PKN Orlen S.A.

Regulatory Filings • Apr 12, 2024

Report Content Predicted accounting one-off which impact significantly financial datafor 2023 presented in financial statements for 2023Regulatoryannouncement no 25/2024 dated 12 April 2024ORLEN S.A.("Company") informs that it predicts to include an adjustment to thefinancial data for 2023 in its separate financial statement.Withreference to the regulatory announcement no 23/2024 dated 10 April 2024,ORLEN informs that in connection with the information received about theadjustment of the financial result in ORLEN Trading Switzerland GmbHwith its registered office in Baar, Switzerland (_quot;Subsidiary_quot;) resultingfrom the write-down of the asset for prepayments made for deliveries inthe amount of PLN (-) 1,6 bn, ORLEN has reanalyzed the impact of theabovementioned event on its separate financial result. The analysysconcerned in particular the items of assets of the Subsidiary, inparticular the value of the investment in the Subsidiary and financialassets due from the Subsidiary within the cash pool, for theirimpairment as at the balance sheet date.In view of the lowprobability of recovery by the Subsidiary of cash that the Subsidiarypaid as prepayments for the purchase of crude oil and refining products,ORLEN assessed that its cash pool receivables from the Subsidiary in theamount of PLN (-) 1,3 bn were impaired at the end of the reportingperiod due to credit risk. As a result ORLEN recognized a loss onimpairment of financial assets in the amount of PLN (-) 1.3 billion inits separate financial statement.The difference in the amount ofPLN 0,3 bn between the impairment recognized in the consolidatedfinancial statement of ORLEN Group in the amount of PLN (-) 1,6 bn andimpairment recognized in the separate financial statement of ORLEN inthe amount of PLN (-) 1,3 bn results from the fact that the Subsidiaryholds net current assets (among others: cash, inventories and currentreceivables) that the Subsidiary may use to cover the remaining cashpool liabilities towards ORLEN.Recognition of the abovementionedadjustment will not affect separate ORLEN's EBITDA for 2023, but willaffect ORLEN's net result for 2023 by reducing it in total by PLN (-)1.3 billion.The abovementioned event is currently being auditedby the auditor and may be subject to change.At the same time,the Company informs that analyzes of the value of other assets of theORLEN 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.ORLENS.A. will publish its separate and consolidated financial statements foryear 2023 on 25 April 2024.