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UPDATE 1-Poland's Tauron increases net profit on impairment reversal
May 10, 2017 / 4:40 PM / 7 months ago

UPDATE 1-Poland's Tauron increases net profit on impairment reversal

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WARSAW, May 10 (Reuters) - Polish state-run power producer Tauron on Wednesday reported first-quarter net profit of 640 million zlotys ($165 million), against 323 million zlotys a year earlier, thanks to a reversed impairment related to a heating plant project.

The net profit was in line with Tauron’s estimates released in April.

Tauron and state-run gas company PGNiG plan to build a 400 megawatt gas-fired unit in the Stalowa Wola heat-power plant. The project faced financial problems and the companies had to write down its value a year ago.

However, Tauron and PGNiG reached an agreement on completing the project in October last year, enabling Tauron to reverse the impairment in the first quarter of 2017.

“Such significant one-off events should not be expected in the coming quarters,” Tauron Chief Financial Officer Marek Wadowski said in a statement.

He added that rising carbon emission costs and pressure on coal prices could have a negative effect on future results. ($1 = 3.8764 zlotys) (Reporting by Agnieszka Barteczko; Editing by Elaine Hardcastle and David Goodman)

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