19. Equity

SIGNIFICANT ACCOUNTING PRINCIPLES
Equity Equity is recognised at par value, divided into its types and in accordance with the legal regulations and the provisions of company statutes. In the consolidated financial statements, the reserve and supplementary capitals are those shown in the parent company’s separate financial statements. Hedging reserve, foreign exchange differences from translation and retained earnings include both the components of the parent company’s equity and respective portions of equity of subsidiaries, established in accordance with the consolidation principles. In the consolidated statement of financial position, equity is presented broken down into: equity attributable to shareholders of the parent company, equity attributable to non-controlling interests.

SIGNIFICANT ACCOUNTING PRINCIPLES

Equity
Equity is recognised at par value, divided into its types and in accordance with the legal regulations and the provisions of company statutes.
In the consolidated financial statements, the reserve and supplementary capitals are those shown in the parent company’s separate financial statements. Hedging reserve, foreign exchange differences from translation and retained earnings include both the components of the parent company’s equity and respective portions of equity of subsidiaries, established in accordance with the consolidation principles.
In the consolidated statement of financial position, equity is presented broken down into:

equity attributable to shareholders of the parent company,
equity attributable to non-controlling interests.

The objective of equity management is to ensure a secure and effective financing structure that takes into account operational risk, investment expenditure, as well as the interests of shareholders and debt investors. Equity is managed at the Group level.

In accordance with the common practice, the Group monitors the net debt to EBITDA ratios at the level of the whole PGE Capital Group. Net debt is understood as short- and long-term financial debt (interest-bearing credits and loans, bonds and other debt instruments, as well as lease, reverse and recourse factoring liabilities), less cash and cash equivalents and short-term deposits. Restricted cash is not included in the calculation of net debt. The Group’s aim is to maintain its investment grade credit ratings. Given the on-going investment programme, financial leverage is expected to increase in the coming years. The net consolidated debt to consolidated EBITDA ratio is a central element of the Group’s financial forecasts and plans.

	Year ended 31 December 2023	Year ended 31 December 2022
Net debt / EBITDA	1.11	-0.31x
Net debt/equity	0.23	-0.05x

Tools

Next page

Previous page

19. Equity