Integrated report 2021

7.3 Other operating income and costs


Other operating income and costs

Other operating income and costs are recognised in the financial statements in accordance with the prudence principle and commensurability principle.

Year ended
December 31, 2021
Year ended
December 31, 2020
Measurement and exercise of derivatives, including: 2,896 170
– CO2 2,894 155
– Coal 2 15
Effect of change in rehabilitation provision 1,463 (306)
(Creation)/reversal of other provisions (352) (21)
(Creation)/reversal of impairment losses on receivables (83) (105)
Penalties, fines and compensations received 69 149
Gain on sale of property, plant and equipment / intangible assets 41 31
Grants received 32 34
Surpluses / asset disclosures 24 9
Donations granted (18) (19)
Property, plant and equipment/intangible assets and other infrastructure received free-of-charge 17 15
Liquidation of property, plant and equipment/intangible assets (14) (8)
Damage / failure removal (9) (7)
Other (9) (8)


In order to optimise financial flows, the Group decided to changed its hedging strategy for CO2 emission allowances and the rolling of certain contracts concerning these allowances. As a result of this strategy, purchase contracts with delivery in December 2021, with a total volume of 19.6 million, were closed and replaced by contracts with delivery in the first quarter of 2022. The conclusion of opposite contracts caused the existing purchase contracts, with a total volume of 19,6 million, not to be used for the Group’s redemption purposes. In connection with the above, these contracts – and the opposite contracts – were measured at fair value in accordance with IFRS 9 Financial Instruments. As a result of these operations, the Group generated PLN 2,778 million in revenue resulting from the difference between the sale price for contracts with delivery in December 2021 and the historic purchase price for these contracts. At the same time, the provision for the cost of CO2 emissions for 2021 was updated, i.e. the purchase price of allowances resulting from the new contracts was taken into account. This action had a neutral impact on the financial results for 2021.

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