Annual report 2020

03

Basic financials

Table. Basic figures from consolidated financial statement

In PLN thousand In EURO thousand
Basic figures from consolidated statement of comprehensive income For the year ended
31 December 2020
For the year ended
31 December 2019
For the year ended
31 December 2020
For the year ended
31 December 2019
Revenue from sales 1 183 441 1 092 489 264 503 253 961
Cost of sales -1 073 026 -910 776 -239 825 -211 720
Revenues/costs of compensation for stranded costs 29 824 -7 237 6 666 -1 682
Operating profit 157 091 104 014 35 110 24 179
Profit before tax 157 768 106 450 35 262 24 745
Net profit 125 954 83 827 28 151 19 486
Net profit for the period attributable to ordinary shareholders 123 935 82 917 27 700 19 274
Net profit for the period 1 January 2019 to non- controlling interests 2 019 910 451 212
Basic and diluted earnings per share (in PLN/EUR) 8 320 5 560 1 860 1 290
Other comprehensive income, net of tax -1 279 -684 -286 -159
Total comprehensive income 124 675 83 143 27 865 19 327
Basic figures from consolidated statement of cash flows
Net cash flows from operations 154 386 189 273 34 506 43 999
Net cash flows from investments -162 040 -164 753 -36 217 -38 299
Net cash flows from financial operations 5 543 -27 261 1 239 -6 337
Basic figure from consolidated statement of financial position As at
31 December 2020
As at
31 December 2019
As at
31 December 2020
As at
31 December 2019
Non-current assets 1 846 018 1 826 550 400 021 428 918
Current assets 1 008 295 760 055 218 492 178 480
Total assets 2 854 313 2 586 605 618 513 607 398
Non-current liabilities 660 926 703 766 143 219 165 261
Current liabilities 507 659 321 786 110 007 75 563
Equity attributable to ordinary shareholders 1 679 542 1 556 868 363 947 365 591
Equity attributable to non- controlling interests 6 186 4 185 1 340 983
Equity 1 685 728 1 561 053 365 287 366 574
Number of shares (in thousands) 14 900 14 900 14 900 14 900
Book value and diluted book value per share (in PLN/EUR) 113 140 104 770 24 520 24 600

Exchange rates of euro used for translation of selected financial data

  • Statement of financial position items - average exchange rate announced by NBP as of 31 December 2020 – 4.6148
  • Statement of comprehensive income and cash flows items - arithmetic average of average exchange rates announced by NBP as at the end of each month of the period from 1 January to 31 December 2020 – 4.4742
  • Statement of financial position items - average exchange rate announced by NBP as of 31 December 2019 – 4.2585
  • Statement of comprehensive income and cash flows items - arithmetic average of average exchange rates announced by NBP as at the end of each month of the period from 1 January to 31 December 2019 r. – 4.3018

Table. Basic ratios (consolidated data)

(%) from 1 January to
31 December 2020
from 1 January to
31 December 2019
Return on assets (ROA) 4 41 3 24
Return on equity (ROE) 7 47 5 37
Return on capital employed (ROCE) 9 32 6 70

Analysis of consolidated net result

Chart. Consolidated financial result of KOGENERACJA S.A. Group (in PLN million)

Elimination of intragroup transactions (IT) refers to consolidation adjustments. (-0.1 MPLN).

Chart. Analysis of consolidated net result in 2020 compared to 2019



The consolidated net result of 126 MPLN was higher than in 2019 by 42.2 MPLN mainly due to:

    • -71.3 MPLN - lower result in sales:
    • +90.9 MPLN higher sales revenues,
    • -162.4 MPLN higher cost of sales,
  • +37.0 MPLN - decrease in KDT (compensation) costs; change in projected electricity prices to calculate estimated KDT compensations for 2019-2024,
  • -9.9 MPLN higher sales and management costs,
  • +97.3 MPLN – higher result in other operations, mainly from selling the CO2 emission allowances received from the pool of allowances undistributed in previous years,
  • -1.7 MPLN – lower result in financial operations; lower revenue from financial operations, -2.7 MPLN lower finance costs: +1.0 MPLN,
  • -9.2 MPLN – higher income tax.


