Grupa Azoty shares set for biggest one-day fall after polymer project blow

Shares in Polish chemicals firm Grupa Azoty ATT were on track for their biggest ever one-day decline on Tuesday after the company said that the country's top oil refiner Orlen would not buy more shares in its polymer production project.

Azoty, which is struggling with losses at its core fertiliser business, and Orlen have been discussing options for the chemical maker's polymers business GA Polyolefins, in which the refiner already owns a 17.3% stake, since 2024.

"During negotiations, Orlen informed us that it was not interested in acquiring all or part of the shares in GA Polyolefins," Grupa Azoty Chief Executive Andrzej Skolmowski said in a statement late on Monday.

Skolmowski added, however, that Orlen had said it is "ready to engage in further discussions to develop a method for utilising GA Polyolefins' assets."

The parties extended the deadline for talks on the future of the project until the end of July, Azoty said.

At 1135 GMT, Grupa Azoty shares were down 14%, on track for their worst ever day.

"Grupa Azoty is in a dramatic situation," Trigon analyst Michal Kozak said in a note. "The failure to purchase the project by Orlen should result in negotiations with banks on a debt haircut."

Grupa Azoty declined to comment beyond its statement on Monday.