Current reports
Current report no. 5/2020
Information on the intention to recognize one-off events in the financial statements for 2019 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 and NAS 4, publishes information on the need to recognize impairment write-downs on assets.
In the analysis process, the greatest impact on its result was:
1. The use of a higher discount rate at the end of 2019 compared to tests carried out in earlier periods,
2. Shortening the expected lifetime of a 474MW power unit at Pątnów II power plant.
In the consolidated financial statements prepared in accordance with International Financial Reporting Standards, the results of impairment tests of assets of ZE PAK SA Capital Group indicate impairment in the amount of PLN 615 million.
In addition, due to the outdated design documentation and the loss of validity of the environmental decision and building permit regarding the construction project of the gas-steam block at Konin power plant, the Company decided to create an impairment write-down in the amount of PLN 16 million.
Total results of impairment tests of assets of ZE PAK SA Capital Group and an impairment write down will reduce the consolidated net financial result, calculated according to International Financial Reporting Standards, by PLN 540 million. Both titles will not affect the value of the consolidated EBITDA result.
With reference to the standalone statement of ZE PAK SA, prepared in accordance with the Act of Accounting, the result of the asset impairment test and the above-mentioned impairment write-down on the gas and steam project will cause a total reduction of the net financial result by PLN 125 million. As in the case of the consolidated report, both items will not affect the value of the individual EBITDA result of ZE PAK SA.
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 expected estimated consolidated EBITDA result for 2019 will amount to PLN 393 million. As a result of the events described above, the expected estimated consolidated net loss for 2019 will be PLN 446 million. However, without taking into account the one-off events described above, ZE PAK SA Group would end 2019 with a net profit of PLN 94 million.
The expected estimated result of ZE PAK SA at the EBITDA level for 2019 will amount to PLN 122 million. As a result of the events described above, the expected estimated net loss of ZE PAK SA for 2019 will be PLN 46 million. However, without taking into account the above-mentioned one-off events, ZE PAK SA would end 2019 with a net profit of PLN 79 million.
The company would also like to inform that impairment write-offs relate to "coal" operations and the tests themselves did not include projects that the Group intends to implement in the area of renewable energy sources.
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:
Paweł Lisowski – Vice President of the Management Board
Maciej Nietopiel – Vice President of the Management Board