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How to invest in Orlen? This question is asked by many people who want to invest capital in large Polish companies. Orlen is one of the largest and most popular companies listed on the Warsaw Stock Exchange. What’s more, its main shareholder is the State Treasury. Where and how to buy Orlen shares?
How to invest in Orlen?
Orlen is one of the largest companies in Europe and a highly respected brand in Poland. Orlen stations are located all over the country and are located along major routes. It is one of the largest manufacturers and distributors of fuel products.
And where to buy Orlen shares? The company is listed on the Warsaw Stock Exchange. Its listing can be found under the symbol PKN. As for the main shareholder of PKN Orlen, it is the Treasury, but pension funds also invest in this company. How to invest in Orlen? In particular, you should have an investment account that gives you access to the Polish market.
How to invest in Orlen? What is worth knowing?
Orlen is one of the largest companies listed on the Warsaw Stock Exchange, which is why many investors choose to invest in this company. There are several different options, so everyone should find something for themselves.
The first possibility is to buy Orlen shares. Being a shareholder, you can earn not only by selling shares at a higher price than the purchase price but also on dividends. Orlen has had a favorable policy when it comes to dividends for years, so investors can count on paying out a portion of their profits every year.
Another way to invest in the company is to trade CFDs. These are derivatives that are speculative in nature. This means that you can invest in them on a short-term basis and earn money on the price movements of the underlying instrument, such as a stock.
CFDs can be traded with the help of leverage. Thanks to it, a trader can trade for high amounts with a low margin.
As for investing in PKN Orlen, it can also be done through bonds. These are debt securities, which means, in short, that their holder becomes a creditor of the company in question. When it comes to a large redemption, the issuer of the bonds, that is, in the present case PKN Orlen, is obliged to return the borrowed amount to the bondholder, together with the interest due, which is its profit.
How to buy Orlen shares?
How to invest in Orlen? Many people are interested in Orlen shares. However, it is worth remembering that this is an investment that will bring profits rather in the long term. And how to buy Orlen shares? It is nothing difficult. However, it is necessary to have a brokerage account.
You can open an investment account at a brokerage house or at a bank, such as mBank, Alior Bank, or BNP Paribas. Beforehand, it is best to find out how the issue is related to the number of commissions, as well as additional fees. The lower the cost of making transactions and running the account, the better.
It is also worth mentioning that a brokerage account very often pays to open in the bank where the bank account is held. For regular customers, banks have a special offer, so that the investor can make transactions with a reduced commission or pay nothing for maintaining an investment account.
To buy Orlen shares, you just need to find the company and issue a buy order. In the transaction window, you need to set the parameters of the order, i.e. the size and the price limit. Before issuing the order, the investor should think carefully about how many shares he wants to buy, as a commission must be paid for each transaction. If the commission is charged for the number of transactions rather than their value, it is best to buy several shares at a time rather than several times one share at a time.
How to buy CFDs on Orlen shares?
Having already known how and where to buy Orlen shares, it is also useful to know how to invest in CFDs. These instruments allow you to make a profit even in case of slight price fluctuations, so you can invest in them on a short-term basis.
Trading in CFDs is done with the help of online trading platforms. Brokerages, as well as CFD brokers, also have access to them. And where to buy CFDs on Orlen shares? It is offered by TMS Brokers, X-Trade Brokers, as well as Plus500 broker, which is one of the most popular brokers from around the world.
To invest in this type of financial instrument, you don’t need a lot of capital, which is related to leverage. However, every investor must realize that its use is not only a chance to increase profit but also a higher risk of losing capital.
The higher the possible rate of return, the higher the risk an investor bears – this is one of the most important rules that apply to investment risk.
Every investor, before deciding to buy stocks or CFDs, should consider how much risk he or she is willing to take and whether he or she is ready for the fact that at any time he or she could lose even all the invested capital. After all, investment risk is inherent in investing and it is best to accept it before investing.
How to buy and sell PKN Orlen group shares?
If an investor has found that there is a positive outlook ahead of Orlen, he should know how to invest in Orlen and buy shares, for example, from broker XTB. Then he will be able to reap not only a capital gain – after the sale, but also participate in the life of the company. Upon request, one can attend the General Meeting of Shareholders, and participate in voting. Although arguably the individual investor will not have a significant influence on decisions, he will have information from other investors.
