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Prepayments for oil “were not refunded.” Orlen is counting the loss

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Due to the loss by Orlen Trading Switzerland (OTS) of PLN 1.6 billion in prepayments for undelivered crude oil, Orlen expects to adjust its annual results for 2023 by this amount – the company announced on Wednesday.

As stated, the adjustment to the subsidiary's result results mainly from the analysis of its ability to recover the funds it paid as prepayments for the purchase of crude oil and petroleum products.

“Due to the lack of deliveries of crude oil and petroleum products within the deadlines specified in the relevant contracts, the subsidiary (OTS – ed.) requested the return of prepayments. The prepayments were not returned within the stipulated deadlines, and the possibility of recovering the prepayments due was deemed unlikely by the subsidiary. Based on the information obtained, the subsidiary assessed that the above event requires an adjustment to its financial result for 2023,” it was written.

“In connection with the information received, Orlen SA expects to include in the consolidated financial statements of the Orlen Group for 2023 in the item of other operating costs an additional amount of approximately minus PLN 1.6 billion, mainly as a result of writing off assets due to advance payments for deliveries” – it was reported .

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Orlen's standalone and consolidated report for 2023 will be published on April 25, 2024.

Tusk: Poland will be exposed to problems due to the activities of the Swiss company Orlen

– There are justified fears that due to the activities of the Swiss company Orlen, Poland will be exposed to serious problems – said Prime Minister Donald Tusk at the beginning of March.

– Despite warnings addressed to members of Mateusz Morawiecki's government regarding the nature, staff and activities of this company, no effective intervention was decided – Tusk said at a press conference.

– There are justified fears that due to the activities of this company, Poland will be exposed to very serious problems – he added. – The concerns of those who warned the authorities about the activities and nature of this company will be the subject of serious analyzes and serious actions in the coming days – the head of government also said, without providing any details.

Orlen Trading Switzerland

Orlen Trading Switzerland trades in refined petroleum products and petrochemical products. According to the information posted on the company's website, it supplies products from five Orlen refineries, but also from other leading global suppliers – both private and state-owned – it was noted. According to the information on the company's website, its two-person management board has been in office in its current composition since February 27, 2024.

The Orlen Group is the largest Polish company, a concern that has refineries in Poland, the Czech Republic and Lithuania, as well as a network of gas stations in these countries, as well as in Germany, Slovakia, Hungary and Austria. It has an oil and gas extraction segment, a petrochemical segment and an energy segment, including renewable energy sources.

Main photo source: MOZCO Mateusz Szymanski / Shutterstock

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