Consolidated statement
of comprehensive income

 

Note Year ended
31 December 2015
Year ended
31 December 2014
(adjusted figures)
Sales revenue 11

11. Sales revenue

 
Year ended
31 December 2015
Year ended
31 December 2014
(adjusted figures)
Sale of goods for resale, finished goods and materials without elimination of excise 12 191 724 12 785 392
Excise (425 691) (453 850)
Sale of goods for resale, finished goods and materials, of which: 11 766 033 12 331 542
Electricity 10 099 333 10 503 015
Heat energy 613 660 629 766
Energy certificates and greenhouse gas emission allowances 386 211 354 247
Coal 439 608 470 519
Furnace blast and compressed air 56 230 544
Other goods for resale, finished goods and materials 227 165 143 451
Rendering of services, of which: 6 552 945 6 193 716
Distribution and trade services 6 184 958 5 816 878
Connection fees 124 866 122 594
Maintenance of road lighting 116 042 111 634
Other services 127 079 142 610
Other revenue 56 246 52 221
Total sales revenue 18 375 224 18 577 479

 



The revenue from sale of furnace blast and compressed air decreased because in December 2014 Zakład Wytwarzania Nowa was contributed in kind by the TAURON Group to TAMEH POLSKA Sp. z o.o., being a part of a joint arrangement. Zakład Wytwarzania Nowa was a major provider of the Group’s products in question in the comparable period.

Additional assessment of revenue from sales of electricity and distribution services in the Sales segment

Additional assessment of the revenue from the sale of electricity and distribution services have been discussed in Note 9.26 Sales revenue.

As at 31 December 2015 additionally assessed revenue from sale of electricity and distribution services in the Sales segment reached PLN 248 098 thousand and, when revered estimations from the prior year have been accounted for, the impact on the profit or loss for the year has reached PLN 95 390 thousand.

18 375 224 18 577 479
Cost of sales, including: 12 (19 140 775)  (15 648 779)
Impairment of non-financial non-current assets 12 (3 594 654) (50 050)
Profit (loss) on sale   (765 551) 2 928 700
Selling and distribution expenses 12 (488 859) (549 164)
Administrative expenses 12 (618 969) (664 187)
Other operating income and expenses 13

13. Other operating income and expenses

Year ended
31 December 2015
Year ended
31 December 2014
Penalties, fines, compensations received or receivable 28 043 27 530
Surplus of provisions (recognized)/derecognized (12 616) 44 672
Subsidies/grants and revenue representing the equivalent of amortization/depreciation charges on subsidies/grants to fixed assets or fixed assets received free of charge 39 404 25 335
Surplus of shares taken up in a joint venture over the value
of contributed assets
38 965
Derecognition of actuarial provisions for the existing pensioners and disability pensioners in the Mining segment 45 557
Other 43 878 32 109
Total other operating income 144 266 168 611
Loss on the disposal of property, plant and equipment / intangible assets and costs of damages to non-current assets (14 973) (17 602)
Write-off for abandoned investments and production as well as liquidated materials (81 540) (1 826)
Costs of court proceedings, fines and damages (12 322) (12 659)
Other (63 193) (21 760)
Total other operating expenses (172 028) (53 847)
Total other operating income and expenses (27 762) 114 764

 


An increase in the costs of writing off discontinued investments is related to the write off of capitalized costs of drilling drifts and reinforcing working faces in the amount of PLN 78 610 thousand due to loss of economic use.


An increase in other operating expenses vs. the comparative data results mostly from settlement of a shortage in the inventory volume of coal and semi-finished products of PLN 39 084 thousand detected during a physical count in TAURON Wydobycie S.A.
(27 762) 114 764
Operating profit (loss)   (1 901 141) 1 830 113
Share in profit/(loss) of joint ventures 22

22. Investments in joint ventures

 Elektrociepłownia Stalowa Wola S.A. Elektrownia Blachownia Nowa
Sp. z o.o.
TAMEH HOLDING
Sp. z o.o. *
As at
31 December 2015
Non-current assets 1 085 917 1 295 743 2 381 660
Current assets 12 387 37 008 341 716 391 111
Non-current liabilities (-) (965 514) (378 507) (1 344 021)
Current liabilities (-) (125 610) (85) (377 432) (503 127)
Total net assets 7 180 36 923 881 520 925 623
Share in net assets 3 590 18 461 440 760 462 811
Investment in joint ventures 18 461 399 666 418 127
Share in revenue of joint ventures 18 490 545 175 545 683
Share in profit/(loss) of joint
ventures
(1 474) (13 644) 23 051 7 933
Share in other comprehensive income of joint ventures (387) (387)

 


*The data presented concern the TAMEH HOLDING Sp. z o.o. capital group. The value of the interest held in TAMEH HOLDING Sp. z o.o. differs from the value of net assets attributable to the Group, because the cost of shares in TAMEH HOLDING Sp. z o.o. was calculated taking into account the fair value of the share contributed to the joint venture by companies from the ArcelorMittal Capital Group.

