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Exposure to financial liquidity risk |
Risk management |
| Financial liquidity risk is perceived as the risk that ENEA Group would have no ability to meet its payment obligations at maturity.
The aim of these activities is to reduce the likelihood of financial liquidity risk materialising by optimally using financial resources and available financing instruments. |
In its business, ENEA Group strives to ensure a stable availability of cash allowing it to meet its payment liabilities on time. Activities addressed in ENEA Group’s liquidity and liquidity risk management policy and procedure also include securing the ability to effectively respond to liquidity crises, i.e. periods of increased demand for cash.
These activities allow for uninterrupted operations in liquidity crises for a period of time that is necessary to launch emergency financing plans, aiming to supplement any funding shortages. In the financial liquidity management process, the Group focuses on activities centred around an analysis of cash flows in the short- and long-term, optimisation of working capital components and monitoring the concentration of bank account balances. In order to ensure an appropriate level of security in unpredictable situations, the Group carries out cyclical scenario analyses and develops emergency financing plans intended to ensure the capacity to supplement cash shortages. The Group centrally manages financial surpluses. Allocating surpluses is mainly done with the use of term deposits. With a view toward limiting concentration risk, investments of excess cash are diversified in terms of financial institutions. The Group works exclusively with renowned institutions having a stable position, as confirmed by ratings not below investment grade. Investment performance is monitored on an on-going basis. Activities related to financial liquidity and liquidity risk management are coordinated by ENEA S.A. In order to secure funding for on-going operations and optimise the financial surplus management process, ENEA S.A. and ENEA Group companies use cash pooling. ENEA S.A. serves as Pool Leader. Additional instruments for the financing of on-going operations that secure funding for cash pooling system participants are ENEA S.A.’s overdraft facilities. Instruments for the financing of on-going operations also include the Group’s central mechanism for raising external funding by ENEA S.A., which is subsequently distributed by ENEA S.A. within the Group. |
Continuous risk management in the aforementioned areas and the Group’s market and financial position show that financial liquidity risk remained at a negligible level for a vast majority of 2021.
In 2021, the Group recorded one event that was difficult to predict and had an impact on financial liquidity. As a result of a sudden rise in electricity prices, the Group was required to assign a considerable amount of cash to replenish collateral for electricity trading on the TGE exchange. However, this event was of a short-term nature, and the previously unplanned expenditures were covered by financial surpluses.
The Group manages liquidity risk also by maintaining open and unused credit lines, which amounted to PLN 850 000 thousand as at 31 December 2021.
The following table shows the maturities of the Group’s financial liabilities:
As at 31 December 2021
| Trade and other payables | Lease liabilities | Bank credit and bonds | Loans | Financial liabilities at fair value | Liabilities arising from contracts with customers | Total | |
|---|---|---|---|---|---|---|---|
| Book value | 4 191 685 | 596 671 | 6 586 919 | 47 886 | 265 517 | 46 108 | 11 734 786 |
| Non-discounted contractual cash flows | (4 203 225) | (1 017 083) | (7 125 538) | (51 060) | (265 517) | (46 108) | (12 708 531) |
| up to 6 months | (4 064 715) | (23 335) | (2 077 198) | (7 230) | (126 091) | (46 108) | (6 344 677) |
| 6-12 months | (3 760) | (23 633) | (259 894) | (5 678) | (121 838) | − | (414 803) |
| 1-2 years | (99 437) | (50 377) | (509 595) | (13 801) | (17 588) | − | (690 798) |
| 2-5 years | (14 280) | (133 070) | (3 500 279) | (24 351) | − | − | (3 671 980) |
| over 5 years | (21 033) | (786 668) | (778 572) | − | − | − | (1 586 273) |
As at 31 December 2020
| Trade and other payables | Finance lease liabilities | Kredyty Bank credit and bondsi obligacje | Loans | Financial liabilities at fair value | Liabilities arising from contracts with customers | Total | |
|---|---|---|---|---|---|---|---|
| Book value | 1 680 850 | 554 312 | 7 773 377 | 58 440 | 146 118 | 32 289 | 10 245 386 |
| Non-discounted contractual cash flows | (1 693 269) | (920 936) | (8 122 516) | (63 100) | (146 630) | (32 289) | (10 978 740) |
| up to 6 months | (1 544 693) | (16 154) | (572 759) | (6 742) | (43 904) | (32 289) | (2 216 541) |
| 6-12 months | (4 103) | (19 617) | (728 881) | (6 291) | (27 011) | − | (785 903) |
| 1-2 years | (104 806) | (27 474) | (2 235 670) | (13 383) | (41 688) | − | (2 423 021) |
| 2-5 years | (14 003) | (39 157) | (3 201 028) | (29 299) | (34 027) | − | (3 317 514) |
| over 5 years | (25 664) | (818 534) | (1 384 178) | (7 385) | − | − | (2 235 761) |