Current reports
Current report no. 7/2019
Information on the intention to recognize impairment write-downs on assets in the financial statements for 2018 and their estimated impact on financial results
Legal basis:
Art. 17 item 1 MAR – inside information
Contents of the report:
Zespół Elektrowni "Pątnów-Adamów-Konin" SA ("Company"), in connection with the completion of works on impairment tests of assets in accordance with the requirements of IAS 36, publishes information on the need to recognize impairment write-downs on assets related to the following centres generating independent cash flows ("CGU"): CGU Elektrownia Pątnów II Sp. z o.o. and CGU PAK Kopalnia Węgla Brunatnego Adamów SA ("PAK KWB Adamów SA").
In the analysis process, the greatest impact on the results was taken into account changes in the recoverable amount of fixed assets related to the EU internal energy market arrangements, which for generation units that do not meet specific CO2 emission criteria, assume the elimination of support in the form of payments from power market mechanism after July 1, 2025.
In the consolidated financial statements prepared in accordance with International Financial Reporting Standards, the results of impairment tests of property, plant and equipment of ZE PAK SA Capital Group indicate impairment in the amount of PLN 220 million, which will reduce the consolidated net financial result by this amount.
All of the impairment relates to the impairment of property, plant and equipment under CGU Elektrownia Pątnów II Sp. z o.o. The impairment write-down will not affect the consolidated EBITDA result.
With reference to the standalone statement of ZE PAK SA, the result of the impairment test of CGU PAK KWB Adamów SA assets justifies the need to write off PLN 77 million due to the impairment of shares in PAK KWB Adamów SA. An impairment write-down in the indicated amount will decrease the unit net financial result of ZE PAK SA. The impairment write-down will not affect the unit EBITDA result of ZE PAK SA. The impairment write-down will not affect mining operations.
Simultaneously, the Company informs that the operations mentioned in the report are non-cash, accounting and do not affect the liquidity situation of the Company and the Group.
The company reserves that the consolidated and standalone statements are being reviewed by a certified auditor, therefore the above amounts may change.
Signatures of persons representing the Company:
Marcin Ginel – Vice President acting President of the Management Board
Paweł Markowski – Vice President of the Management Board