Decision to stop the project Olefins III complex development under the current scope.

ORLEN S.A. („Company”) announces that on 11 December 2024 the Company’s Supervisory Board approved Company’s Management Board decision from 10 December 2024 to stop the Olefins III complex development under the current scope.

Continuation of Olefins III complex development in the current scope and scale (described in the regulatory announcements no 26/2021 and 27/2021 as of 24 May 2021, no 34/2021 as of 22 June 2021 and no 30/2023 as of 29 June 2023) is not profitable. It results among the others from:

(1) inadequately defined scope of the investment, i.e. not all required OSBL infrastructure have been planned,

(2) underestimated financing costs and time necessary for realization,

(3) underestimated necessary CAPEX, which would increase total project costs up to PLN 45-51 bn.

At the end of 3 quarter 2024, already spent CAPEX for Olefins III complex development amounted to PLN 12.6 bn.

Further works will be conducted within “New Petrochemicals” project in the optimized scope rationalizing required CAPEX.

The decision of the Company's corporate bodies assumes construction of ethylene unit with an annual production capacity up to 740 kt (“Project”), which will be commissioned no earlier than in 2030.

According to current analysis held by the Management Board optimized CAPEX of redefined Project is estimated at ca. PLN 34.0 bn, including ca. PLN 6 bn of financing costs.

Incremental feasibility of Project EBITDA generation in 2030 is currently estimated at ca. PLN 550-800 m yearly, depending on capacity utilization.

Currently, the Company will concentrate its Project related actions on talks with contractors of the core olefin unit (ISBL) and additional infrastructure (OSBL) to ensure realization of the new schedules. At the same time, the Company informs that some relevant design and technical problems of ISBL unit were identified and recognized. Solving them is impacting the Project realization.

The Company will conduct negotiations with its’ business partners involved in the Project.

By 30 September 2025, the Company’s Management Board will prepare and publish the overall budget of the Project and its new material and financial schedule in the optimized scope together with the required OSBL infrastructure.

Today's decision of the Company's corporate bodies is aimed at minimizing value damage that the Company may have faced should the Project be continued in its current scope.

The decision of the Company’s Management Board described above, made on 10 December 2024, has been identified as an inside information, publication of which has been delayed by the moment the decision of the Company’s Supervisory Board is made, in accordance to Art. 17 item 4 of the Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC.