We are talking about the construction of Polimery Police, an integrated complex for the production of polypropylene from propane in Police. The idea to build a propane denitrification installation at Grupa Azoty appeared in 2015, and then a polymerization installation for the obtained propylene was added. This increased the construction cost from PLN 1.7 to PLN 2.7 billion. Ultimately, however, the cost exceeded PLN 7 billion. And Grupa Azoty found itself on the brink thanks to this investment, which was supposed to enable it to break away from the chimerical fertilizer market.
Now we have another installment in the story of the ill-fated investment, which made its first commercial deliveries only in 2024. Grupa Azoty classified the loans granted to Grupa Azoty Polyolefins as impaired assets and created an impairment loss of PLN 586 million – the company announced in a statement.
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It was stated that this write-off will be included in the separate financial statements as financial costs, reducing the gross result by PLN 586 million will have no impact on EBITDA.
After reversal of deferred tax assets and provisions in the amount of PLN 3.8 million, the total impact on the net result will be PLN 589.8 million. This write-down will have no impact on the consolidated financial statements of the Azoty Group.
“At the same time, Grupa Azoty is analyzing the value of the assets of Grupa Azoty Polyolefins for a possible update in the consolidated financial statements,” the statement said.
The entire loan was a loss
It was also reported that Grupa Azoty Police created an impairment loss for loans to Grupa Azoty Polyolefins at the full book value as at December 31, 2025, i.e. for PLN 661 million. The write-off will be recognized in the separate and consolidated financial statements of the Azoty Police Group as financial costs, reducing the gross result by PLN 661 million, without affecting EBITDA.
After taking into account the termination of the deferred tax asset in the amount of PLN 3 million, the total impact on the net result will be PLN 663 million.
Additionally, Grupa Azoty Police created a partial write-off for trade receivables in the amount of PLN 119 million, determined as at the arrangement date, i.e. November 28, 2025. Grupa Azoty Polyolefins is in restructuring because it was unable to settle its liabilities and lost liquidity.
This write-down will be recognized in the separate and consolidated financial statements of Grupa Azoty Police and will affect EBITDA. If it is used, amounts deductible from income tax will be generated in the amount of PLN 21 million, and the total impact of the write-off on receivables and deferred tax assets will amount to PLN 98 million.
It was informed that due to the ongoing audit of financial statements for 2025 and ongoing restructuring proceedings, the final value of write-offs may still change.
