Pge Polska Grupa Energetyczna S.a.GPW: PGE

Consolidated financial statements of PGE Capital Group for 2021

Mar 22, 2022 at 10:31 PM UTC · Issued by PGE Polska Grupa Energetyczna S.A.

CONSOLIDATED FINANCIAL STATEMENTS

PGE Polska Grupa Energetyczna S.A.

for 2021

ended December 31, 2021

in accordance with IFRS (in PLNm)

PGE Group Consolidated financial statements for 2021 in accordance with IFRS (in PLNm)

PGE GROUP'S SELECTED CONSOLIDATED FINANCIAL DATA

	Period ended December 31	Period ended December 31

	2021	2020	2021	2020
	PLN million	EUR million

Revenue from sales	52,730	45,766	11,519	10,229
Operating profit	5,123	1,408	1,119	315
Gross profit	4,871	314	1,064	70
Net profit for the reporting period	3,945	148	862	33
Net profit attributable to shareholders of the parent	3,972	110	868	25
company

Comprehensive income	4,904	273	1,071	61
Net cash from operating activities	7,456	10,256	1,629	2,292
Net cash from investing activities	(4,367)	(6,037)	(954)	(1,349)
Net cash from financing activities	(528)	(1,357)	(115)	(303)
Net change in cash and equivalents	2,561	2,862	559	640
Net profit per share attributable to shareholders of	2.12	0.06	0.46	0.01
the parent company (in PLN/EUR per share)

Diluted net profit per share attributable to
shareholders of the parent company	2.12	0.06	0.46	0.01
(in PLN/EUR per share)
Weighted average number of ordinary shares used to	1,869,760,829	1,869,760,829	1,869,760,829	1,869,760,829
calculate profit per share


	As at	As at
	December 31,	December 31,	December 31,	December 31,
	2021	2020	2021	2020
	PLN million	EUR million

Non-current assets	66,239	66,498	14,402	14,410
Current assets	22,714	15,089	4,938	3,270
Assets classified as held for sale	13	7	3	2
Total assets	88,966	81,594	19,343	17,681
Equity	48,291	43,501	10,499	9,426
Equity attributable to shareholders of the parent	47,494	42,518	10,326	9,213
company

Share capital	19,165	19,165	4,167	4,153
Non-current liabilities	18,878	23,075	4,104	5,000
Current liabilities	21,797	15,018	4,740	3,254
Number of shares at the end of the reporting period	1,869,760,829	1,869,760,829	1,869,760,829	1,869,760,829
Book value per share	25.40	22.74	5.52	4.93
(in PLN/EUR per share)

Diluted book value per share (in PLN/EUR per	25.40	22.74	5.52	4.93
share)

The above financial data was converted into EUR in accordance with the following rules:

asset and equity and liability items - at the average exchange rate announced by the National Bank of Poland for December 31, 2022 - EURPLN 4,5994 and for December 31, 2020 - EURPLN 4,6148.
items in the statement of comprehensive income and statement of cash flows - at an exchange rate constituting the arithmetic mean of the average exchange rates published by the National Bank of Poland for the last day of each month in the financial year from January 1, 2021 to December 31, 2021 - EURPLN 4,5775; for the period from January 1, 2020 to December 31, 2020 - EURPLN 4,472.

The accounting rules and additional explanatory notes	2
constitute an integral part of these consolidated financial statements.

PGE Group Consolidated financial statements for 2021 in accordance with IFRS (in PLNm)

Table of contents
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME ...............................	6
CONSOLIDATED STATEMENT OF FINANCIAL POSITION......................................	7
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY........................................	8
CONSOLIDATED STATEMENT OF CASH FLOWS ....................................................	9
GENERAL INFORMATION, BASIS FOR PREPARATION OF FINANCIAL
STATEMENTS AND OTHER EXPLANATORY INFORMATION.................................	10
1. General information ..........................................................................................	10
Information on the parent ......................................................................	10
Information on PGE Group......................................................................	10
PGE Group's composition........................................................................	11
2. Basis for preparation of financial statements........................................................	16
Statement of compliance ........................................................................	16
Presentation and functional currency .......................................................	16
New standards and interpretations published, not yet effective...................	17

3. Impairment tests on property, plant and equipment, intangible assets and goodwill 17

	Analysis of indications for the Conventional Generation segment ................	19
	Description of assumptions for the District Heating segment ......................	20
	Analysis of indications for the Renewables segment ..................................	21
	Distribution segment's property, plant and equipment ...............................	22
4.	Selected accounting rules ..................................................................................	23
5. Changes in accounting principles and data presentation........................................	24
EXPLANATORY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS .......	25
EXPLANATORY NOTES TO OPERATING SEGMENTS............................................	25
6. Information on operating segments ....................................................................	25
	Information on operating segments .........................................................	28
	Information on geographical areas ..........................................................	30
EXPLANATORY NOTES TO THE CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME .................................................................................	31
7.	Revenue and costs............................................................................................	31
	Revenue from sales ...............................................................................	31
	Costs by nature and function ..................................................................	36
	Other operating income and costs ...........................................................	38
	Finance income and finance costs............................................................	39
	Share of profit of equity-accounted entities ..............................................	40
8.	Income tax ......................................................................................................	41
	Tax in the statement of comprehensive income ........................................	41
	Effective tax rate ...................................................................................	41
EXPLANATORY NOTES TO THE CONSOLIDATED STATEMENT OF FINANCIAL
POSITION ...........................................................................................................	42
9. Property, plant and equipment ...........................................................................	42
10. Investment property .........................................................................................	46
11. Intangible assets and goodwill ...........................................................................	47
12. Right-of-use assets ...........................................................................................	49
The accounting rules and additional explanatory notes
		3
constitute an integral part of these consolidated financial statements.

