In 2015 the TAURON Group generated sales revenues totalling nearly PLN 18.4 billion, close to the previous year’s performance.
The spinoff of Zakład Wytwarzania Nowa and Elektrownia Blachownia from the TAURON Group in December 2014 and their transfer to TAMEH Polska cut sales revenues but this was offset by higher sales revenues in the Generation Segment (up 8.3%), the Distribution Segment (up 6.2%) and the Sales Segment (up 4.6%).
The TAURON Group’s EBITDA in 2015 was down 4.6% from 2014 to PLN 3.5 billion. The Distribution Segment generates the bulk of the Group’s EBITDA (67%), followed by the Generation Segment (21%) and the Sales Segment (11%).
The Distribution Segment’s EBITDA rose 9% from 2014 on growing volumes of distributed energy and 4% higher average rate of distribution services. The Generation Segment’s EBITDA fell by nearly 5% yoy caused by provisions for the shortfall of CO2 emission allowances, lower revenues under the Operating Power Reserve and the spinoff of ZW Nowa to TAMEH Polska.
The Distribution Segment’s improved profitability offset the EBITDA decline in the Mining Segment caused by the challenging circumstances in mining, lower coal prices and other operating expenses that were on the rise.
In Q1 2016 impairment tests were performed for generation assets producing electricity and heat. This led to write-offs of tangible and intangible fixed assets and goodwill in the Generation Segment totalling PLN 3.6 billion in the TAURON Group’s consolidated financial statements. These write-offs were for various capacity power units (150 and 200 MW in particular), biomass-fired units and cogeneration units.
In the 2015 standalone financial statements of TAURON Polska Energia S.A. a PLN 4.9 billion impairment was taken on the carrying value of shares in TAURON Wytwarzanie S.A. and TAURON Ciepło Sp. z o.o.
These impairments were caused by the persistently unfavourable market conditions for electricity generators.
Moreover, due to Elektrociepłownia Stalowa Wola S.A. rescinding the contract with the general contractor for the CCGT unit at Stalowa Wola (a joint venture with PGNiG), a provision totalling PLN 183 million was set up in the standalone and consolidated financial statements.
These impairments and provisions contributed to the TAURON Group reporting a net loss in 2015 of PLN 1.8 billion and TAURON Polska Energia S.A. (the parent) reporting a net loss of PLN 3.5 billion.