Hyundai Engineering Co., Ltd., the General Contractor for the Polimery Police project, has submitted two proposed amendments to the EPC contract. Notably, Grupa Azoty Polyolefins is currently negotiating with the General Contractor regarding the final settlement of the Polimery Police project, aiming to reach an agreement on mutual claims. As part of these negotiations, Grupa Azoty Polyolefins informed the General Contractor of its position and evaluation concerning the previous amendment proposals submitted in 2023 and February 2024. Based on the documents and information provided, Grupa Azoty Polyolefins has largely found no grounds to accommodate the contractor’s claims from 2023 and February 2024.

Grupa Azoty is currently analysing non-compete agreements signed in recent years that have been unfavourable for particular companies within the Group and have caused harm to these entities. The first such complaint, concerning the signing of a non-compete agreement after the termination of employment, has been filed by Grupa Azoty Puławy with the District Prosecutor's Office in Puławy.

Grupa Azoty Polyolefins has extended the terms of the Stabilization Agreement, originally dated December 15, 2023, and later amended, concerning the financing of the Polimery Police project. The agreed-upon financing conditions provided by financial institutions will now remain in effect until September 30 of this year.

In the first half of 2024, Grupa Azoty generated consolidated sales revenues of PLN 6,743 million, with an EBITDA result of minus PLN 179 million and an EBITDA margin of minus 2.7%. This represents an improvement of nearly PLN 830 million compared to the same period last year. The net loss for the first half of this year amounted to PLN 748 million, compared to a loss of PLN 1,098 billion in the first half of 2023.

The management boards of Grupa Azoty S.A., Grupa Azoty Police, and Grupa Azoty Kędzierzyn have signed agreements with Trade Union Organizations to suspend selected cost-intensive provisions of their Collective Bargaining Agreements (ZUZP). This marks another step in the cost restructuring process that has been underway since spring this year, in response to the financial difficulties Grupa Azoty has faced since the second half of 2022.

Ammonia is one of the key raw materials used in Grupa Azoty's production processes, particularly in the fertilizer segment. It is also highly cost-intensive—both in terms of production and emissions. Importantly, producing 1 ton of ammonia requires at least 950 cubic meters of natural gas. Given the role the cost of gas plays in fertilizer production, producers are increasingly opting to cease the expensive gas-based production of ammonia in favor of importing the ready-made intermediate. Striving for cost optimization, developing a new business area using the company’s own port infrastructure, and reducing emissions are the primary reasons Grupa Azoty is interested in importing ammonia. The company plans to begin these purchases after completing a routine overhaul of the unloading system, starting in October this year.