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Estimated selected financial data for the first half of 2016 and information on non-cash one-off items affecting the consolidated results of the period.

  • No. of the report: 40/2016
  • Report date: 27.07.2016 17:24
  • 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”, the “Company”) publishes estimated selected financial data for the first half of 2016: consolidated EBITDA will amount to approx. PLN 3.1 billion; net profit attributable to equity holders of the parent company will amount to approximately PLN 0.5 billion;
The above estimates include planned recognition of the following non-cash one-off items in the consolidated financial statements for the first half of the year 2016:

I. At the EBITDA level: 1) Revenues due to termination of long-term contracts for sale of capacity and electricity (so-called “LTC compensations”) in amount of approximately PLN 401 million (including PLN 148 million from court verdicts) accordingly increasing the reported EBITDA, 2) revaluation of balance sheet value of property rights at PGE GiEK Branch ZEDO decreasing reported EBITDA by approximately PLN 118 million.

II. At the level of net result attributable to equity holders of the parent company: 1) Revenues due to termination of long-term contracts for sale of capacity and electricity (so-called “LTC compensations”) – approximately PLN 325 million, accordingly increasing the reported net result, 2) revaluation of balance sheet value of property rights at PGE GiEK Branch ZEDO decreasing reported net result by approximately PLN 96 million, 3) impairment of assets of the Renewables segment of approximately PLN 0.8 billion – decreasing reported net income by approximately PLN 0.7 billion.

The Management Board of PGE explains that lower generation volume and lower realized wholesale price of electricity had the key impact on period’s results. In addition the period’s results were negatively affected by costs of CO2 emission which increased y-o-y by approximately PLN 160 million. Furthermore, compared to the first half of 2015, the capitalized cost of mining preparatory works (IFRIC 20) was lower by PLN 124 million (accounting recognition of mining preparatory works had positive contribution to results of the base period).

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 2016 will be published on August 9, 2016.
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