PGNiG: Information on the result of asset impairment tests at PGNiG Group

The Management Board of Polskie Górnictwo Naftowe i Gazownictwo SA (“PGNiG”) announces that impairment losses recognised following tests for asset impairments will reduce PGNiG Group’s consolidated operating profit for Q4 2020 by approximately PLN 0.65bn, including PLN 0,56bn in Exploration & Production segment.
The abovementioned amount includes: costs of dry wells and seismic written off in the amount of approx. PLN 0.06bn, net impairment losses recognized on tangible assets in the amount of approx. PLN 0.29bn and tangible assets under construction in the amount of approx. PLN 0.30bn.
Impairment losses are recognised after an assessment of the recoverable amounts of assets, based on a future cash flow analysis – in particular based on current and forecasted hydrocarbon price paths on international markets.
The value presented above is an estimate and therefore may differ from the actual one, due to be disclosed with the publication of the consolidated annual report for full year of 2020.