PGE Group Consolidated financial statements for 2021 in accordance with IFRS (in PLNm)

13.	Shares accounted for using the equity method ....................................................	51
14.	Deferred tax in statement of financial position .....................................................	51
	Deferred income tax assets.....................................................................	52
	Deferred tax liabilities.............................................................................	52
15.	Inventories ......................................................................................................	54
16.	CO2 emission allowances for captive use .............................................................	55
17.	Other current and non-current assets .................................................................	55
	Other non-current assets........................................................................	56
	Other current assets ..............................................................................	56
18.	Cash and cash equivalents.................................................................................	57
19.	Social Fund assets and liabilities.........................................................................	57
20.	Equity..............................................................................................................	58
	Share capital .........................................................................................	58
	Reserve capital ......................................................................................	59
	Hedging reserve ....................................................................................	59
	Foreign exchange differences from translation ..........................................	59
	Retained earnings and limitations on payment of dividend .........................	60
	Equity attributable to non-controlling interests..........................................	60
	Earnings per share.................................................................................	61
	Dividends paid and recommended for payment ........................................	61
21.	Provisions ........................................................................................................	61
	Rehabilitation provision ..........................................................................	64
	Provision for cost of CO2 emissions ..........................................................	65
	Provision for energy origin rights held for redemption................................	65
	Provision for claims concerning non-contractual use of property .................	65
	Other provisions ....................................................................................	65
22.	Employee benefits ............................................................................................	66
23.	Deferred income and governments grants...........................................................	68
	Non-current deferred income and government grants ...............................	68
	Current deferred income and governments grants ....................................	68
24.	Other non-financial liabilities ..............................................................................	69
	Other non-currentnon-financial liabilities .................................................	69
	Other current non-financial liabilities........................................................	69
EXPLANATORY NOTES TO FINANCIAL INSTRUMENTS.......................................	70
25.	Financial Instruments........................................................................................	70
	Description of significant items within particular classes of financial
	instruments...........................................................................................	70
	Fair value of financial instruments ...........................................................	77
	Fair value hierarchy ...............................................................................	77
	Statement of comprehensive income .......................................................	80
	Collateral for repayment of receivables and liabilities.................................	81
26.	Objectives and principles of financial risk management.........................................	81
	Market risk............................................................................................	82
	Liquidity risk..........................................................................................	86
	Credit risk .............................................................................................	87
	Market (financial) risk - sensitivity analysis...............................................	90
	Hedge accounting ..................................................................................	92

The accounting rules and additional explanatory notes	4
constitute an integral part of these consolidated financial statements.

PGE Group Consolidated financial statements for 2021 in accordance with IFRS (in PLNm)

EXPLANATORY NOTES TO THE STATEMENT OF CASH FLOWS............................	94
27.	Statement of cash flows ....................................................................................	94
	Cash flows from operating activities.........................................................	94
	Cash flows from investing activities .........................................................	95
	Cash flows from financing activities .........................................................	96
OTHER EXPLANATORY NOTES ............................................................................	97
28.	Contingent liabilities and receivables. Legal claims ...............................................	97
	Contingent liabilities...............................................................................	97
	Other significant issues related to contingent liabilities...............................	98
	Other court cases and disputes ...............................................................	99
29.	Future investment commitments ......................................................................	101
30.	Tax settlements..............................................................................................	101
	Contingent receivables .........................................................................	103
31.	Information on related parties..........................................................................	104
	Associates and jointly controlled entities ................................................	104
	State Treasury-controlled companies .....................................................	104
	Management Board and Supervisory Board remuneration........................	104
32.	Entity authorised to audit financial statements...................................................	105
33.	Significant events during and after the reporting period......................................	106
	Impact of COVID-19 on PGE Group's business ........................................	106
	Preliminary proposal to purchase stake in Fortum's assets .......................	107
	Investment agreement with Ørsted for offshore wind farm projects ..........	107
	Czechia's complaint against Poland regarding prolongation of mining
	concession for KWB Turów....................................................................	108
	Planned disposal of coal assets to National Energy Security Agency (NABE)109
	Events after the reporting period ...........................................................	110
34.	Approval of financial statements.......................................................................	113
35.	Glossary of terms and abbreviations .................................................................	114

The accounting rules and additional explanatory notes	5
constitute an integral part of these consolidated financial statements.

This is an excerpt of the original content. To continue reading it, access the original document here.

Company analysis