26.3 Cash flows from financing activities

Proceeds from share issue

The raising of proceeds from the share issue in 2022 in the amount of approximately PLN 3,197 million was aimed at supporting the PGE Capital Group’s investments in the area of development of renewable energy sources, decarbonisation through development of low-carbon sources and development of the distribution segment.

The funds raised from the share issue may only be used for investments in the three areas described above. The manner of disbursement of the funds from the share issue is subject to detailed reporting and periodical verification by a certified auditor.

Proceeds from share issue for non-controlling shareholders

Proceeds of PLN 129 million in the current period and PLN 33 million in the comparative period relate to half of the payments made by Ørsted for the acquisition of shares and equity increases in contractual joint operations, i.e. EWB2 and EWB3.

The amount of PLN 28 million relates to equity increases effected by shareholders in the companies PGE Baltica 7 sp. z o.o. and PGE Inwest 12 sp. z o.o.

Proceeds from obtained loans and credits

In the current reporting period, PGE S.A. used available credits in the total amount of PLN 8,365 million (PLN 2,200 million in 2022). Additionally, the companies of the Heat Generation segment obtained loans and credits from environmental funds in the amount of approximately PLN 316 million (PLN 21 million in 2022).

Repayment of loans, credits and finance leases

In the current reporting period, PGE S.A. repaid credits in the total amount of PLN 3,133 million (PLN 3,985 million in 2022). In addition, the company PGE Energetyka Kolejowa sp. z o.o. repaid its debt under a credit from before the acquisition date in the amount of PLN 3,028 million.

Payments of the main part of lease liabilities amounted to PLN 94 million in the current period and PLN 47 million in the previous period.

Interest paid

In the current reporting period, the item mainly includes interest on loans and credits of approximately PLN 635 million, on bonds of PLN 139 million, on financial instruments (CCIRS and IRS) of (-) PLN 182 million, commissions on guarantees and sureties related to credits of PLN 42 million, on lease liabilities of PLN 68 million.

In 2022, the item included mainly interest on loans and credits in the amount of PLN 270 million, on bonds in the amount of PLN 99 million, on financial instruments (CCIRS and IRS) in the amount of PLN (-) 65 million and on lease liabilities in the amount of PLN 41 million.