With regard to the current report no. 8/2020 dated March 3, 2020, the Management Board of PGE Polska Grupa Energetyczna S.A. ”PGE”) discloses that major works regarding tests for impairment of tangible fixed assets in accordance with the IAS 36 have been completed.
Results of conducted tests indicate the impairment loss of balance sheet value of property, plant and equipment in Conventional Generation segment amounting to approx. PLN 7.5bn. At the same time, the indications were identified to reverse an impairment loss in Renewables segment in amount of approx. PLN 0.4bn.
Accordingly, appropriate adjustments updating value of property, plant and equipment will be recognized in the consolidated financial statements of PGE for the year 2019. The above adjustments are of non-cash nature. They will lower the PGE Group’s net result for 2019 by approx. PLN 5.8bn.
Presented values are estimated and may change. Consolidated financial statements of the PGE Capital Group are being audited by the professional auditor. Final value of the impairment will be presented in the annual consolidated report of the PGE Capital Group for 2019.