Polski Koncern Naftowy ORLEN : Reversal of a part of historical impairments of assets in consolidated financial statement for 4 quarter 2018.

PKN ORLEN S.A. ('Company') informs that it predicts that net reversal of a part of historical impairments of assets of Unipetrol Group will be included in consolidated financial statement for 4 quarter 2018, in the estimated amount of PLN 0,8 bn.

The estimated amount of net reversal will increase ORLEN Capital Group consolidated EBITDA. That amount will be analysed during the audit of the annual financial statement of ORLEN Capital Group for 2018 and may be changed.

The net reversal of a part of impairments of assets, mentioned above, is mainly a result of approved on 20 December 2018 the ORLEN Group strategy update for 2019-2022 as well as accepted as its part middle-term Plan for the years 2019-2022, based on updated macro assumptions, that constitutes an indication for the Company to verify recoverable value of its assets, according to IFRS 36.

The Company also informs that it will make impairments of its assets in ORLEN Upstream Group and will present the results of this works in the annual unconsolidated financial statement of PKN ORLEN and in consolidated financial statement of ORLEN Capital Group for 2018. The Company is now expecting a report, which is prepared, according to Canadian market standards, by an independent company, and that will allow to estimate the fair value of exploration and extraction of mineral resources in Canada. The effects of that assessments may have a non-cash impact on unconsolidated net result of PKN ORLEN and for ORLEN Capital Group consolidated EBITDA for 2018.

PKN ORLEN will publish its consolidated financial statements for 4 quarter 2018 on 24 January 2019.

See also: regulatory announcement no 109/2018 dated 20 December 2018, regulatory announcement no 108/2018 dated 20 December 2018.

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