Current Report No.: 10/2016
Current Report No.: 10/2016
Date of preparation: 04.03.2016
Short name of issuer: Enea S.A.
Subject: The notification about the intention to disclose the results of asset impairment tests in 2015 financial statements
Legal basis: Article 56 item 1(1) of the Act on Offerings - confidential information
Content of report:
The Management Board of Enea S.A. (Issuer) informs that in relation to the conclusion of works related to asset impairment tests under IAS 36 in the areas involved in electricity and heat production (Segment of Generation) and coal production (Segment of Mining) on 4 March 2016 a decision was taken concerning asset carrying value write-downs in the aforementioned segments.
Within the Segment of Generation the following areas were tested: System Power Plants, Heat, Renewable Energy Sources (Wind, Water).
Impact on the consolidated financial statements of Enea Capital Group
The test results in the Segment of Generation indicate the assets carrying value impairment that will be disclosed in the consolidated financial statements of Enea Capital Group in the total amount of PLN 1,702.8 mln (Area of System Power Plants: PLN 1,222.3 mln, Area of Heat: PLN 253.6 mln, Area of RES: PLN 226.9 mln), including:
- tangible assets - PLN 1,501.6 mln,
- the company's goodwill recognised at the time of settlement of share acquisition transaction - PLN 201.2 mln.
In the Segment of Mining the values of assets recognised as a result of allocation of the acquisition price of LW Bogdanka S.A. are consistent with the assets' value in use estimated during impairment tests, therefore the tangible asset impairment write-downs in the Segment of Mining will be applied exclusively to the non-consolidated result of LW Bogdanka S.A.
The value of asset impairment write-downs will be charged to the gross financial result, both consolidated and non-consolidated, but will not impact neither the consolidated, nor non-consolidated EBITDA result.
Impact on the non-consolidated financial statements of LW Bogdanka S.A.
In the Segment of Mining the total value of estimated tangible assets impairment write-downs will amount to PLN 624.8 mln.
Impact on the non-consolidated financial statements of Enea S.A.
In the non-consolidated financial statements of Enea S.A. for 2015 financial year the performed tests demonstrate the necessity of recognising asset carrying value impairment write-down in Enea Wytwarzanie Sp. z o.o. totalling to PLN 2,089.8 mln.
At the same time, the Issuer points out that the above mentioned operations are only of an accounting nature and have no impact on the liquidity situation of the Company and its Capital Group. The Company reserves that the values presented above are only estimates and may change. The final results of the tests and the value of write-downs will be presented in the financial statements of Enea S.A. and Enea Capital Group for 2015, which are planned for publication on 21 March 2016.