Predicted accounting one-offs which impact significantly on financial data for the 4 quarter 2022 presented in ORLEN Group consolidated financial report for the 4 quarters 2022

PKN ORLEN S.A. („Company”) informs that in the ORLEN Group consolidated financial report for the 4 quarters 2022, it predicts the recognition of a temporary profit on bargain purchase of PGNiG S.A. This is an accounting one-off with a significant impact on the financial data of PKN ORLEN and the ORLEN Group for the 4 quarter 2022.

In connection with the registration of the merger between PKN ORLEN and PGNiG S.A. on November 2, 2022, the profit on a bargain purchase will be recognized as a result of the temporary settlement of the transaction and it is an excess of the provisional value of the acquired net assets over the fair value of the payment made (the market price of the issued merger shares), including the effect of settlement of previously existing relationships.

The provisional value of the profit on bargain purchase will increase the EBITDA of PKN ORLEN by ca. PLN 7,9 bn and the EBITDA of ORLEN Group by ca. PLN 8,1 bn in the 4 quarter 2022.

The currently recognized values of identifiable assets and liabilities under the provisional settlement of the transaction (net assets) correspond to their book values as of the merger date. The process of the fair value measurement of the acquired net assets is at a very early stage. 

The value of the profit on bargain purchase may change within 12 months from the merger date as part of the final settlement of the merger transaction with PGNiG S.A.

PKN ORLEN will publish consolidated financial report of ORLEN Group for the 4 quarters 2022 on 24 February 2023.