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Estimated consolidated EBITDA for the first half of 2014 and information on non-cash one-off items affecting the consolidated results of PGE Group for the first half of 2014

  • No. of the report: 37/2014
  • Report date: 28.07.2014
  • 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”) publicly communicates that, according to the preliminary estimates, consolidated EBITDA for the first half of 2014 will amount to approx. PLN 4.6 billion.

The above estimate includes planned recognition of the following, previously undisclosed non-cash one-off items in the consolidated financial statements for the first half of the year 2014:

1. Revaluation of revenues due to termination of long-term contracts of sale of capacity and electricity (so-called “LTC compensations”), resulting from re-calculation of the LTC compensation model in scope of realised and projected results of the generators, that are subject to the compensations scheme, and other generators from PGE capital group. Value of LTC compensations resulting from the revaluation will amount to approximately PLN 911 million, what will accordingly increase the reported EBITDA.

2. Recognition of the verdicts of the Court of Appeal regarding the disputes on LTC compensations will affect other operating revenues by approximately PLN 246 million, what will accordingly increase the reported EBITDA.

3. Decrease of discount rate applied by PGE inter alia for valuation of provision for recultivation and actuarial provision as a result of drop of market interest rates in Poland. Modification of the discount rate resulted in increase of provision for recultivation and actuarial provision and decrease of EBITDA by approximately PLN 649 million.

Disclaimer: financial statements of the PGE Group are still being reviewed by the auditor. Presented values are estimated and may change.

The consolidated half-year report for the first half of 2014 will be published on August 27, 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 2009 no 185, item 1439, as amended).
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