Current reports
Current report no. 6/2014
Information regarding the intention to create, in the consolidated financial statement of the ZE PAK Group for the year 2013, the provisions relating to CO2 emission allowances
Legal basis:
Art. 56 section 1 point 1 of the Public Offering Act - Confidential information
Contents of the report:
Zespół Elektrowni „Pątnów-Adamów-Konin” S.A. ("The Company") hereby informs the public of its intention to create provisions relating to CO2 emission allowances and their estimated impact on the consolidated results of the ZE PAK Group for the year 2013.
Following the consultations with the financial auditor, based on the principle of prudence, the Management Board decided to present economic events associated with the necessary purchase of CO2 allowances by creating an appropriate provision in the balance sheet. The provision is created in the core operating activities in the amount constituting the difference between the value of emitted in the conventional energy production process amount of CO2 and the value held by the Group at the balance sheet date of free CO2 allowances, held in the Group's accounts in the registry of the National Centre for Emissions Management (KOBiZE). The Group has purchased the CO2 emission allowances being the subject of the provisions, and intends to present them for redemption. At the same time the Group, being entitled to receive free CO2 emission allowances on the basis of Directive 2003/87/EC of the European Parliament ("derogation allowances"), filed a motion for granting derogation allowances in the amount corresponding to the degree of expenditure incurred on investments reported to the National Investment Program. However, due to reasons beyond the Company's control until 31 December 2013 they had not been assigned.
In the opinion of the Management Board, the creation of the provisions will have a negative impact on the consolidated results of the ZE PAK Group for the year 2013, i.e., the gross profit will decrease by approximately PLN 150.6 million, and the net result will decrease by around PLN 121.5 million.
The Company reserves that the financial statement of the ZE PAK Group is being verified by the financial auditor, therefore, the above amounts are not final and are subject to change.
Signatures of persons representing the company:
Katarzyna Muszkat – President of the Management Board
Anna Striżyk – Vice President of the Management Board