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Information about the test for impairment of assets being conducted within the Renewables segment.

  • No. of the report: 38/2016
  • Report date: 05.07.2016 18:40
  • Report legal ground: Art. 17 sect. 1 of MAR – inside information.

Contents of the report

The Management Board of PGE Polska Grupa Energetyczna S.A. (“PGE”) discloses that PGE identified indications to conduct tests for impairment of assets in accordance with the IAS 36, regarding assets of Renewables segment.

Among rationales behind conducting impairment tests were:
- changes in market environment (prices of green certificates),
- changes in legal environment (increase of tax burden caused by Wind Farm Investment Act).
Impairment tests implied the total loss at the consolidated balance sheet (PGE Group) of approximately PLN 0.8 billion. The above value includes: tangible fixed assets related to operating wind farms, investment projects and goodwill.

Appropriate impairment loss will be recognized in the consolidated financial statements of PGE for the first half of 2016.

According to initial estimates, the net value of tangible fixed assets attributable to wind farms of Renewables segment, after the recognition of impairment losses, amounts to approximately PLN 2.3 billion, including investment projects of approximately PLN 0.2 billion.

Impairment tests indicated that hydro power plants and pumped storage power plants were not subject to impairment losses.

Disclaimer: Value presented above is estimated and may change. Final result of the tests and value of the impairment of assets will be presented in the consolidated financial statements of PGE for the first half of 2016 that will be published on August 9, 2016.