Elektrociepłownia Stalowa Wola
S.A.
Elektrownia Blachownia Nowa
Sp. z o.o.
TAMEH HOLDING
Sp. z o.o. *
As at
31 December 2014
Non-current assets 973 128 27 351 985 875 1 986 354
Current assets 53 283 36 920 319 756 409 959
Non-current liabilities (-) (900 635) (34 085) (934 720)
Current liabilities (-) (92 570) (59) (433 758) (526 387)
Total net assets 33 206 64 212 837 788 935 206
Share in net assets 16 603 32 106 418 894 467 603
Elimination of transactions with Group companies (11 127) (11 127)
Investment in joint ventures 5 476 32 106 377 002 414 584
Share in revenue of joint ventures 54 490 17 446 17 990
Share in profit/(loss) of joint
ventures
(2 183) 42 1 205 (936)

 



 
*The data presented concern the TAMEH HOLDING Sp. z o.o. capital group

 

Elektrociepłownia Stalowa Wola S.A.        

Elektrociepłownia Stalowa Wola S.A. is a special purpose vehicle established in 2010 on the initiative of TAURON Polska Energia S.A. and PGNiG S.A. The entity was registered to carry out an investment project, i.e. construction of a gas and steam unit fuelled with natural gas in Stalowa Wola with the gross maximum electrical capacity of 400 MWe and the net heat capability of 240 MWt.

TAURON Polska Energia S.A. holds an indirect 50% interest in the share capital of this company and in its governing body through TAURON Wytwarzanie S.A. Since as at 31 December 2015 the existing share in losses of a joint venture and the adjustment of performance on top-down transactions concluded between the Group companies and the joint venture exceeded the value of interests held in this joint venture, the Company has ceased recognizing its interests in further losses generated by the joint venture.

Additionally, the Company holds receivables arising from loans originated to Elektrociepłownia Stalowa Wola S.A.
in the amount of PLN 223 909 thousand, as described in detail in Note 23 and provisions for onerous contracts resulting from commercial contracts concluded by the Company in the amount of PLN 182 877 thousand (Note 36).

Elektrownia Blachownia Nowa Sp. z o.o.

On 5 September 2012 TAURON Wytwarzanie S.A., subsidiary, and KGHM Polska Miedź S.A. established a special purpose vehicle named Elektrownia Blachownia Nowa Sp. z o.o. with the registered address in Kędzierzyn Koźle. The Company was set up to perform a comprehensive investment project including preparation, construction and operation of a combined cycle gas and steam unit with the capacity of ca. 850 MWe on the land of TAURON Wytwarzanie S.A. – Oddział Elektrownia Blachownia.

TAURON Polska Energia S.A. holds an indirect 50% interest in the share capital of this company and in its governing body through TAURON Wytwarzanie S.A.

On 30 December 2013 TAURON Polska Energia S.A., KGHM Polska Miedź S.A. and TAURON Wytwarzanie S.A. concluded an agreement, based on which the construction of gas and steam power unit in Elektrownia Blachownia Nowa Sp. z o.o. has been suspended. The decision resulted from the current situation in the electricity and gas market entailing higher investment risk, which made the entities review and optimise the project.

The parties undertook to ensure further business operations of Elektrownia Blachownia Nowa Sp. z o.o., securing deliverables provided thus far, in particular updating project documentation and ensuring on-going monitoring of the energy market and regulatory environment in view of the possibility to restart project performance as soon as possible. The parties agreed that the decision to recommence the project will be adopted in the form of a separate agreement which is expected to be concluded by 31 December 2016.

As at 31 December 2015, following the project analysis, including the probability of its non-performance, recognition of an impartment loss on property plant and equipment has been deemed reasonable based on project documentation. As a result of recognizing the impairment loss, the entity’s profit/loss has been charged with PLN 27 351 thousand.

