TAURON Polska Energia : Current Report No. 15/2019

30.04.2019 05:00

TAURON Polska Energia S.A. ('Company') announces selected estimated consolidated financial results and operational data of TAURON Polska Energia S.A. Capital Group ('TAURON Group') for Q1 2019.

Selected estimated consolidated financial results for Q1 2019:

Sales revenue: PLN 5,313 million
EBITDA (operating profit increased by depreciation, amortization and write-offs for non-financial assets): PLN 1,212 million, including:
- Distribution Segment's EBITDA: PLN 681 million
- Generation Segment's EBITDA: PLN 387 million
- Supply Segment's EBITDA: PLN 165 million
- Mining Segment's EBITDA: PLN (44) million
EBIT (operating profit): PLN 728 million
Gross profit: PLN 654 million
Net profit: PLN 525 million
CAPEX: PLN 727 million
Net debt as of 31 March 2019: PLN 9,219 million
Net debt/ EBITDA as of 31 March 2019: 2.73x

Selected operational data for Q1 2019:

Distribution of electricity: 13.54 TWh (including to final consumers: 13.09 TWh)
Gross electricity production: 3.82 TWh
Heat production: 4.76 PJ
Retail electricity sales: 8.93 TWh
Commercial coal production: 1.26 million tons
Commercial coal sales: 1.20 million tons

The Company indicates that in Q4 2018, having estimated the impact of the legal regulations concerning stabilization of prices for electricity supply to final consumers in 2019, a provision was set up for onerous contracts in the financial statements in the amount of PLN 214 million (current report No. 6/2019), out of which PLN 51 million was utilized in Q1 2019. The provision was updated as of 31 March 2019 in line with legal regulations in force as of that date and amounts to PLN 163 million.

Additionally, the Company informs that starting from 1 January 2019 new accounting policy has been implemented in the TAURON Group concerning presentation of mining assets used for excavation of headings and reinforcement of mine walls in the Mining Segment. As a result, cumulated costs of works related to excavation of headings and reinforcement of mine walls are presented under Property, plant and equipment (previously under Other non-financial assets). Settlement of expenditures borne on these assets is presented in the financial result as amortization. Change of the accounting policy had positive impact on Mining Segment's EBITDA in Q1 2019 amounting to PLN 25 million.

In financial results of the Generation Segment for Q1 2019, 883 thousand Certified Emission Reduction (CER) units have been booked in the cost of provision set up in connection with the requirement to surrender CO2 emission allowances. The Company estimates that taking the abovementioned CER units (whose purchase price is significantly lower than that of EUA units) into account in the cost of provision had positive impact on Generation Segment's EBITDA amounting to PLN 60 million.

The financial results presented above are estimated and may be subject to change.

The final financial results will be presented in the extended consolidated interim report for Q1 2019.

Article 17 of MAR - inside information