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

ORLEN S.A. (“Company”) informs that it predicts to include an adjustment to the financial data for 2023 in its consolidated financial statements.

 

ORLEN was informed by ORLEN Trading Switzerland GmbH with its registered office in Baar, Switzerland ("Subsidiary") about the identification of an event that resulted in a decision to adjust its financial result for 2023.

The adjustment results mainly from the analysis regarding the possibility of recovery by the Subsidiary of cash that the Subsidiary paid as prepayments for purchase of crude oil and refining products. In lack of deliveries of crude oil and refining products in accordance with the deadline provided in the certain agreements, the Subsidiary requested reimbursement of the prepayments. The prepayments has not been returned in the deadlines and Subsidiary assessed the possibility to recover the owed funds as unlikely. On the base of the obtained information the Subsidiary assessed that the abovementioned event requires adjustment of its financial result for 2023.

 

In connection of the information received, ORLEN expects to recognize an additional amount of ca. PLN (-)1.6 billion in other operating expenses in the ORLEN Group's consolidated financial statements for 2023, mainly as a result of the write-down of the asset for prepayments made for deliveries. 

Recognition of the adjustment will reduce ORLEN Group's EBITDA for 2023 and ORLEN Group's net result for 2023.

 

The abovementioned adjustment will not affect the financial data presented in ORLEN’s separate financial statement for 2023.

 

The abovementioned event is 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.