Profil:
PGE SAPGE power no longer expects such large write-offs in coal segment
Listed power utility PGE no longer expects to make such a large write-offs in the coal energy segment, deputy CEO and CFO Przemyslaw Jastrzebski told a conference.
"Four of the five coal assets have already been written down to zero. The future potential in this area is now limited," CFO Jastrzebski told the press conference.
"We are required to conduct tests at specific intervals, and it is difficult to say with 100 percent certainty that this is the definitive end. Everything depends on how the prospects for this segment develop. However, massive write-downs are probably behind us," he added.
Impairment tests on property, plant, and equipment led to write-offs of about PLN 8.7 billion (EUR 2.04 bln) in the coal energy segment and PLN 400 million (EUR 93.9 mln) in the renewables segment in the first half of the year. Additionally, deferred tax assets in the coal energy segment were reduced by roughly PLN 2.5 billion (EUR 586.8 mln).
Jastrzebski noted that the coal energy segment write-offs should not be viewed as a big surprise, as they are a market situation consequence, an overview of the situation and the prospects for the future financial results of this area.
pel/ nl/ ao/