CURRENT REPORT No. 6/2019
Information about provision and a resulting change to TAURON PolskaEnergia Capital Group's estimated results for 2018 and Q4 2018
TAURON Polska Energia S.A. ("Issuer") announces that while draftingtheir consolidated financial statements for 2018, acting in accordancewith IAS 37 Provisions, they identified the need to set up a provisionin Q4 2018 related to contracts in the Supply Segment leading to chargesin the financial statements in the amount of PLN 214 million.
The basis for setting up the provision was the estimation of the impactof the legal regulations related to stabilization of prices forelectricity delivery to final consumers in 2019, and in particular ofthe act of December 28, 2018 on the amendment to the act on excise taxand amending some other acts ("Act") on the financial results of theIssuer's Capital Group's Supply Segment. The provision is related, firstof all, to the contracts for electricity delivery to households (theso-called G tariff).
The Issuer emphasizes that the provision was estimated based on thelegal status in force as of December 31, 2018 and it will be updated asof the subsequent balance sheet dates in accordance with the legalregulations in force as of these dates.
The Issuer informed about conducting the legal and accounting analysesrelated to recognizing the above mentioned regulations in TAURON Group'sfinancial statements, in current report no. 3/2019 of February 26, 2019.
Taking into consideration the fact of setting up the provision and inreference to current report no. 3/2019 of February 26, 2019 the Issuerpresents below TAURON Group's updated estimated results for 2018 and Q42018.
(a) 2018
Sales revenue: PLN 18,122 million
EBITDA (operating profit increased by depreciation, amortization andwrite-offs for non-financial assets): PLN 3,375 million, including:
- Mining segment's EBITDA: PLN (207) million
- Generation segment's EBITDA: PLN 731 million
- Distribution segment's EBITDA: PLN 2,517 million
- Supply segment's EBITDA: PLN 321 million
EBIT (operating profit): PLN 791 million
Negative exchange rate differences: PLN (83) million
Gross profit: PLN 505 million
Net profit: PLN 207 million
CAPEX: PLN 3,672 million
(b) Q4 2018
Sales revenue: PLN 4,820 million
EBITDA (operating profit increased by depreciation, amortization andwrite-offs for non-financial assets): PLN 403 million, including:
- Mining segment's EBITDA: PLN (113) million
- Generation segment's EBITDA: PLN 82 million
- Distribution segment's EBITDA: PLN 561 million
- Supply segment's EBITDA: PLN (131) million
EBIT (operating loss): PLN (515) million
Negative exchange rate differences: PLN (20) million
Gross loss: PLN (584) million
Net loss: PLN (648) million
CAPEX: PLN 1,347 million
Net debt as of December 31, 2018: PLN 8,629 million
Net debt/EBITDA ratio as of December 31, 2018: 2,54x (the ratiocalculation does not include PLN 1.54 billion of debt stemming fromsubordinated bonds issued).
The final financial results will be presented in the auditedconsolidated annual financial statements of TAURON Polska Energia S.A.Capital Group for 2018.
Legal basis:
Art. 17 sec. 1 of MAR - inside information