  • Chart. Consolidated revenues
    Higher sales revenues as compared to 2019 by 90.9 MPLN (+8%), mainly due to:
    • +50.4 MPLN higher revenues from the sale of heat, including 45.2 MPLN in KOGENERACJA S.A., and 5.2 MPLN in EC Zielona Góra S.A.; Volume of heat sales:: an increase of 2% in KOGENERACJA S.A. and a 1% drop in EC Zielona Góra S.A. Price: positive impact of the increase in average heat prices.
    • +3.3 MPLN – higher revenues from energy sales, including
      • +24.1 MPLN – higher electricity sales price in EC Zielona Góra S.A. and a 4% lower sales volume,
      • -20.8 MPLN - lower electricity sales revenues in the Parent Company (approx. 10% higher electricity sales price and 2% lower sales volume)
    • -0.5 MPLN lower revenues from the sale of certificates in KOGENERACJA S.A.,
    • +36.6 MPLN; higher revenues from the sale of goods and materials, including mainly: higher revenues from the resale of electricity (by 17.9 MPLN) and higher revenues from selling the CO2 emission certificates (by 19.4 MPLN),EC Zielona Góra S.A.,
    • -0.1 MPLN - lower other revenues.

    Consolidated fixed and variable costs


    Chart. Fixed costs



    Fixed costs were higher than in 2019 by 31.1 MPLN (9%).

    Staff costs increased by 2.1 MPLN. The main cause for remuneration increase was the higher number of employees. Number of employees at KOGENERACJA S.A. was higher by 47 positions (number of employees as at 31 December 2020 – 405 persons, number of employees as at 31 December 2019 – 358 persons, average employment in 2020 – 373 persons, average employment in 2019 – 351 persons). Employment growth in 2020 was an effect of moving to the Company pursuant to Art. 231 of Act of Labor as of 1 July 2020 the employees employed in the field of asset maintenance in the local branches of PGE Energia Ciepła S.A.

    Repairs costs increased by 3 MPLN due to bigger scope of repairs in 2020 in comparison to 2019. Increase in overhaul costs in the Parent Company by 1 MPLN and by 2 MPLN in EC Zielona Góra S.A.

    Depreciation increased by 18.3 MPLN. + 15 MPLN in KOGENERACJA S.A. due to the purchase of new property, plant and equipment (increase by 9.6 MPLN) and changes in the useful lives of property, plant and equipment (increase by 5.4 MPLN), +3 MPLN in EC Zielona Góra S.A.

    Costs of services increased by 8 MPLN, owing to higher costs of supporting services.

    Chart. Variable costs


    Variable costs were higher by 99.5 MPLN compared to 2019.

    The costs of CO2 shortage and purchase increased by 99.5 MPLN (73.6 MPLN IN KOGENERACJA S.A., 25.9 MPLN in EC Zielona Góra S.A.). The increase in costs resulted from two factors: a higher purchase price of missing allowances and a higher allowance shortage.
    The average allowance purchase price was more than twice as high as in 2019. Free CO2 allowances received in 2020 covered 9.5% of the total emissions: 11% of emission in KOGENERACJA S.A. and 6% in EC Zielona Góra S.A.; CO2 allowances received in 2019 covered approx. 20% of the total emissions: 24% in KOGENERACJA S.A. and 7% in EC Zielona Góra S.A. CO2 emission in the Group was lower by approx. 4% than in 2020.

    Fuel costs increased by 1.6 MPLN:
    • -1.2 MPLN; higher coal purchase costs: +11.6 MPLN lower volume of burnt coal (in 2020 – 15,744 TJ, in 2019: 16 600 TJ), -12.8 MPLN higher coal price by about 13%,
    • -3,5 MPLN; higher costs of biomass consumption:-4.1 MPLN higher volume of burnt biomass (in 2020: 568 TJ, in 2019: 415 TJ), +0.6 MPLN 9% lower biomass price,
    • +3.1 MPLN; lower costs of gas consumption in EC Zielona Góra S.A. due to lower volume and higher price of consumption and lower costs of gas consumption In KOGENERACJA S.A. due to higher price of consumption in KOGENERACJA S.A., +2.8 MPLN lower gas price, -0.3 MPLN lower volume of gas consumed.
    Other variable costs increased by 11.8 MPLN:
    • -4,3 mln zł; increase in certificate redemption costs;
    • -7,7 mln zł; increase in other costs related to energy purchase;
    • +0,2 mln zł; various decreases.
    Chart. Consolidated financial flows