On the other hand, if an investor believes that he doesn’t need to be an actual co-owner of Orlen and that a capital gain is enough for him, then he should opt for CFDs on Orlen. If he forecasts that the company will certainly grow, then he can use leverage, which at best will compound his profits. However, one should be aware that leverage can also bring huge losses. Moreover, if the investor holds the position overnight, that is, after the markets close, he will have to pay an additional commission.
How to invest in Orlen?
If a prospective investor is wondering where to start, investing in Orlen shares should begin by opening an investment account. This can be done at the broker of your choice or at the bank where you maintain your bank account – it is worth checking this beforehand. To do this, you should first choose a broker. Where to buy Orlen shares?
XTB is a Polish broker that has gained popularity around the world. It offers one of the cheapest investment accounts, which allows you to trade stocks listed on the Warsaw Stock Exchange. However, Polish stocks are not everything. Among the financial instruments available with this broker, you can also find securities from foreign exchanges (also read: Buying shares of foreign companies), as well as CFDs, which allow you to invest in indices, commodities, the foreign exchange market, as well as cryptocurrencies.
It is worth knowing that the broker does not charge commissions for trading stocks and ETFs up to a monthly turnover of EUR 100,000. The account can be opened entirely online. The broker offers free professional courses on investing in stocks. The broker provides an easy-to-use application that is modern and highly rated by using investors.
Opening an investment account is free. It is also easy to get a free investment account. It is enough for the investor to make at least 1 transaction or hold any stocks in a particular year, and the broker will not charge a fee. The investor will also not incur a fee when there is no money in the account. If none of the above conditions are met, you will have to pay a fee of 10 euros every month.
eToro is a broker that allows you to invest in the most popular financial instruments. On eToro’s investment platform, investors can find CFDs in particular, which allow you to trade, leverage, and make money on changes in value, such as indices or currencies. Real stock market shares are also available, but it is worth knowing that investing in them is associated with certain restrictions.
As for the practical part, the key element of the offer is the possibility to use copy trading and social trading, as well as copy portfolios. By maintaining an investment account with eToro, one can exchange trading ideas, and observe and imitate their investment decisions.
The eToro offer is aimed at both beginner and advanced investors (also read: Stock market investments for beginners). The offer may also be of interest to those who are oriented to classic, independent trading and those who are interested in passive, long-term investing, as well as beginner players who aim to duplicate the movements of more experienced investors.
Investing in stocks is also offered by Plus500 broker. It is known worldwide and operates in more than 50 countries. It offers one of the lowest spreads, as well as a wide selection of financial instruments. You can find traditional stock exchanges, funds, and securities with it, but you can also invest in cryptocurrencies with its help.
This broker is regulated by CySEC and the FCA. The initial deposit is small. Registration is quick and simple, and the application it provides is easy to use. The level of user verification is a two-step, and support is available 24 hours a day.
How to choose a good broker?
The choice of broker matters. Do not decide to use the services of the first better broker. It is worth taking some time to choose the right broker, and this will pay off in the future with more effective investments. What should you pay attention to when choosing a broker?
An investor, when deciding to use the services of a particular broker, entrusts him with his money, so security should come first. It is best to invest in stocks with such a broker, which is supervised by competent authorities. In Poland, control of such institutions is exercised by the Financial Supervisory Commission, and in the UK by the FCA, while the Cypriot CySEC is also known worldwide. A broker that is not regulated by serious regulatory bodies should not be considered at all. Among Polish investors, of course, the Financial Supervisory Commission and Polish brokers are the most trusted.
The broker’s offer
The selected broker should, of course, offer those financial instruments that are within the investor’s circle of interest. However, in fact, the broader the offer, the better. After all, in some time the investor may become interested in other financial instruments, and it would be pointless to open a new account with another broker. Therefore, it is worthwhile beforehand to get an idea of what the offer is at the chosen broker. Some offer to invest in real stocks, and others only in CFDs.
Customer service should work flawlessly. When an investor encounters a problem, he should be able to contact the broker without any problems, preferably through several different ways. The best brokers give you the opportunity to contact them via chat, webcam, email, and phone. This way you can contact the broker at any time and get help. In the case of a foreign broker, an investor who is not fluent in English should find out whether they provide customer service in Polish.
Currently, almost every good broker offers the opportunity to invest in a demo account. You should not give up this opportunity, as you can learn a lot and get to know the mechanisms of the stock market, without risking your money. Beforehand, it is best to check whether the chosen broker offers a free demo account and for how long. Some provide a demo account for a certain period of time, while others offer the possibility of unlimited investment in a demo account.
