Current reports
Current report no. 17/2019
Update of the intention to recognize impairment write-downs on assets in the financial statements for 2018 and information on other one-off events and estimated financial results for 2018
Legal basis:
Art. 17 item 1 MAR – inside information
Contents of the report:
Zespół Elektrowni Pątnów-Adamów-Konin SA („Company”), with reference to the current report no. 7/2019 dated March 8, 2019, informs that during the verification works performed by the auditing company regarding tests for impairment of assets, there was a need to increase impairment write-downs on assets in relation to the volumes reported by the Company in the above mentioned report.
The increase in the value of write-offs concerns two centres generating independent cash flows ("CGU"), i.e.: CGU PAK KWB Konin SA and CGU PAK KWB Adamów SA. The main reason was the change in the recognition of reserves and assets related to mining operations.
Currently, 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 367 million. However, with reference to the standalone statement of ZE PAK SA (in accordance with Act of Accounting), the result of the impairment test of CGU PAK KWB Adamów SA assets justifies the need to write off PLN 79 million due to the impairment of PAK KWB Adamów SA shares. An impairment write-down, in case of consolidated and standalone financial statements as well, will not affect the amount of EBITDA.
In addition, during the audit of the reports, the necessity to include several other one-off events that affect the financial result for 2018 was identified:
- update of the value of inventories (spare parts),
- revaluation of fixed assets under construction,
- updating the reserve for the reclamation of furnace waste landfills,
- creation of a provision related to the potential need to return free CO2 emission allowances, previously granted in relation to the incurred outlays for the implementation of investments reported to the National Investment Plan, the implementation of which may be at risk.
The sum of the above events will decrease the EBITDA result of ZE PAK SA and the consolidated EBITDA result of the Capital Group by approximately PLN 41 million.
This report also publishes the estimated results for 2018:
1. EBITDA of ZE PAK SA - approximately PLN (-99) million
2. Consolidated EBITDA of ZE PAK SA Capital Group - approximately PLN 90 million
3. Net financial result of ZE PAK SA - approximately PLN (-65) million
4. Net financial result of ZE PAK SA Capital Group - approximately PLN (-464) million
Signatures of persons representing the Company:
Henryk Sobierajski – Member of the Supervisory Board of ZE PAK SA delegated to temporarily perform the duties of the President of the Management Board
Zygmunt Artwik – Vice President of the Management Board