Inspection in Rafineria Trzebinia

PKN ORLEN S.A. (“PKN ORLEN”), Central Europe’s largest downstream oil company, announces that Rafineria Trzebinia S.A. (“Rafineria Trzebinia”), which is 77.06% owned by PKN ORLEN, following an inspection has been charged by the Polish Tax Authorities (PTA) with underpaying excise tax, underpaying goods and services tax and fiscal impropriety which together with interest charges amount to PLN 113.6m.

The PTA has questioned the excise allowance rate relating to Rafineria Trzebinia's production of diesel oil containing a component derived from the processing of used oils. The Management Board of Rafineria Trzebinia is currently reviewing the charges and has lodged an appeal to the Fiscal Office in Krakow and has also applied to stop the proceedings. There are similar proceedings against Rafineria Nafty Jedlicze S.A. and it is currently anticipated that these will be resolved in the company's favour.