TAMEH HOLDING Sp. z o.o. and subsidiaries

In 2014 the TAURON Group entered into an agreement with the ArcelorMittal Group. The shareholders agreement states that TAMEH HOLDING Sp. z o.o. shall carry out investment and operational projects related to industrial power sector. The Agreement was concluded for the period of 15 years with possible term extension. Following the transactions concluded last year, both capital groups have held 50% of shares in TAMEH HOLDING Sp. z o.o. each.

TAMEH HOLDING Sp. z o.o. holds 100% of shares in TAMEH POLSKA Sp. z o.o. composed of: Zakład Wytwarzania Nowa and Elektrownia Blachownia contributed in kind by the TAURON Group and Elektrociepłownia in Kraków contributed in kind by the ArcelorMittal Group. Moreover, TAMEH HOLDING Sp. z o.o. holds 100% of shares in TAMEH Czech s.r.o.
7 933 (936)
Finance income 14

14. Finance income

Year ended
31 December 2015
Year ended
31 December 2014
Income from financial instruments, of which: 68 765 78 155
Interest income 60 385 51 315
Dividends 4 684 3 931
Measurement of derivative instruments 2 415
Foreign exchange differences 524
Gain on the disposal of investments 757 22 909
Other finance income 4 687 7 751
Total finance income 73 452 85 906

 

73 452 85 906
Interest expense on debt 15

15. Finance costs

Year ended
31 December 2015
Year ended
31 December 2014
Financial instrument costs, of which: (310 271) (328 555)
Interest costs (279 673) (285 474)
Surplus of impairment losses recognised (9 609) (1 878)
Measurement of derivatives (12 236)
Foreign exchange losses (14 340)
Commission relating to borrowings and debt securities (12 514) (14 013)
Net costs from realized derivative instruments (8 475) (614)
Other finance costs, of which: (57 744) (88 313)
Interest on employee benefits (44 491) (64 096)
Other finance costs (13 253) (24 217)
Total finance costs, including recognized in the statement of comprehensive income: (368 015) (416 868)
Interest expense on debt (279 673) (285 474)
Other finance costs (88 342) (131 394)
(279 673) (285 474)
Other finance costs 15

15. Finance costs

Year ended
31 December 2015
Year ended
31 December 2014
Financial instrument costs, of which: (310 271) (328 555)
Interest costs (279 673) (285 474)
Surplus of impairment losses recognised (9 609) (1 878)
Measurement of derivatives (12 236)
Foreign exchange losses (14 340)
Commission relating to borrowings and debt securities (12 514) (14 013)
Net costs from realized derivative instruments (8 475) (614)
Other finance costs, of which: (57 744) (88 313)
Interest on employee benefits (44 491) (64 096)
Other finance costs (13 253) (24 217)
Total finance costs, including recognized in the statement of comprehensive income: (368 015) (416 868)
Interest expense on debt (279 673) (285 474)
Other finance costs (88 342) (131 394)
(88 342) (131 394)
Profit (loss) before tax   (2 187 771) 1 498 215
Income tax expense 16 383 556 (312 655)
Net profit (loss)    (1 804 215) 1 185 560
    
Measurement of hedging instruments 85 932 (20 207)
Foreign exchange differences from translation of foreign entities 595 245
Income tax 16 (16 327) 3 839
Other comprehensive income subject to reclassification to
profit or loss
  70 200 (16 123)
 
Actuarial gains/(losses)   64 523 (338 594)
Income tax 16 (12 260) 64 333
Share in other comprehensive income of joint ventures (387)
Other comprehensive income not subject to reclassification to profit or loss 51 876 (274 261)
Other comprehensive income, net of tax   122 076 (290 384)
Total comprehensive income   (1 682 139) 895 176
   
Net profit (loss):   
Attributable to equity holders of the parent   (1 807 317) 1 180 893
Attributable to non-controlling interests   3 102 4 667
Total comprehensive income:   
Attributable to equity holders of the parent   (1 685 301) 890 879
Attributable to non-controlling interests   3 162 4 297
    
Basic and diluted earnings (loss) per share (in PLN): 17

17. Earnings (loss) per share

Earnings (loss) per share (in PLN) Year ended
31 December 2015
Year ended
31 December 2014
Basic and diluted, for profit (loss) for the year attributable to equity holders of the Parent (1.03) 0.67

 


Presented below is information about the earnings and number of shares which served as the basis for calculation of the basic and diluted earnings per share presented in the statement of comprehensive income.


 

Year ended
31 December 2015
Year ended
31 December 2014
Net profit (loss) for the year attributable to equity holders of the Parent (1 807 317) 1 180 893
Number of ordinary shares 1 752 549 394 1 752 549 394

 

 (1.03)  0.67