Current Report No.: 9/2022
Current Report No.: 9/2022
Date of Preparation: 3 February 2022
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 include non-recurring operations of an accounting nature in the financial statements for 2021
Body of the report:
The Management Board of ENEA S.A. ("Company", "Issuer") hereby reports that in connection with the preparation of its (standalone and consolidated) financial statements for 2021, the need was identified, on 3 February 2022, to increase the provision for onerous contracts in the trading segment, the balance of which as at 30 September 2021 was PLN 61.9 million in accordance with the standalone financial statements of ENEA S.A. included in the interim report for Q3 2021, to PLN 250.1 million. The provision established originally amounted to PLN 50.8 million, which was disclosed by the Issuer in its periodic report for 2020.
The purpose of the increase in the provision to PLN 250.1 million is aimed at reflecting the impact of anticipated future losses to be incurred by the Issuer in connection with the performance of comprehensive contracts entered into with prosumers who, in compliance with the amendment to the Act on Renewable Energy Sources, have acquired the right to financial settlements, over a 15-year period, based on a discount support system (so-called _#8216;net-metering'), on the condition that their micro-installations are connected to the grid by 31 March 2022. The amount of the provision will be updated quarterly.
This event will affect the standalone financial statements of ENEA S.A. for 2021 and the consolidated financial statements of the ENEA Group for 2021 by reducing EBITDA by approx. PLN 188 million, pre-tax profit by approx. PLN 188 million and net profit for the Company's reporting period by approx. PLN 152 million.
The Issuer also hereby reports that the provision for future investment commitments towards Elektrownia Ostrołęka sp. z o.o. has been partially reversed (established originally in the amount of PLN 222.2 million) from PLN 108.1 million (disclosed in the interim report for Q3 2021), by PLN 61.6 million, down to PLN 46.5 million.
This event will affect the standalone financial statements of ENEA S.A. for 2021 and the consolidated financial statements of the ENEA Group for 2021 by increasing pre-tax profit and net profit for the Company's reporting period by approx. PLN 61.6 million.
The event described above is a non-cash event that increases net profit for the reporting period without affecting the consolidated or standalone EBITDA for the reporting period.
In aggregate, both these events related to the provision for onerous contracts and the provision for future investment commitments towards Elektrownia Ostrołęka sp. z o.o. will affect the standalone financial statements of ENEA S.A. for 2021 and the consolidated financial statements of the ENEA Group for 2021 by reducing EBITDA by approx. PLN 188 million, pre-tax profit by approx. PLN 126.4 million and net profit for the Company's reporting period by approx. PLN 90.4 million.
Please be advised that the foregoing figures are estimates and as such are subject to change, and that their final amounts will be presented in the periodic reports of the Company and the ENEA Group for 2021.
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 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).
