Predicted impairments on assets in ORLEN Group financial statement for 1 quarter 2020

The Company predicts also the impairments on inventories to net realizable value of ca. PLN -2 bn will be included in consolidated financial statement for 1 quarter 2020. The necessity to recognize the impairments is mainly due to falling oil prices and product sales prices. The estimated amount will decrease consolidated EBITDA of ORLEN Group for 1 quarter 2020.

The Company predicts that the impairments on investments in ORLEN Lietuva Group and ORLEN Upstream Group will be included in unconsolidated financial statement for 1 quarter 2020, in the amount of ca. PLN -2 bn. The estimated amount of the impairments results from the update of forecast for raw materials prices, sales volumes, margins on products and update on discount rate. The estimated amount will reduce unconsolidated EBITDA of PKN ORLEN for 1 quarter 2020.

The Company predicts also the impairments on inventories to net realizable value of ca. PLN -1 bn will be included in unconsolidated financial statement for 1 quarter 2020. The necessity to recognize the impairments is mainly due to falling oil prices and product sales prices. The estimated amount will decrease unconsolidated EBITDA of PKN ORLEN for 1 quarter 2020.

PKN ORLEN will publish its unconsolidated and consolidated financial statements for 1 quarter 2020 on 6 May 2020.

PKN ORLEN holds 100% of AB ORLEN Lietuva share capital. PKN ORLEN holds 100% of ORLEN Upstream Sp. z o.o. share capital. 

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