PKN Orlen S.A.

Earnings Release • Apr 10, 2024

Report Content Predicted accounting one-off which impact significantly financial datafor 2023 presented in financial statements for 2023Regulatoryannouncement no 23/2024 dated 10 April 2024ORLEN S.A.("Company") informs that it predicts to include an adjustment to thefinancial data for 2023 in its consolidated financial statements.ORLENwas informed by ORLEN Trading Switzerland GmbH with its registeredoffice in Baar, Switzerland (_quot;Subsidiary_quot;) about the identification ofan event that resulted in a decision to adjust its financial result for2023.The adjustment results mainly from the analysis regarding thepossibility of recovery by the Subsidiary of cash that the Subsidiarypaid as prepayments for purchase of crude oil and refining products. Inlack of deliveries of crude oil and refining products in accordance withthe deadline provided in the certain agreements, the Subsidiaryrequested reimbursement of the prepayments. The prepayments has not beenreturned in the deadlines and Subsidiary assessed the possibility torecover the owed funds as unlikely. On the base of the obtainedinformation the Subsidiary assessed that the abovementioned eventrequires adjustment of its financial result for 2023.Inconnection of the information received, ORLEN expects to recognize anadditional amount of ca. PLN (-)1.6 billion in other operating expensesin the ORLEN Group's consolidated financial statements for 2023, mainlyas a result of the write-down of the asset for prepayments made fordeliveries.Recognition of the adjustment will reduce ORLEN Group'sEBITDA for 2023 and ORLEN Group's net result for 2023.Theabovementioned adjustment will not affect the financial data presentedin ORLEN's separate financial statement for 2023.Theabovementioned event is currently being audited by the auditor and maybe subject to change.At the same time, the Company informs thatanalyzes of the value of other assets of the ORLEN Group are underway.In case any impairments or updating reversals, which impactsignificantly the financial data for 2023, become probable, the Companywill publish regulatory announcement with that information.ORLENS.A. will publish its separate and consolidated financial statements foryear 2023 on 25 April 2024.