27/01/2023 22:182/2023 – Completion of the Cyclical Review of Long-Term Contracts by Trakcja S.A. for Q4 2022
The Management Board of Trakcja S.A. (the “Company”, “Issuer”) announces that today it has completed the cyclical review of long-term contracts for the fourth quarter of 2022, i.e., from October 1 to December 31, 2022, in preparation for the individual financial statements of the Company for the year ended December 31, 2022. Accordingly, the Management Board provides public information on the impact of this review on the Company’s financial results for this period.
As a result of the cyclical review of contracts, their budgets were updated concerning their nature, amounts, timing, and uncertainties regarding revenues and cash flows arising from their execution. During the budget updates, an analysis of opportunities and threats was conducted, identifying and accounting for technical, execution, liquidity risks, and delays in contract completion.
In Q4 2022, the total impact of the budget updates on the Company’s gross result was positive, amounting to PLN 1,381 thousand. The main factors contributing to the amount of the update included:
- Return to the assumption of full execution of a railway contract due to the removal of obstacles preventing its completion, including anticipated costs of extension.
- Inclusion of risk-weighted values of contractual penalties due to received debit notes and deductions.
- Inclusion of increased costs related to the necessity to change contracted subcontractors.
- Update of cost estimates and effects of anticipated court proceedings.
At the same time, the positive impact on the gross result in Q4 2022 included:
- Recognition of revenues from claims, including those related to the contract mentioned in point 1.
- Mitigation of inflationary pressures related to investment costs.
- Positive impact from implemented operational restructuring actions.
- Positive effects related to obtaining a loan and the release of funds from capital injection, as previously reported in current reports No. 75/2022 and 86/2022.
- Increase in contractual valuation values.
Preliminary financial results will be announced following the completion of data collection and initial closure of accounting books.
The final financial results of the Company and the Group will be included in the individual and consolidated annual report for the year ended December 31, 2022, which will be published on April 6, 2023.
Legal Basis:
Article 17(1) MAR
