Consolidated statement
of cash flows

 

Note Year ended
31 December 2015
Year ended
31 December 2014
Cash flows from operating activities
Profit (loss) before taxation   (2 187 771) 1 498 215
Share in (profit)/loss of joint ventures (7 933) 936
Depreciation and amortization 1 832 780 1 796 917
Impairment losses on property, plant and equipment, intangible assets and goodwill 3 595 895 51 036
Interest and commissions 273 502 286 733
Other adjustments of profit before tax 329 (166)
Change in working capital 42.1

42.1. Cash flows from operating activities

Change in working capital

Year ended
31 December 2015
Year ended
31 December 2014
Change in receivables 118 806 111 716
Change in inventories 90 497 (43 868)
Change in payables excluding loans and borrowings (180 636) (234 014)
Change in other non-current and current assets (104 176) (178 409)
Change in deferred income, government grants and accruals (73 962) (67 333)
Change in provisions 141 843 (295 463)
Total (7 628) (707 371)

 

(7 628) (707 371)
Income tax paid (111 716) (308 393)
Net cash from operating activities 3 387 458 2 617 907
Cash flows from investing activities
Purchase of property, plant and equipment and intangible assets 42.2

42.2. Cash flows from investing activities

Purchase of property, plant and equipment and intangible assets

 
Year ended
31 December 2015
Year ended
31 December 2014
Purchase of property, plant and equipment (3 877 348) (2 819 090)
Purchase of intangible assets (117 145) (118 373)
Change in the balance of VAT-adjusted capital commitments 138 635 (64 088)
Change in the balance of advance payments 49 172 (298 271)
Costs of overhaul and internal manufacturing (180 912) (150 793)
Other 14 088 (13 963)
Total (3 973 510) (3 464 578)

 



 

 

Acquisition of financial assets

Expenditure for acquisition of financial assets resulted primarily from the Parent’s transfer of cash intended to finance shares in the increased issued capital of PGE EJ 1 Sp. z o.o. totalling to PLN 23 046 thousand.

Loans granted

Expenditure related to loans granted result from portions of a VAT loan extended by the Parent to the jointly-controlled entity Elektrociepłownia Stalowa Wola S.A. totalling to PLN 8 150 thousand and loans granted under agreements entered into in November and December 2015 totalling to PLN 17 950 thousand, as discussed in detail in Note 23 hereto.
(3 973 510) (3 464 578)
Purchase of financial assets 42.2

42.2. Cash flows from investing activities

Purchase of property, plant and equipment and intangible assets

 
Year ended
31 December 2015
Year ended
31 December 2014
Purchase of property, plant and equipment (3 877 348) (2 819 090)
Purchase of intangible assets (117 145) (118 373)
Change in the balance of VAT-adjusted capital commitments 138 635 (64 088)
Change in the balance of advance payments 49 172 (298 271)
Costs of overhaul and internal manufacturing (180 912) (150 793)
Other 14 088 (13 963)
Total (3 973 510) (3 464 578)

 



 

 

Acquisition of financial assets

Expenditure for acquisition of financial assets resulted primarily from the Parent’s transfer of cash intended to finance shares in the increased issued capital of PGE EJ 1 Sp. z o.o. totalling to PLN 23 046 thousand.

Loans granted

Expenditure related to loans granted result from portions of a VAT loan extended by the Parent to the jointly-controlled entity Elektrociepłownia Stalowa Wola S.A. totalling to PLN 8 150 thousand and loans granted under agreements entered into in November and December 2015 totalling to PLN 17 950 thousand, as discussed in detail in Note 23 hereto.
(29 067) (6 684)
Loans granted 42.2

42.2. Cash flows from investing activities

Purchase of property, plant and equipment and intangible assets

 
Year ended
31 December 2015
Year ended
31 December 2014
Purchase of property, plant and equipment (3 877 348) (2 819 090)
Purchase of intangible assets (117 145) (118 373)
Change in the balance of VAT-adjusted capital commitments 138 635 (64 088)
Change in the balance of advance payments 49 172 (298 271)
Costs of overhaul and internal manufacturing (180 912) (150 793)
Other 14 088 (13 963)
Total (3 973 510) (3 464 578)

 



 

 

Acquisition of financial assets

Expenditure for acquisition of financial assets resulted primarily from the Parent’s transfer of cash intended to finance shares in the increased issued capital of PGE EJ 1 Sp. z o.o. totalling to PLN 23 046 thousand.