Each broker provides a trading platform through which the investor can trade on the exchange. Depending on the broker, it can be a proprietary platform or, if the broker uses an external platform, such as Meta Trader 4. Some brokers provide two types of tools, so the investor can choose the one that suits him best, having previously checked its functions on a demo account.
An investment platform should have certain features that will help an investor make more efficient investments. First of all, it should work quickly and reliably.
When it comes to investments, sometimes fractions of seconds matter a lot, so the investment tool should not delay the investor’s movements. The trading platform should also be intuitive to use, especially for novices. The additional features it should be equipped with also matter. This will make trading more efficient and give the investor a chance to generate profits.
PKN Orlen – stocks, quotations, PKN Orlen annual report
Orlen is primarily associated with the gas station, however, it is also responsible for the exploitation of oil and natural gas. It is part of the WIG20, so this is good news for those interested in investing in the WIG20. Orlen made its debut on the Warsaw Stock Exchange in 2003.
The company’s listing is one of the more stable on the entire Warsaw Stock Exchange. Looking at the quotations in retrospect, one can see that the stock is slowly but steadily rising.
It is important to remember that PKN Orlen is one of the largest gas stations in Poland. It also operates in other European countries, such as Germany, the Czech Republic, and Lithuania, while it produces oil in Canada.
PKN Orlen stock price
The company, which has been on the Polish stock market since 2003, is an attractively priced investment item. Its shares are relatively cheap. Orlen’s share price has been moving in a northerly direction for some time. There is a noticeable increase in the shares, which have been received on the stock market for several years.
Therefore, it is unlikely that a very radical price drop will happen, and certainly not in the coming months. Analyzing the company’s long-term stock charts, as well as the listing, it is easy to see that its real success began in 2014. At that time, one can see increasingly frequent support lines, which brought the company favorable stock market results.
As for the company’s history, one can also observe a significant drop in the value of the shares at the end of 2007. This situation was related to the global financial crisis, which was triggered by the bankruptcy of a major U.S. investment bank – Lehman Brothers. Relative to 2019, there was a dividend development.
PKN Orlen – technical analysis
In order to effectively, i.e. profitably, buy stocks, one should properly use tools, and one of them is technical analysis. It allows investors and analysts to predict the future value of a stock.
The closer the technical analysis is to reality, the more effective the preparatory procedure. No one can verify market events in 15 minutes. As for short-term investments, especially day trading, the risk is higher. This is due, for example, to the fact that the company’s current quotations vary. Some people recommend buying Orlen shares, while others sell them. The overall result, which is the sum of the indicators, is neutral.
However, it is helpful to have a fundamental analysis, which proves to be effective, especially in long-term investments in such financial instruments. Given the consolidated reports that have been published by the company, as well as a number of peri-economic factors, buying Orlen shares can be very profitable for a sophisticated investor. Shares can be bought in as little as a dozen minutes. However, it is important that the transaction is well thought out.
Is it worth buying Orlen shares?
Orlen is definitely the leader of the domestic market, and one of the most valuable Polish brands. As a result, it enjoys a stable position in the market and also has few dangerous opponents, and this makes it an investment with reduced investment risk.
What’s more, the company’s plus point is that it systematically pays dividends to shareholders, and also has an affiliate program for them. Each shareholder who holds 50 shares in the company receives a discount on fuel, as well as other products from Orlen stations.
As for the stock market itself, analysts predict a continued bull market. However, with many of the company’s other investments, there is considerable risk that something could go wrong.
Arguments for buying Orlen shares:
- It is the leader of the Polish market and one of the most recognizable brands worldwide,
- It features a stable position in the market,
- It pays dividends, and offers additional affiliate programs,
- Analysts’ forecasts are positive,
- The company is making many new investments.
What is worth knowing about Orlen shares?
If an investor still wonders whether Orlen shares will bring him a profit, he should learn additional information that will perhaps dispel his doubts.
Useful information about the company
Orlen is not only a manufacturer and distributor of petroleum products, as well as petrochemicals. The company also generates and distributes heat and electricity. PKN Orlen’s combined heat and power plant is the largest in the country and is among Europe’s leaders. Moreover, the company also produces lubricants and coolants.
