The Issuer indicates that during work on the preparation of the extended consolidated quarterly report of the TAURON Polska Energia SA Capital Group for the third quarter of 2023, indications were identified that could indicate an impairment of assets in the Generation segment, resulting in particular from:
– an increase in the share of renewable sources in electricity production in Poland, resulting in a reduction in the volume of electricity production from conventional sources,
– a decline in actual and forecast levels of market prices for electricity,
– economic slowdown, which reduces the national demand for electricity.
The impairment tests conducted as of September 30, 2023 did not demonstrate the need to create impairment losses on the non-financial assets of the Issuer’s Capital Group in the interim condensed consolidated financial statements of the Issuer’s Capital Group for the period of 9 months of 2023.
With regard to the stand-alone result of TAURON Polska Energia SA, the Issuer indicates that the analyzes carried out as part of the impairment tests showed the justification for reducing the carrying value of loans granted by the Issuer to TAURON Wytwarzanie SA (a subsidiary of the Issuer) by the amount of PLN 788 million, which will result in a reduction the Issuer’s gross financial result for the period of 9 months of 2023 by PLN 788 million.
The reduction in the carrying value of the loans will not affect the EBITDA result of the Issuer and the Issuer’s Capital Group for the period of 9 months ended September 30, 2023 (by EBITDA result, the Issuer means EBIT plus depreciation and write-offs for non-financial assets).-
The Issuer reserves that the values presented above are estimates and may change. The final test results will be presented in the extended consolidated quarterly report of the TAURON Polska Energia SA Capital Group for the third quarter of 2023.