PGE Group consists of the parent, PGE Polska Grupa Energetyczna S.A., along with 77 consolidated subsidiaries. Also subject to consolidation are 2 entities constituting joint operations, 3 associates and 1 jointly controlled entity. For additional information about the entities included in the consolidated financial statements please refer to note 1.3.
These consolidated financial statements of PGE Group cover the period from January 1, 2021 to December 31, 2021 and include comparative data for the period from January 1, 2020 to December 31, 2020.
The financial statements of all subordinated entities were prepared for the same reporting period as the financial statements of the parent company, using consistent accounting principles. Companies acquired in the course of the financial year were the exception, preparing financial data for the period from the moment when PGE Group obtained control.
PGE Group companies’ core activities are as follows:
- production of electricity,
- distribution of electricity,
- wholesale and retail trade in electricity, energy origin rights, CO2 emission allowances and natural gas,
- production and distribution of heat,
- provision of other services related to these activities
Business activities are conducted under appropriate concessions granted to specific PGE Group companies. PGE Group operates predominately in Poland.
These financial statements were prepared under the assumption that the key Group companies will continue operating as a going concern for at least 12 months from the reporting date. PGE Obrót S.A. reported negative equity as at December 31, 2021, largely due to negative changes on the retail electricity market. PGE Obrót S.A. has access to financing through PGE S.A., in connection with which this company’s going concern assumption is justified.
ENESTA sp. z o.o. reported a loss in 2021 and showed negative equity as of December 31, 2021. In these financial statements, PGE Group recognised appropriate provisions related to restructuring and possible claims against ENESTA S.A.
Aside from the circumstances indicated above, at the date of the approval of these financial statements, there is no evidence indicating that the going concern of significant Group companies is endangered.