Estimations of selected financial data of ORLEN Group for the 3rd quarter 2024 and one-offs which impact significantly these data

ORLEN S.A. (“Company”, “ORLEN Group”) informs that as part of its work on the interim report for the 3rd quarter of 2024, it prepared estimations of selected financial data of ORLEN Group for the 3rd quarter 2024:

·       EBITDA is estimated at ca. PLN 4,958 m,

·       EBITDA LIFO (excluding the impairment of assets) is estimated at ca. PLN 8,808 m, in comparison to PLN 10,258 m in the 3rd quarter 2023,

·       The net impairment of fixed assets is estimated at ca. PLN (-) 3,526 m,

·       The impact of regulations on EBITDA LIFO is estimated at ca. PLN 678 m.

The Company informs that it has identified premises and conducted tests for impairment of assets. As a result, the Company predicts the recognition of net impairment of fixed assets of ORLEN Group in the amount of approximately PLN (-) 3,526 m, in the consolidated financial statement for the 3rd quarter 2024. Test results for impairments of ORLEN Lietuva Group's assets and of production assets in petrochemical segment of ORLEN S.A. will have the greatest impact on the financial data for 3rd quarter 2024.

Impairment of fixed assets of ORLEN Lietuva Group amounted to ca. PLN (-) 2,421 m. It results mainly from the change in the predicted economic and regulatory conditions, which, due to  delays in realization and higher investment expenditures on bottom of the barrel unit in ORLEN Lietuva, causes a loss in efficiency of that investment.

Impairment of fixed assets of the petrochemical segment in ORLEN S.A. amounted to ca. PLN (-) 912 m. It results mainly from persistently difficult economic conditions on the petrochemical market and from investment expenditures incurred in 3rd quarter 2024 for building of Olefins III complex, due to which, according to the current estimates, the assets that are to be created will not generate positive cash flows in the future.

At the same time in the separate financial statement for 3rd quarter 2024, the Company predicts to include impairment of shares in ORLEN Lietuva in the amount of ca. PLN (-) 4,005 m. Impairment of shares is connected with the abovementioned reasons for impairment tests of fixed assets of ORLEN Lietuva Group. These factors affect the predicted lack of future positive cash flows planned by ORLEN Lietuva.

Moreover the Company predicts to include in the separate financial statement for 3rd quarter 2024, similarly like in the consolidated report, impairment of fixed assets of petrochemical segment in the amount of PLN (-) 912 m.

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 works on unconsolidated and consolidated report of ORLEN Group for the 3rd quarter 2024, which the Company will publish on 13 November 2024 are still underway. Therefore, the estimations of selected financial data of ORLEN Group for the 3rd quarter 2024 presented above are subject to change in comparison to the financial data that will be included in the final version of the interim report.