Grupa Azoty S.A. has submitted a criminal complaint to the prosecutor’s office, alleging misconduct related to sponsorship and advertising agreements. The complaint refers to potential criminal offenses involving abuse of authority and failure to exercise proper oversight. The agreements in question were signed by Grupa Azoty S.A. despite a suspension of non-essential expenditures due to the company’s difficult financial situation, and in violation of internal procedures and legal regulations. These actions resulted in financial losses exceeding PLN 7.5 million in 2023.

Grupa Azoty has signed agreements with 13 financial institutions, under which the institutions have agreed to waive certain conditions of the financing agreements for Grupa Azoty S.A. and selected other companies within the Grupa Azoty Group. As a result of these agreements, the lenders have granted a waiver on the net debt/EBITDA ratio requirement for the period ending in June 2024. Simultaneously, an extension agreement signed in July 2024 ensures that financing limits remain available through October 11, 2024.

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.