Current Report No.: 47/2020
Current Report No.: 47/2020
Date of preparation: 27 October 2020
Issuer's Abbreviated Name: ENEA S.A.
Legal Basis: Article 17(1) of the Market Abuse Regulation - confidential information
Subject: Information on the intention to recognize a non-recurring operation of an accounting nature in the financial statements for Q3 2020
Body of the report:
The Management Board of ENEA S.A. (Company, Issuer) hereby reports that in connection with the preparation of the (standalone and consolidated) financial statements for Q3 2020, on 27 October 2020, the Company has identified the need to recognize an impairment loss on the block of shares held by the Company in Polska Grupa Górnicza S.A. (PGG) estimated at approx. PLN 254 million in the standalone financial statements for Q3 2020 and approx. 129 million in the consolidated financial statements for Q3 2020.
After the impairment loss is recognized, the value of investments measured by the equity method for PGG shares in the consolidated and standalone statement of financial position will be PLN 0.
This event will affect the standalone financial statements of ENEA S.A. by reducing the Company's pre-tax profit and net profit for the reporting period by approx. PLN 254 million.
This event will affect the consolidated financial statements of the ENEA Group by reducing the its pre-tax profit and net profit for the reporting period by approx. PLN 129 million.
The event described above is a non-cash event and therefore it has no impact on either the consolidated or standalone EBITDA for the reporting period.
Please be advised that the amount of the above impairment loss is an estimate and is subject to change; its final value and ultimate impact on the items and the measure mentioned in this current report will be presented in the Issuer's relevant periodic report for Q3 2020.
Please note that the term EBITDA is defined as the value of operating profit (loss) + depreciation and amortization + impairment losses on non-financial non-current assets (values presented on a consolidated basis for the reporting period). EBITDA is a standard measure of efficiency of a business activity, in particular for the industry in which the Issuer's Group operates. The above definition and methodology for its calculation are the same as those used to calculate this indicator in the Issuer's periodic reports. The definition above is also included in the glossary of terms and abbreviations available on the Company's website (https://ir.enea.pl/slownik).
