Predicted accounting one-off which impact 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 separate financial statement.

 

With reference to the regulatory announcement no 23/2024 dated 10 April 2024, ORLEN informs that in connection with the information received about the adjustment of the financial result in ORLEN Trading Switzerland GmbH with its registered office in Baar, Switzerland (“Subsidiary”) resulting from the write-down of the asset for prepayments made for deliveries in the amount of PLN (-) 1,6 bn, ORLEN has reanalyzed the impact of the abovementioned event on its separate financial result. The analysys concerned in particular the items of assets of the Subsidiary, in particular the value of the investment in the Subsidiary and financial assets due from the Subsidiary within the cash pool, for their impairment as at the balance sheet date.

 

In view of the low probability of recovery by the Subsidiary of cash that the Subsidiary paid as prepayments for the purchase of crude oil and refining products, ORLEN assessed that its cash pool receivables from the Subsidiary in the amount of PLN (-) 1,3 bn were impaired at the end of the reporting period due to credit risk. As a result ORLEN recognized a loss on impairment of financial assets in the amount of PLN (-) 1.3 billion in its separate financial statement.

 

The difference in the amount of PLN 0,3 bn between the impairment recognized in the consolidated financial statement of ORLEN Group in the amount of PLN (-) 1,6 bn and impairment recognized in the separate financial statement of ORLEN in the amount of PLN (-) 1,3 bn results from the fact that the Subsidiary holds net current assets (among others: cash, inventories and current receivables) that the Subsidiary may use to cover the remaining cash pool liabilities towards ORLEN.

 

Recognition of the abovementioned adjustment will not affect separate ORLEN's EBITDA for 2023, but will affect ORLEN's net result for 2023 by reducing it in total by PLN (-) 1.3 billion.

 

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.