Predicted accounting one-off which impacts significantly financial data for 2023 presented in financial statements for 2023

ORLEN S.A. (“Company”) informs that it conducted tests for impairment of ORLEN Lietuva Group's assets.

As a result of these activities, the Company predicts the recognition of an impairment of fixed assets of ORLEN Lietuva Group with a total value of ca. PLN (-) 0,1 billion in the consolidated financial statement for 2023, mainly in the Refining segment. The impairment of the fixed assets results mainly from the increase of the fixed assets value which provided a reference point for impairment tests. ORLEN Lietuva predicts an increase of value of the discounted future cash flows, resulting from the improvement of the macroeconomic conditions. However, that increase is lower than the raise of value of the fixed assets connected with investments being currently realized by ORLEN Lietuva, what directly affected the abovementioned impairment of assets.

 

At the same time in the separate financial statement for 2023, the Company predicts to include the recognition of reversal of an impairment of shares in ORLEN Lietuva in the amount of ca. PLN 1,8 billion. The reversal of impairment of shares results from the good operating results of ORLEN Lietuva in 2023, what affected the significant reduction of its net debt at the end of 2023 and results from the future cash flows that ORLEN Lietuva plans to obtain within the development investments, including biofuels.

 

The above accounting one-offs have a significant impact on the financial data for 2023.

 

The abovementioned one-offs are currently being audited by the auditor and may be subject to change.

 

At the same time, the Company informs that analyzes of the value of other assets of the ORLEN Group are underway. In case any impairments or updating reversals, which impact significantly the financial data for 2023, become probable, the Company will publish regulatory announcement with that information.

 

ORLEN S.A. will publish its separate and consolidated financial statements for year 2023 on 25 April 2024.

The abovementioned one-offs are currently being audited by the auditor and may be subject to change.

 

At the same time, the Company informs that analyzes of the value of other assets of the ORLEN Group are underway. In case any impairments or updating reversals, which impact significantly the financial data for 2023, become probable, the Company will publish regulatory announcement with that information.

 

ORLEN S.A. will publish its separate and consolidated financial statements for year 2023 on 25 April 2024.