(Bloomberg) -- Poland’s largest energy company slumped the most in six months as investors sought clarity from the new management team about spending after first-quarter earnings missed estimates.

State-controlled Orlen SA plummeted as much as 8.4% on Thursday, the steepest retreat since Nov. 29, which wiped out 6.7 billion zloty ($1.7 billion) in shareholder value. Orlen’s first-quarter profit undershot analyst expectations by more than 14%.  

The refiner is now reviewing its current investments and plans to present a new strategy by the end of the year, according to Chief Executive Officer Ireneusz Fafara, who was appointed to the role last month.

Fafara pledged to speed up spending on renewable energy, while at the same time signaled Orlen may cut other projects, especially in the petrochemical business. The management has also reiterated that the current policy of increasing dividends by 0.15 zloty each year still stands.

‘Lack of Clarity’

Even as Fafara underlined the importance of communication with investors and proper corporate governance during his first public appearance, he wasn’t ready to draw a clear picture of next year’s spending. 

“At the moment it’s too early to talk about it,” Fafara said at a conference in Warsaw. “We’re looking through investments and we still don’t know which ones we will continue and what effect it will have on future profits and dividends.”

The under-performance of refining despite good margins is “a little disappointing”, according to Jonathan Lamb, an analyst at Wood & Co.

“The lack of clarity on the direction of the new management is probably more important,” he said by email.

©2024 Bloomberg L.P.