PGE cuts first-half profit by over PLN 11 billion. Conventional energy is to blame.

PGE has completed work on impairment tests of property, plant and equipment, in accordance with the requirements of IAS 36, in respect of the assets of the company's Conventional Generation segment and the assets of the company's Renewable Energy segment.

The PGE Capital Group's tangible assets have significantly lost value

The results of the tests carried out indicate an impairment of the carrying amount of selected tangible fixed assets of the PGE Capital Group companies in the amount of approximately PLN 9.1 billion, including:

• in the Conventional Energy segment in the amount of approximately PLN 8.7 billion ,
• in the Renewable Energy segment in the amount of approximately PLN 0.4 billion .

At the same time, in the course of the work, the need was identified to reduce the value of the deferred tax asset (in accordance with IAS 12) in the Conventional Energy segment in the amount of approximately PLN 2.5 billion .

Adjustments to the value of property, plant and equipment and deferred tax assets will be included in the consolidated financial statements of the PGE Capital Group for the first half of 2025.

The above events are non-cash in nature. They will reduce the PGE Capital Group's gross result for the first half of 2025 by approximately PLN 9.1 billion and its net result by approximately PLN 11.6 billion.

PGE Dystrybucja has laid off a number of employees in managerial positions.

On Thursday, the company announced that, as a result of audits at PGE Dystrybucja, 29 directors and deputies had been terminated . Among those dismissed was Solidarity leader Edmund Myszka, who has been critical of the changes at the company.

Since the beginning of 2024, PGE Dystrybucja has completed 16 audits, and another 17 are underway. At the same time, the company is conducting employee assessments, including those of its management staff. As a result of these audits, approximately 70 individuals, including those in senior positions, were assessed negatively in terms of their competencies and the performance of their duties.

Trade unionists are critical of the decisions of PGE Dystrybucja's management board. They claim that long-serving engineers have been stripped of their directorships at the company's Rzeszów branch.