Information on non-cash one-off items affecting the consolidated results of PGE Group for 2013
No. of the report: 10/2014
Report date: 18.02.2014
Report legal ground: Art. 56 section 1 p. 1 of Act on Public Offering – confidential information
Contents of the report
The Management Board of PGE Polska Grupa Energetyczna S.A. (“PGE”) discloses its intention to recognize the following non-cash one-off items in its consolidated financial results of PGE Capital Group for the year 2013 that will affect the reported financial results:
1. Additional provision raised for the CO2 emission rights:
- impact on EBIT: app. PLN (-) 750 million, impact on the net profit attributable to PGE: app. PLN (-) 601 million
In accordance with the provisions of, among others, the Directive 2003/87/EC of the European Parliament and of the Council, PGE Group is entitled to receive gratuitous CO2 emission rights due to expenditures incurred for investments submitted to the National Investment Plan.
Relevant reports on the investments execution were submitted for verification of the European Commission. Gratuitous CO2 emission rights for year 2013 that are due to PGE Group, have not been allocated until the balance sheet date.
2. Impairment of value of property, plant and equipment:
- impact on EBIT: app. PLN (-) 343 million, impact on the net profit attributable to PGE: app. PLN (-) 275 million
As a result of the tests for the impairment of assets, PGE Group recognized the loss of value in property, plant and equipment in Pomorzany CHP, Zgierz CHP and Dolna Odra power plant.
The aggregate impact of the above items on EBIT will amount to app. PLN (-) 1,093 million and on the net profit attributable to PGE will amount to app. PLN (-) 875 million.
Above information was prepared on the ground of the financial data, which are still being audited by the professional auditor. Therefore, the data presented above are not final and may change.
PGE will publish its financial statements for the year 2013 on March 12, 2014.
Legal ground: Art. 56 section 1 point 1 of the Act on public offering, conditions governing the introduction of financial instruments to organised trading, and public companies (Dziennik Ustaw of 2009 no 185, item 1439, as amended).