Partial release of the provision created for the settlement of the Coal Project under the Ostrołęka C Project
- Current reports
Current Report No. 26/2021
Date: 9 July 2021
Subject: Partial release of the provision created for the settlement of the Coal Project under the Ostrołęka C Project
Legal basis: Article 17 (1) of MAR - inside information
The Management Board of Energa SA ("Company") informs that as part of the preparation of the consolidated and standalone financial statements for the first half of 2021, on 9 July 2021 it proved possible to partial release of the provision to the level of PLN 107 million created initially in the amount of PLN 218 million to finance Elektrownia Ostrołęka Sp. z o.o. ("SPV") for the purposes of the settlement of the Ostrołęka "C" Power Plant with a capacity of 1,000 MW construction project ("Coal Project") implemented by the SPV. The Company informed about the creation of the above mentioned provision in the current report No. 60/2020 of 23 July 2020.
The partial release of the provision took place in connection with the planned settlement of the Coal Project on terms specified in current reports No. 24/2021 and No. 25/2021 of 25 June 2021.
The estimated impact of the above event on the consolidated net result of the Energa Group and standalone net result of Energa SA for the first half of 2021 will amount to approx. PLN 111 million. The event is of a non-cash nature. It will increase the net result without affecting the EBITDA result (operating profit before amortization and impairment of non-financial non-current assets).
The financial data presented are estimates and are subject to review by the auditor, therefore they may change. The final amount of the released provision will be presented in the condensed interim consolidated financial statements of the Energa Group for the first half of 2021 and in the condensed interim standalone financial statements of Energa SA for the first half of 2021.