PKN ORLEN S.A. („Company”) informs that it predicts that reversal of a part of historical impairments on investment in ORLEN Lietuva Group will be included in unconsolidated annual financial statement for 2019, in the estimated amount of ca. PLN 1 bn.
The estimated amount of reversal of the impairments will increase PKN ORLEN S.A. unconsolidated annual net financial result for 2019 and will have no impact on consolidated annual EBITDA of ORLEN Capital Group for 2019. That amount will be analysed during the audit of the annual financial statement of ORLEN Capital Group for 2019 and may be changed.
The reversal of a part of impairments on PKN ORLEN investment in ORLEN Lietuva Group is mainly an effect of significant decrease of the average weighted cost of capital from 10,56% to the level of 8,35%, what results in increase of rate of return on investment by 2,2 p.p.
PKN ORLEN will publish its unconsolidated and consolidated financial statements for year 2019 on 19 March 2020.
PKN ORLEN holds 100% of AB ORLEN Lietuva share capital.