Purchase and sale of electricity.
The Group presents segment information in accordance with IFRS 8 Operating Segments. Operating segments correspond to the reporting segments and are not aggregated. The Group’s activities are managed in operating segments that are distinct in terms of products and services. ENEA Group reports four operating segments and other activity, as shown below.
Electricity distribution and transmission services.
Generation of electricity from conventional and renewable sources, generation of industrial heat.
Production and sale of coal, companies providing support services to mines.
Maintenance and modernisation of road lighting equipment, transport services, repair and construction services.
Segment revenue is revenue generated from sales to external customers and transactions with other segments that can be directly attributed to the given segment. In 2021, within the mining segment, external customers whose shares in the Group’s external sales exceeded 10% included: Grupa Azoty Zakłady Azotowe „Puławy” (30.0%), D.Trading International S.A. (24%) and Energa Elektrownie Ostrołęka S.A. (17.0%). Segment costs include the cost of sales to external customers and costs of transactions with other segments within the Group that result from the operating activities of a given segment and can be directly attributed to the given segment. Market prices are applied to inter-segment transactions, which makes it possible for units to generate margins sufficient to independently operate on the market.
In analysing segment results, the Group especially focuses on EBITDA. EBITDA is defined as operating profit (calculated as result before tax adjusted by the share of results of associates and jointly controlled entities, impairment of financial assets at amortised cost, impairment of investments in jointly controlled entities, finance income, dividend income and finance costs) plus amortisation and impairment of non-financial non-current assets. Rules for determining segment results and segment assets and liabilities are in compliance with the accounting rules used in preparing consolidated financial statements.
Information on geographic segments
The Group’s activities in 2021 and 2020 were in one geographic segment, i.e. in Poland, and all of its assets were located in Poland.
Segment results:
Segment results for the period from 1 January to 31 December 2021 are as follows:
| TRADE | DISTRIBUTION | GENERATION | MINING | OTHER ACTIVITY | EXCLUSIONS | TOTAL | |
| Net revenue from sales | 8 001 642 | 3 238 403 | 9 362 775 | 476 700 | 117 151 | − | 21 196 671 |
| Inter-segment sales | 3 204 918 | 41 121 | 835 797 | 1 886 441 | 380 078 | (6 348 355) | − |
| Total net revenue from sales | 11 206 560 | 3 279 524 | 10 198 572 | 2 363 141 | 497 229 | (6 348 355) | 21 196 671 |
| Revenue from operating leases and subleases | − | − | 859 | 8 171 | 5 354 | (408) | 13 976 |
| Revenue from sales and other income | 11 206 560 | 3 279 524 | 10 199 431 | 2 371 312 | 502 583 | (6 348 763) | 21 210 647 |
| Total costs | (1334 158) | (2 555 482) | (9 031 967) | (1 975 151) | (473 071) | 6 307 094 | (19 062 735) |
| Segment result | (127 598) | 724 042 | 1 167 464 | 396 161 | 29 512 | (41 669) | 2 147 912 |
| Depreciation/amortisation | (3 060) | (668 886) | (408 890) | (401 462) | (74 905) | ||
| Impairment losses on non-financial non-current assets | − | − | (26 114) | (652) | (3 358) | ||
| Segment result – EBITDA | (124 538) | 1 392 928 | 1 602 468 | 798 275 | 107 775 | ||
| % of revenue from sales and other income | (1,1%) | 42,5% | 15,7% | 33,7% | 21,4% | ||
| Unallocated costs at Group level (administration expenses) | (80 545) | ||||||
| Operating profit | 2 067 367 | ||||||
| Finance costs | (214 803) | ||||||
| Finance income | 125 106 | ||||||
| Dividend income | 227 | ||||||
| Impairment of financial assets at amortised cost | (15 825) | ||||||
| Share of results of associates and jointly controlled entities | 192 561 | ||||||
| Income tax | (368 163) | ||||||
| Net profit | 1 786 470 | ||||||
| Share of profit attributable to non-controlling interests | 107 934 | ||||||
Segment results for the period from 1 January to 31 December 2020 are as follows:
| TRADE | DISTRIBUTION | GENERATION | MINING | OTHER ACTIVITY | EXCLUSIONS | TOTAL | |
|
Net revenue from sales |
6 749 844 |
3 190 313 |
7 855 482 |
267 094 |
113 772 |
− |
18 176 505 |
| Inter-segment sales | 3 585 598 | 37 829 | 565 189 | 1 545 731 | 354 936 | (6 089 283) | − |
| Total net revenue from sales | 10 335 442 | 3 228 142 | 8 420 671 | 1 812 825 | 468 708 | (6 089 283) | 18 176 505 |
| Compensations | 3 284 | − | − | − | − | − | 3 284 |
| Revenue from operating leases and subleases | − | − | 603 | 9 287 | 4 925 | (50) | 14 765 |
| Revenue from sales and other income | 10 338 726 | 3 228 142 | 8 421 274 | 1 822 112 | 473 633 | (6 089 333) | 18 194 554 |
| Total costs | (10 355 101) | (2 548 287) | (10 864 630) | (1 694 685) | (459 548) | 6 093 093 | (19 829 158) |
| Segment result | (16 375) | 679 855 | (2 443 356) | 127 427 | 14 085 | 3 760 | (1 634 604) |
| Depreciation/amortisation | (1 540) | (633 451) | (569 439) | (336 549) | (73 371) | ||