The shareholding structure is such that the largest shareholder of the company is the State Treasury. In addition, Nationale-Nederlanden OFE has a significant portion of the shares, as does Aviva OFE Aviva Santander. The remainder belongs to smaller pension funds and also circulates among small stock market investors.
Orlen’s plans for the coming years
According to the announced strategy for the coming years, Orlen to become a leader in sustainable energy transformation in Central and Eastern Europe.
Among the most interesting provisions are:
- At least 2.5 capacities in renewable energy sources,
- Regulating CO2 excitement by 20% when it comes to the refining and petrochemical segments,
- Increasing the number of gasoline stations to 3,500, and vehicle charging stations to 1,000,
- Payment of a dividend of at least PLN 3.5 per share.
The aforementioned assumptions are only a part. All of them can be consulted on the company’s website.
Another Polish company that is noteworthy is the second largest oil company – Lotos Group. It is engaged in the extraction and processing of oil, as well as the sale of petroleum products. The group is also a producer and supplier of diesel fuel, unleaded gasoline, aviation fuel, as well as lubricating oils and asphalt.
Next in line of business is an oil exploration and production work in the Baltic Sea. Since 2015, Lotos has been listed on the Warsaw Stock Exchange and is currently also a member of the WIG20. Lotos shares are also one of the more stable stocks of Polish companies.
The popularity ranking of companies on the WSE in 2022
It must be admitted that this year the economic climate has not been favorable for stockholders. Since the beginning of 2022 in the WIG index, the shares of only one in four participants have generated a positive return.
As for companies in the broad stock market, the highest rate of return came from Sunex shares. They provided a gain of more than 570% and set some record highs in trading. The company is one of the largest domestic developers of products for renewable energy installations.
In the second quarter of 2022, the company’s revenue compared to last year increased by 120%. The first quarter was also characterized by more than 100% growth. The results were supported by production automation, which increased the company’s sales capabilities, as well as a significant jump in the popularity of RES.
High hopes among investors were certainly raised by Bumech. It is one of the main beneficiaries of the boom when it comes to the coal market. The company doubled its revenues in the first half of 2022, and analysts augur a positive future for the company. The company also plans to pay its first dividend, which will come as a pleasant surprise to holders of its shares, as the board’s recommendation did not foresee it. It is also important that Bumech has been promoted to the mWIG40, which has resulted in even greater demand for the company’s securities. In recent months, the company’s shares have increased their value more than a dozen times, and analysts predict further increases.
This is a manufacturer of ready meals. Its 2022 quotation stands out positively against other companies. The company has rebounded solidly, but the stock continues to convince with its low valuation, and there are more arguments in favor.
Lubawa companies have recently returned the favor of investors. For a manufacturer of materials for the military, for example, this could be a big opportunity. As a result, its stock price went up by as much as several hundred percent over several sessions in late February and early March.
The paper group’s share price also rose sharply. The current very favorable price environment in the paper and pulp market is translating into huge reported results for the company, and signs of further price increases in the market are giving positive expectations. Importantly, the company has no problems passing on ever-increasing costs to end-product prices, and it has an advantage over its competitors because it is developing its own energy sources.
Among investors, high hopes were raised by ZE-PAK shares. The energy company’s stock price rebounded significantly due to a favorable market environment for conventional power generation, which created great conditions for improving margins and profits.
Torpol’s stock price has surprised very positively, resulting in record highs in 2022. The company has significant fixed assets, competence, and market share. Recent results are ahead of market expectations, and the company is generating excellent margins on its order book.
XTB’s stock has also been on the radar of investors in 2022, thanks in large part to the broker’s huge harvest from the return of high volatility in the financial markets, as well as its growing customer base.
How to invest in stocks?
Stocks are securities that are issued by either a joint-stock company or a limited joint-stock partnership. The main purpose of the company is to raise funds for its further development. People who acquire shares are called shareholders and become co-owners of the company’s assets. In addition, they acquire the right to their due share, which comes from the profit that is earned by the company. Investing in stocks involves a certain amount of risk, which is why those who plan to invest in the stock market should acquire the necessary knowledge beforehand.
Investing in stocks should be preceded by mastering at least basic knowledge of the market, as well as how it works.
The first step is to set up an investment account, which will allow you to make transactions, that is, to buy or sell securities. It is worth spending some time to choose the right entity, verify what fees you will have to pay at the beginning, check all the costs that are associated with certain products, as well as make sure that the broker has the appropriate license.
What can you invest in on the stock market?
