energy corporation, which supported Robert Kubica’s return to Formula 1 and is now title sponsor of the Alfa Romeo team, began expanding international

Daniel Obajtek, CEO of PKN Orlen, Alfa Romeo’s title sponsor

GP Racing: How does Formula 1 fit into your marketing strategy?

Daniel Obajtek: PKN Orlen is already a global brand. You’ll find our asphalt as far afield as Mauritius or the Samoan Islands. Our oils are severely tested during the Dakar Rally and we have a chain of over 2,800 fuel stations in Germany, Czech Republic, Poland, Lithuania and Slovakia. Nevertheless, we aspire to enhance our brand recognition even more, because this translates into customer interest. For that purpose, we are implementing a co-branding process at our foreign gas stations.

We anticipate that ultimately Orlen will be the exclusive brand in all facilities. To strengthen awareness, we also invest in several sporting disciplines. In 2019 alone the advertising equivalent of our brand’s exposure on TV exceeded $44million – after all, Formula 1 races are watched by two billion viewers around the world.

GPR: What other value does a corporation such as Orlen get from sports sponsorship?

DO: According to a study by the market research company ARC, PKN Orlen is consistently perceived as the most proactive sponsor of sports events in Poland, 13% ahead of Adidas. Our brand enjoys almost 100% recognition on the domestic market. However, as a company whose products are present in over 116 countries, on five continents, with 60% of revenues generated abroad, we must also think of the global reach of the brand. Locally this translates directly into an increase in retail sales.

Over the last year the sale of fuels in the entire Orlen Group increased by 4% while the sale of non-fuel items also grew. One in five Polish drivers say our co-operation with Robert Kubica makes them use our products and services more often. Sports sponsorship worldwide provides an invaluable boost to our business activities, including oil and asphalt sales. Exposure of our logo during races makes it easier to establish relationships with global trade partners, and sometimes it’s crucial for such relationships to materialise.

GPR: Other fuel companies present in Formula 1 are involved in technological development as well as using it as a marketing vehicle. Would you consider following this route?

DO: As a technology partner, we already have extensive experience in motorsport. For years we’ve been cooperating with cross-country drivers who test our greases and oils in the extreme conditions that prevail at the Dakar Rally, among others. Perhaps we already have sufficient know-how to become a tech partner in F1 as well. We do not exclude that. After all, three years ago nobody would have imagined that a Polish company could become a partner of an F1 team. Of course, we’re still at the beginning. F1 is changing, its technical regulations and financial rules are changing too. We’ve prepared various scenarios for the future.

GPR: Many other energy companies are looking to diversify away from hydrocarbons in the future. What’s your strategy for adapting to change in the coming years?

DO: We are fully aware of the current trends and are already investing in the development of petrochemicals and low-emission power generation. We’ve just completed the acquisition of Energa Group, one of the Polish power companies with the biggest share of renewable sources used for power generation. This will diversify our production and increase our potential in the development of alternative fuels.

GPR: What have been the main challenges to your business during the COVID-19 pandemic?

DO: As a global player on the fuel market, we feel responsible for the Polish economy. Of course, the continuity of fuel supplies and safety for our employees are of paramount importance. We’ve demonstrated 100% efficiency in those two areas. The implementation of appropriate procedures effectively eliminated potential risks, but as a socially responsible company we wanted to do more than just secure our business. That’s why we decided to support the health care professionals and uniformed services and all Poles in the fight against the pandemic.