Completion of the settlement process of the Coal Project with the General Contractor under the contract for the construction of the Ostrołęka _quot;C_quot; Power Plant
- Current reports
Current report No. 11/2022
Date: 1 April 2022
Subject: Completion of the settlement process of the Coal Project with the General Contractor under the contract for the construction of the Ostrołęka _quot;C_quot; Power Plant
Legal basis: Article 17 (1) of MAR - inside information
With reference to current reports No. 25/2021 of 25 June 2021 and No. 41/2021 of 22 December 2021, the Management Board of Energa SA (_quot;Issuer_quot;) informs that on 1 April 2022 it received the information from the company Elektrownia Ostrołęka Sp. z o.o. (_quot;EO_quot;) on the completion of the settlement on 31 March 31, in accordance with the concluded agreement (referred to in the above mentioned current reports), of the Coal Project under the contract for the construction of the Ostrołęka _quot;C_quot; Power Plant with the General Contractor - consortium GE Power sp. z o. o based in Warsaw (leader) and GE Steam Power Systems S.A.S. based in Boulogne-Billancourt, France. The final value of the receivables resulting from the settlement was PLN 958 million net and therefore the amount due to the General Contractor, resulting from the difference between the above value and the total amounts already paid, was already paid in full by EO. Thus, the process of settlement of the Coal Project with the General Contractor was completed. The costs incurred by the Issuer in connection with the settlement of the works of the General Contractor amounted to 50% of the above mentioned amount, i.e. PLN 479 million net (the same amount of costs was incurred by Enea S.A.).
In relation to the above the Issuer identified the possibility of further release of the provision - to the level of approx. PLN 16 million - created initially in the amount of PLN 218 million to finance EO for the purposes of the settlement of the Coal Project. The impact of the above event on the consolidated net result of the Energa Group and standalone net result of Energa SA for 2022 amounted to approx. PLN 30 million (as a result of decreasing of the above mentioned provision from the level of PLN 46 million at the end of 2021). The event is of a non-cash nature. It increased the net result without affecting the EBITDA result (operating profit before amortization and impairment of non-financial non-current assets).