Loans granted

Expenditure related to loans granted result from portions of a VAT loan extended by the Parent to the jointly-controlled entity Elektrociepłownia Stalowa Wola S.A. totalling to PLN 8 150 thousand and loans granted under agreements entered into in November and December 2015 totalling to PLN 17 950 thousand, as discussed in detail in Note 23 hereto.
(26 100) (18 050)
Other payments (184)
Total payments (4 028 677) (3 489 496)
Proceeds from sale of property, plant and equipment and intangible assets 36 554 47 800
Repayment of loans granted 14 500 11 700
Redemption of debt securities 21 732
Other proceeds 13 769 43 263
Total proceeds 86 555 102 763
Net cash used in investing activities (3 942 122) (3 386 733)
Cash flows from financing activities
Redemption of debt securities 42.3

42.3. Cash flows from financing activities

Redemption of debt securities

Expenditure for redemption of debt securities result from redemption of Tranche B bonds by the Parent in the amount of PLN 450 000 thousand in the year ended 2015 in accordance with the schedule.

Loans and borrowings repaid

Expenditure on repayment of loans and borrowings of PLN 140 585 thousand disclosed in the consolidated statement of cash flows result mainly from repayment of PLN 132 818 thousand of the loans granted by the European Investment Bank by the Parent.

Interest paid

Year ended
31 December 2015
Year ended
31 December 2014
Interest paid in relation to debt securities (286 692) (253 511)
Interest paid in relation to loans and borrowings (57 536) (63 591)
Interest paid in relation to the finance lease (1 237) (2 565)
Total, of which: (345 465) (319 667)
financing cash outflows (276 305) (273 392)
investing cash outflows (69 160) (46 275)

 



 

The Group’s consolidated statement of cash flows discloses borrowing costs capitalized in the current period for asset financing as expenditure for acquisition of property, plant and equipment and intangible assets in cash flows from investing activities.

Proceeds from loans and borrowings obtained by the Company

Proceeds from loans and borrowings obtained of PLN 295 000 thousand comprise a tranche of the loan granted by the European Investment Bank to the Parent under the agreement of July 2014.

Issuance of debt securities

Proceeds from issuing debt securities of PLN 310 000 thousand result from issuing bonds under the agreement with Bank Gospodarstwa Krajowego by the Parent.
(450 000) (1 148 200)
Repayment of loans and borrowings 42.3

42.3. Cash flows from financing activities

Redemption of debt securities

Expenditure for redemption of debt securities result from redemption of Tranche B bonds by the Parent in the amount of PLN 450 000 thousand in the year ended 2015 in accordance with the schedule.

Loans and borrowings repaid

Expenditure on repayment of loans and borrowings of PLN 140 585 thousand disclosed in the consolidated statement of cash flows result mainly from repayment of PLN 132 818 thousand of the loans granted by the European Investment Bank by the Parent.

Interest paid

Year ended
31 December 2015
Year ended
31 December 2014
Interest paid in relation to debt securities (286 692) (253 511)
Interest paid in relation to loans and borrowings (57 536) (63 591)
Interest paid in relation to the finance lease (1 237) (2 565)
Total, of which: (345 465) (319 667)
financing cash outflows (276 305) (273 392)
investing cash outflows (69 160) (46 275)

 



 

The Group’s consolidated statement of cash flows discloses borrowing costs capitalized in the current period for asset financing as expenditure for acquisition of property, plant and equipment and intangible assets in cash flows from investing activities.

Proceeds from loans and borrowings obtained by the Company

Proceeds from loans and borrowings obtained of PLN 295 000 thousand comprise a tranche of the loan granted by the European Investment Bank to the Parent under the agreement of July 2014.

