Information about impairment losses on wind assets
Belongs to:
- Current reports
Current Report No. 40/2017
Date of Preparation: 13 October 2017
Subject: Information about impairment losses on wind assets
Legal Basis: Art. 17 sec. 1 MAR - confidential information.
The ENERGA SA Management Board hereby reports that in connection with changes in the market environment, such as the falling prices for the certificates of origin for energy and the persistently low electricity prices, certain factors have been identified that may result in a decline in some of the ENERGA Group's recoverable assets.
As a result of conducted impairment tests conducted for Q3 2017, on 13 October 2017 the decision was made to recognize impairment losses in the Generation Segment for the existing wind farms totaling PLN 70.6 milion and for the goodwill totaling PLN 10.9 milion. The total impact exerted by these impairment losses on the ENERGA Group's consolidated financial statements for Q3 2017 is PLN 81.4 million. The above operation is of a non-cash nature. It will be charged to the ENERGA Group's operating result without impacting the EBITDA result.
After making these impairment losses, the book value of the wind farms in the ENERGA Group's consolidated balance sheet is PLN 520.5 million, including PLN 8.1 million for future wind power plants.
The presented items are estimates and subject to change. They will be taken into consideration in the interim report for Q3 2017 to be published on 8 November 2017.