Current Report No. 37 /2016
Belongs to:
- Reports
Subject: Reversal of the impairment loss on assets of Elektrownia Ostrołęka SA
Date of preparation: 14 October 2016
Legal basis: Article 17 Section 1 of the Market Abuse Regulation – confidential information
The Management Board of ENERGA SA hereby reports the reversal of the impairment loss on fixed assets under construction in the amount of PLN 110 million in its subsidiary, Elektrownia Ostrołęka SA. The above amount will improve the Energa Group’s operating result for Q3 2016 in the Generation segment and according to the prevailing definition will not affect its EBITDA result.
The PLN 122.6 million impairment loss was recognized in 2012 when the Ostrołęka C power plant project was put on hold. Today’s impairment loss reversal is a consequence of the progress of work to build a modern 1000 MW coal-fired unit in Ostrołęka, including execution of the General Terms and Conditions of Cooperation with Polska Grupa Górnicza sp. z o.o. setting out the rules of coal supply to the power plant in Ostrołęka.
At present, the special-purpose vehicle Elektrownia Ostrołęka SA holds complete documentation and administrative decisions allowing it to commence the work on building the 1000 MW unit after devising a viable business model and securing project financing.