Issuance of debt securities

Proceeds from issuing debt securities of PLN 310 000 thousand result from issuing bonds under the agreement with Bank Gospodarstwa Krajowego by the Parent.
(140 585) (169 971)
Dividends paid to equity holders of the parent   (262 882) (332 984)
Interest paid 42.3

42.3. Cash flows from financing activities

Redemption of debt securities

Expenditure for redemption of debt securities result from redemption of Tranche B bonds by the Parent in the amount of PLN 450 000 thousand in the year ended 2015 in accordance with the schedule.

Loans and borrowings repaid

Expenditure on repayment of loans and borrowings of PLN 140 585 thousand disclosed in the consolidated statement of cash flows result mainly from repayment of PLN 132 818 thousand of the loans granted by the European Investment Bank by the Parent.

Interest paid

Year ended
31 December 2015
Year ended
31 December 2014
Interest paid in relation to debt securities (286 692) (253 511)
Interest paid in relation to loans and borrowings (57 536) (63 591)
Interest paid in relation to the finance lease (1 237) (2 565)
Total, of which: (345 465) (319 667)
financing cash outflows (276 305) (273 392)
investing cash outflows (69 160) (46 275)

 



 

The Group’s consolidated statement of cash flows discloses borrowing costs capitalized in the current period for asset financing as expenditure for acquisition of property, plant and equipment and intangible assets in cash flows from investing activities.

Proceeds from loans and borrowings obtained by the Company

Proceeds from loans and borrowings obtained of PLN 295 000 thousand comprise a tranche of the loan granted by the European Investment Bank to the Parent under the agreement of July 2014.

Issuance of debt securities

Proceeds from issuing debt securities of PLN 310 000 thousand result from issuing bonds under the agreement with Bank Gospodarstwa Krajowego by the Parent.
(276 305) (273 392)
Other payments   (44 059) (156 077)
Total payments   (1 173 831) (2 080 624)
Proceeds from loans and borrowings 42.3

42.3. Cash flows from financing activities

Redemption of debt securities

Expenditure for redemption of debt securities result from redemption of Tranche B bonds by the Parent in the amount of PLN 450 000 thousand in the year ended 2015 in accordance with the schedule.

Loans and borrowings repaid

Expenditure on repayment of loans and borrowings of PLN 140 585 thousand disclosed in the consolidated statement of cash flows result mainly from repayment of PLN 132 818 thousand of the loans granted by the European Investment Bank by the Parent.

Interest paid

Year ended
31 December 2015
Year ended
31 December 2014
Interest paid in relation to debt securities (286 692) (253 511)
Interest paid in relation to loans and borrowings (57 536) (63 591)
Interest paid in relation to the finance lease (1 237) (2 565)
Total, of which: (345 465) (319 667)
financing cash outflows (276 305) (273 392)
investing cash outflows (69 160) (46 275)

 



 

The Group’s consolidated statement of cash flows discloses borrowing costs capitalized in the current period for asset financing as expenditure for acquisition of property, plant and equipment and intangible assets in cash flows from investing activities.

Proceeds from loans and borrowings obtained by the Company

Proceeds from loans and borrowings obtained of PLN 295 000 thousand comprise a tranche of the loan granted by the European Investment Bank to the Parent under the agreement of July 2014.

Issuance of debt securities

Proceeds from issuing debt securities of PLN 310 000 thousand result from issuing bonds under the agreement with Bank Gospodarstwa Krajowego by the Parent.
295 000
Issue of debt securities 42.3

42.3. Cash flows from financing activities

Redemption of debt securities

Expenditure for redemption of debt securities result from redemption of Tranche B bonds by the Parent in the amount of PLN 450 000 thousand in the year ended 2015 in accordance with the schedule.

Loans and borrowings repaid

Expenditure on repayment of loans and borrowings of PLN 140 585 thousand disclosed in the consolidated statement of cash flows result mainly from repayment of PLN 132 818 thousand of the loans granted by the European Investment Bank by the Parent.

