Additional information to the extended consolidated ... - tauron

TAURON Polska Energia S.A.
Additional information to the extended consolidated financial report of the TAURON Group for the 1 st quarter of 2011
Coal mining
In the first quarter of 2011, total supplies revenues in the Mining segment amounted to PLN
284.1 million, which represents a decrease of about 5.3% compared to the same period of 2010,
EBIT of the Mining segment in the first quarter of 2011 amounted to PLN -4.4 million, and EBITDA
PLN 21.7 million. In the same period of the previous year EBIT amounted to PLN 43 million, and
EBITDA amounted to PLN 69.8 million. The decrease in EBIT and EBITDA is a consequence of nonexecution
of the plan of coal mining due to a transient unfavourable mining and geological conditions.
The consequence of non-execution of the mining plan is lower production and sales of coal.
Generating electricity and heat from conventional sources
In the first quarter of 2011, total supplies revenues in the Generation segment amounted to
PLN 1 680.6 million, which represents an increase of about 18.7% compared with first quarter of 2010.
The increase in revenues is primarily due to increased volume of sales of electricity.
EBIT of the Generation segment in the first quarter of 2011 amounted to PLN 209.5 million, and
EBITDA amounted to PLN 352.2 million. In the same period of the previous year EBIT amounted to
PLN 184.9 million, while EBITDA amounted to PLN 322.4 million. Higher results are primarily from the
increase in revenues from the sales of electricity and reduction of fixed costs.
Generating electricity from renewable sources
In the first quarter of 2011, total sales revenues in the RES segment amounted to PLN 51.6
million, which represents an increase of about 63.1% in comparison with the first quarter of 2010.
The EBIT segment in the first quarter of 2011 amounted to PLN 34.1 million and EBITDA amounted to
PLN 40.1 million. In the same period of the previous year EBIT amounted to PLN 13.9 million, and
EBITDA to PLN 19.3 million. The increase in revenues, EBIT and EBITDA is a consequence of the
implementation of increased electricity sales and property rights (higher generation is derived from
favorable weather conditions), as well as sales of those products at higher prices. Moreover, in the first
quarter of 2010 (and by the end of September 2010) in RES Segment‟s revenues and in results were
not included revenues from property rights acquired from the production of TAURON‟s hydro-electric
power plants, which were redeemed in connection with the sale of electricity to end-users. After
division of the TAURON Sprzedaż, organized part of the company associated with the generation of
electricity from renewable energy sources (hydroelectric plants) and the acquisition of property by
TAURON Ekoenergia, i.e. after the fourth quarter of 2010, these revenues are presented as income of
the RES Segment.
Distribution of electricity
In the first quarter of 2011, revenues from sales in the Distribution segment amounted to PLN
189.5 million, which represents an increase of approximately 3.8% compared with the first quarter of
2010.
The EBIT of the Distribution segment in the first quarter of 2011 amounted to PLN 167.4 million,
compared to PLN 117 million in the same period the previous year. EBITDA achieved the level of PLN
328.3 million, which was higher by PLN 48.8 million (17.5%) than achieved in the first quarter of 2010.
The decisive influence on the result obtained was favorable growth in sales volume of distribution
services. For the improvement in the volume of supply is mainly responsible the growth in demand for
electricity by customers using high and medium voltage and an increase in the number of consumers
in these tariff groups.
Energy and other energy market products supplies
In the first quarter of 2011, total sales revenues in the segment Trade (Supply) amounted to
PLN 3 472.4 million, which represents an increase of about 12.2% compared to the same period in
2010. This is a result of increased electricity demand of existing customers and acquired by the Group
new electricity customers.
The EBIT of the Trade segment in the first quarter of 2011 amounted to PLN 92.4 mln, and EBITDA
amounted to PLN 94.5 million. In the same period of the previous year EBIT amounted to PLN 99.9
mln, while EBITDA to PLN 101.4 million. Comparable (managerial), value of EBIT and EBITDA for the
first quarter of 2010 would be by about PLN 12.6 million lower - for the outcome of the Supply
Segment during this period a valuation of property rights obtained from the RES production of
TAURON Sprzedaż had a positive impact, which had been waived in order to meet obligations. After
18