Orlen has announced it will record impairment charges totaling 1.9 billion zloty in its consolidated financial statements for the second quarter of 2026, with the bulk of the write-down linked to the Nova Chemia project. The company revealed the move after conducting asset impairment tests.
The write-downs are mainly related to capital expenditures incurred on the Nova Chemia initiative, which has been under development since 2021. Nova Chemia replaced the ill-fated Olefiny III project from the Daniel Obajtek era, which became a symbol of the challenges surrounding Orlen’s largest petrochemical investment. The new complex is already at a very advanced stage of construction.
In its standalone financial report for the same quarter, Orlen expects to book 1.6 billion zloty in impairment charges on the assets of ORLEN CGU Petrochemia, a separate cash-generating unit.
Nova Chemia – a project under scrutiny
The Nova Chemia project has been closely watched by investors and industry analysts alike. The original Olefins III megaproject was plagued by cost overruns and delays, prompting Orlen to scrap it and launch a completely redesigned investment. The company has stressed that the new facility is now nearing completion, and the write-down reflects updated cost estimates and market conditions. Journalists from WNP have visited the construction site and reported firsthand on the scale of the undertaking.
Despite the impairment charges, Orlen has shown financial resilience. In early July, it successfully issued corporate bonds with a total nominal value of 750 million euros, attracting demand of over 1.6 billion euros from qualified investors. The proceeds will be directed toward green investments, aligning with the group’s energy transition strategy.
Strong earnings amid write-downs
The impairment comes against a backdrop of robust financial performance. Orlen’s net profit in the first quarter of 2026 reached over 8.1 billion zloty, an increase of more than 3.9 billion zloty year-on-year. Revenue for the period stood at 75.8 billion zloty, while EBITDA LIFO hit 14.1 billion zloty. The group’s ability to generate strong cash flows provides a buffer against the one-off charges.
Investors will be watching the Q2 results closely to assess the impact of the write-downs on Orlen’s overall balance sheet. The company’s management has not yet commented on whether further impairments are expected in the second half of the year.
Źródło: WNP.PL, Fot. Shutterstock