Interest paid

Year ended
31 December 2015
Year ended
31 December 2014
Interest paid in relation to debt securities (286 692) (253 511)
Interest paid in relation to loans and borrowings (57 536) (63 591)
Interest paid in relation to the finance lease (1 237) (2 565)
Total, of which: (345 465) (319 667)
financing cash outflows (276 305) (273 392)
investing cash outflows (69 160) (46 275)

 



 

The Group’s consolidated statement of cash flows discloses borrowing costs capitalized in the current period for asset financing as expenditure for acquisition of property, plant and equipment and intangible assets in cash flows from investing activities.

Proceeds from loans and borrowings obtained by the Company

Proceeds from loans and borrowings obtained of PLN 295 000 thousand comprise a tranche of the loan granted by the European Investment Bank to the Parent under the agreement of July 2014.

Issuance of debt securities

Proceeds from issuing debt securities of PLN 310 000 thousand result from issuing bonds under the agreement with Bank Gospodarstwa Krajowego by the Parent.
310 000 3 653 234
Subsidies received 43 139 63 139
Total proceeds 648 139 3 716 373
Net cash from (used in) financing activities   (525 692) 1 635 749
Net increase / (decrease) in cash and cash equivalents   (1 080 356) 866 923
Net foreign exchange difference 1 169 (177)
Cash and cash equivalents at the beginning of the period 29

29. Cash and cash equivalents

As at 31 December 2015 As at 31 December 2014
Cash at bank and in hand 353 428 410 082
Short-term deposits (up to 3 months) 10 722 1 009 991
Other 762 836
Total cash and cash equivalents presented in the statement
of financial position, of which:
364 912 1 420 909
restricted cash 206 254 116 568
Bank overdraft (10 206) (11 918)
Cash pool (29 377) (4 481)
Foreign exchange 2 386 3 561
Total cash and cash equivalents presented
in the statement of cash flows
327 715 1 408 071


 

Restricted cash consists mainly of: cash on the account used for settling electricity trading on the Polish Power Exchange, i.e. Towarowa Giełda Energii S.A., of PLN 55 291 thousand held by companies from the Sales segment and cash on a bank account for bid bonds and deposits of PLN 127 567 thousand.
1 408 071 541 148
Cash and cash equivalents at the end of the period, of which: 29

29. Cash and cash equivalents

As at 31 December 2015 As at 31 December 2014
Cash at bank and in hand 353 428 410 082
Short-term deposits (up to 3 months) 10 722 1 009 991
Other 762 836
Total cash and cash equivalents presented in the statement
of financial position, of which:
364 912 1 420 909
restricted cash 206 254 116 568
Bank overdraft (10 206) (11 918)
Cash pool (29 377) (4 481)
Foreign exchange 2 386 3 561
Total cash and cash equivalents presented
in the statement of cash flows
327 715 1 408 071


 

Restricted cash consists mainly of: cash on the account used for settling electricity trading on the Polish Power Exchange, i.e. Towarowa Giełda Energii S.A., of PLN 55 291 thousand held by companies from the Sales segment and cash on a bank account for bid bonds and deposits of PLN 127 567 thousand.
327 715 1 408 071
restricted cash 29

29. Cash and cash equivalents

As at 31 December 2015 As at 31 December 2014
Cash at bank and in hand 353 428 410 082
Short-term deposits (up to 3 months) 10 722 1 009 991
Other 762 836
Total cash and cash equivalents presented in the statement
of financial position, of which:
364 912 1 420 909
restricted cash 206 254 116 568
Bank overdraft (10 206) (11 918)
Cash pool (29 377) (4 481)
Foreign exchange 2 386 3 561
Total cash and cash equivalents presented
in the statement of cash flows
327 715 1 408 071


 

Restricted cash consists mainly of: cash on the account used for settling electricity trading on the Polish Power Exchange, i.e. Towarowa Giełda Energii S.A., of PLN 55 291 thousand held by companies from the Sales segment and cash on a bank account for bid bonds and deposits of PLN 127 567 thousand.
206 254 116 568