A stock market is a place where you can buy and sell various types of securities. Stock trading is just one of the options available. Other financial instruments traded include bonds, as well as investment certificates, with leverage, options, or futures. It is worth knowing that only a good knowledge of specific financial instruments, allows you to make informed decisions, as well as to consciously build an investment portfolio.
Deciding, for example, to buy Orlen shares, the investor becomes a co-owner of the company and earns money on the increase in the price or on the dividend paid. As for bonds, the profit is the interest on the amount lent to the issuer. This is one of the safer ways to invest but is associated with lower returns for the investor. Other financial instruments allow you to make money when the prices of certain assets rise. Many of them are challenging even for advanced investors, and the risk of not leading is high.
Which stocks to invest in?
To build a good investment portfolio, in particular, you need to have a well-thought-out approach. Investing should not be random. In addition to following the quotes, and analyzing the forecasts of specialists, it is worth using the available tools on the web, to find the most interesting deals. They allow you to set the desired parameters and scour the market. It is also worth paying attention to the recommendations of brokers. The choice depends on the knowledge and skills of the investor, as well as the prevailing situation in the world.
Investing in stocks is a good way to increase your capital, but you need to approach it coolly and sensibly. Emotions are often not good advisors, and it is not easy to control them.
How to invest in Orlen? Frequently asked questions
Diversification of the investment portfolio
This is the basis of successful investing. Although many people may associate diversification with something difficult and complicated, in reality, it is simply a matter of investing in different financial instruments. This way, in a situation where one type of them starts to lose value, the investor will not lose all his money. It is worth introducing diversity into your investment portfolio to protect at least some of your capital.
Acceptance of risk
Investing requires humility and simply accepting risk. It’s worth mentally preparing yourself in advance for the fact that in the worst-case scenario, you could lose all your invested capital. Therefore, in the stock market, you should invest as much as you can lose and this loss will not affect the investor’s household budget badly.
Investing according to the chosen investment strategy
Before you start investing, you should choose a plan according to which investments will be made. You can choose an investment strategy from the cooked ones available, such as the trend-following strategy, or you can decide to create your own, using and building on the existing ones, by choosing the desired elements of the strategy. Before investing in the real stock market, it is a good idea to test your strategy on a demo account and improve it if necessary.
Investing according to knowledge
Investing in stocks, as well as in other financial instruments, requires certain knowledge. You should get it beforehand from various sources, at least on those financial instruments in which you intend to invest in the first place, such as stocks. It is best not to throw yourself in at the deep end and invest your money in financial instruments that you have no idea about. This can do more harm than good. It’s worth gradually deciding on other new investments.
Investing spare funds
The money to be invested should be “free.” What does this mean? The idea is that it should be funds that are not earmarked for current expenses or other necessary investments. One must always reckon with the fact that they can be lost, and their loss should not negatively affect the investor’s portfolio. Under no circumstances should one also take out loans to have money to invest.
Trading stocks or other financial instruments requires constant learning, and a future investor should be prepared for this. It is best to get knowledge about investing from a variety of sources. It’s worth learning from online articles, ebooks, audiobooks, and webinars, as well as opting for a course in stock market investing if it’s going to be a serious occupation and not just a hobby. It is worth keeping abreast of trends and expanding your knowledge, and this will certainly pay off in the form of more effective investments.
How to invest in Orlen? The matter is trivially simple. You just need to set up an investment account, fund it with funds in the appropriate amount and select Orlen shares and make a transaction. The whole operation of this type takes several minutes and the whole thing can be done online.
Does PKN Orlen pay dividends?
Yes, the company has paid dividends for the past years without any problems.
Where to buy PKN Orlen shares?
You can do so through a broker of your choice that has the ability to invest on the WSE.
How to buy Orlen shares?
First of all, you need to set up an investment account. Using the investment platform, you can make transactions – buy and sell shares, which is very simple and convenient.
Is it worth buying Orlen shares?
Of course, as always, opinions are divided. However, most recommend investing in PKN Orlen, given that its shares are relatively cheap.
Can anyone invest in Orlen shares?
Yes. All you need to do is open an investment account and deposit the required capital – no specialized education or knowledge is required.
How to invest in Orlen and other companies?
Investing in stocks is popular among investors, and these securities are considered relatively safe. However, with any investment there is a risk, associated with the possibility of losing even the entire capital. Therefore, it is useful to know how to reduce the risk, as it is impossible to eliminate it completely.