| Impairment losses on non-financial non-current assets | − | − | (3 403 993) | (6 161) | − | ||
| Segment result – EBITDA | (14 835) | 1 313 306 | 1 530 076 | 470 137 | 87 456 | ||
| % of revenue from sales and other income | (0,1%) | 40,7% | 18,2% | 25,8% | 18,5% | ||
| Unallocated costs at Group level (administration expenses) | (71 655) | ||||||
| Operating loss | (1 706 259) | ||||||
| Finance costs | (346 336) | ||||||
| Finance income | 54 346 | ||||||
| Dividend income | 283 | ||||||
| Impairment of financial assets at amortised cost | (144 014) | ||||||
| Share of results of associates and jointly controlled entities | (332 361) | ||||||
| Impairment of investments in associates and jointly controlled entities | (129 208) | ||||||
| Income tax | 369 212 | ||||||
| Net loss | (2 234 337) | ||||||
| Share of profit attributable to non-controlling interests | 34 075 |
Other information concerning segments as at 31 December 2021 and for the 12-month period ending on that day is as follows:
| Trade | Distribution | Generation | Mining | Other activity | Exclusions | Total | |
| Property, plant and equipment | 14 649 | 10 281 878 | 6 006 882 | 3 097 243 | 356 482 | (541 829) | 19 215 305 |
| Trade and other receivables | 2 408 036 | 388 734 | 1 146 605 | 326 336 | 109 769 | (994 551) | 3 384 929 |
| Costs related to the conclusion of agreements | 22 832 | – | – | – | – | – | 22 832 |
| Assets arising from contracts with customers | 200 773 | 243 664 | 225 | – | − | (31 754) | 412 908 |
| Total | 2 646 290 | 10 914 276 | 7 153 712 | 3 423 579 | 466 251 | (1 568 134) | 23 035 974 |
| ASSETS excluded from segments | 11 591 673 | ||||||
| including property, plant and equipment | 10 170 | ||||||
| including trade and other receivables | 2 077 | ||||||
| TOTAL ASSETS | 34 627 647 | ||||||
| Trade and other payables | 466 450 | 614 545 | 946 396 | 329 537 | 114 222 | (596 427) | 1 874 723 |
| Liabilities arising from contracts with customers | 475 985 | 402 652 | 10 | 9 704 | 1 863 | (429 878) | 460 336 |
| Total | 942 435 | 1 017 197 | 946 406 | 339 241 | 116 085 | (1 026 305) | 2 335 059 |
| Equity and liabilities excluded from segments | 32 292 588 | ||||||
| including trade and other payables | 2 688 784 | ||||||
| TOTAL EQUITY AND LIABILITIES | 34 627 647 | ||||||
| For the year ended 31 December 2021 | |||||||
| Investment expenditures on property, plant and equipment and intangible assets | 769 | 990 619 | 438 666 | 450 180 | 34 839 | (42 874) | 1 872 199 |
| Investment expenditures on property, plant and equipment and intangible assets excluded from segments | − | ||||||
| Depreciation/amortisation | 3 060 | 668 886 | 408 890 | 401 462 | 74 905 | (21 170) | 1 536 033 |
| Amortisation excluded from segments | 3 253 | ||||||
| Recognition/(reversal/use) of impairment losses on receivables | 6 051 | (2 629) | (16 855) | 2 528 | (464) | 308 | (11 061) |
| Recognition of impairment losses on non-financial non-current assets | – | – | 26 114 | 652 | 3 358 | – | 30 124 |
Other information concerning segments as at 31 December 2020 and for the 12-month period ending on that day is as follows:
| Trade | Distribution | Generation | Mining | Other activity | Exclusions | Total | |
| Property, plant and equipment | 14 392 | 9 889 504 | 5 978 596 | 3 158 735 | 368 500 | (515 537) | 18 894 190 |
| Trade and other receivables | 1 421 069 | 313 950 | 735 455 | 268 999 | 93 293 | (630 881) | 2 201 885 |
| Costs related to the conclusion of agreements | 24 684 | – | – | – | – | – | 24 684 |
| Assets arising from contracts with customers | 127 988 | 206 426 | 18 | – | 311 | (12 297) | 322 446 |
| Total | 1 588 133 | 10 409 880 | 6 714 069 | 3 427 734 | 462 104 | (1 158 715) | 21 443 205 |
| ASSETS excluded from segments | 8 446 658 | ||||||
| including property, plant and equipment | 9 532 | ||||||
| including trade and other receivables | 2 687 | ||||||
| TOTAL ASSETS | 29 889 863 | ||||||
| Trade and other payables | 338 466 | 526 855 | 625 379 | 244 462 | 204 054 | (351 012) | 1 588 204 |
| Liabilities arising from contracts with customers | 324 455 | 222 155 | – | 1 329 | 1 689 | (292 166) | 257 462 |
| Total | 662 921 | 749 010 | 625 379 | 245 791 | 205 743 | (643 178) | 1 845 666 |
| Equity and liabilities excluded from segments | 28 044 197 | ||||||
| including trade and other payables | 582 515 | ||||||
| TOTAL EQUITY AND LIABILITIES | 29 889 863 | ||||||
| For the year ended 31 December 2020 | |||||||
| Investment expenditures on property, plant and equipment and intangible assets | 627 | 1 128 385 | 531 754 | 612 461 | 47 395 | (55 566) | 2 265 056 |
| Investment expenditures on property, plant and equipment and intangible assets excluded from segments | − | ||||||
| Depreciation/amortisation | 1 540 | 633 451 | 569 439 | 336 549 | 73 371 | (18 530) | 1 595 820 |
| Amortisation excluded from segments | 2 243 | ||||||
| Recognition/(reversal/use) of impairment losses on receivables | 4 095 | (11 429) | (10 143) | (1 100) | 445 | (117) | (18 249) |
| Recognition of impairment losses on non-financial non-current assets | – | – | 3 403 993 | 6 161 | – | – | 3 410 154 |