Current reports
Current report no. 6/2016
The information about the intended recognition of impairment write-downs against the value of tangible assets in the financial statements of 2015 and the influence of other one-off events of a non-monetary nature on the financial results of 2015
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”, “ZE PAK S.A.”), in relation to the completion of work connected with the value impairment tests of assets according to the IAS 36 requirements, hereby informs the public of its decision to make the impairment write-downs against the value of tangible fixed assets in the following units generating independent cash flows (”CGU”): CGU ZE PAK S.A. and CGU PAK Kopalnia Węgla Brunatnego “Konin” S.A. (”PAK KWB Konin S.A.”).
The work on the tests includes an unfavourable situation in the electricity production market, conservative forecasts on shaping the electricity prices, and the related production limits, which are expected within the Group, during the testing period.
The results of the conducted tests show the value impairment of the CGU ZE PAK S.A. tangible fixed assets within the ZE PAK S.A. separate financial statement (”separate financial statement”) drawn up in accordance with the Accounting Act in the amount of PLN 1,350 million as well as the value impairment of the CGU PAK KWB Konin S.A. tangible fixed assets within the PAK KWB Konin S.A. separate financial statement, which is also drawn up in accordance with regulations of the Accounting Act in the amount of PLN 290 million.
In the consolidated financial statement drawn up in accordance with the International Financial Reporting Standards, adopted by the EU (”IFRS”), the results of the value impairment test of the Capital Group tangible fixed assets indicate the value impairment in the amount of PLN 1,880 million, reducing the financial result by this amount. The impairment write-down will not affect the consolidated EBITDA result value.
At the same time, the result of the value impairment test of the CGU PAK KWB Konin S.A. tangible fixed assets justifies a necessity to make the impairment write-down within the ZE PAK S.A. separate financial statement for the loss in the share value in PAK KWB Konin S.A., the balance sheet value of which was PLN 124 million, and as a result of the write-down, it will be reduced to PLN 0 (zero).
Apart from the above-mentioned write-downs, the Company intends to take into account the impact of the following one-off events of a non-monetary nature, i.e. the value impairment of the deferred tax in ZE PAK S.A. and Elektrownia Pątnów II Sp. z o.o., as well as the mining asset write-down of the PAK Górnictwo Sp. z o.o. company in a total amount of PLN 42 million, on the financial results.
At the same time, the Company informs that the operations mentioned in the report have a non-monetary and accounting nature, and they do not affect the Company’s and Group’s liquidity situation. The test results in CGU PAK KWB Konin S.A. does not influence the current extraction activity and investment plans related to the preparation of new brown coal deposits for the Group’s generation assets.
The Company reserves that the consolidated and separate statements are being verified by the financial auditor, therefore, the above amounts may change. The final figures will be presented in the statements, which will be published on 21 March 2016.
Signatures of persons representing the company:
Aleksander Grad - President of the Management Board
Aneta Lato - Żuchowska – Vice President of the Management Board