34.
Contingent liabilities and receivables
During preparation of these consolidated financial statements of the PGNiG Group for 2014, an analysis of individual contingent items was carried out for the following purposes:
- to assess the probability of consumption/loss of economic benefits related to contingent receivables/liabilities held;
- to eliminate amounts pertaining to contingent receivables and liabilities disclosed in the statement of financial position.
As a result of the analysis, as at the end of the comparative period contingent receivables fell by PLN 193m and contingent liabilities fell by PLN 2,698m compared with the data disclosed in the consolidated financial statements of the PGNiG Group for 2013.
34.1. Contingent receivables
| As at Dec 31 2014 | As at Dec 31 2013 | |
|---|---|---|
| From related entities: | ||
| guarantees and sureties received | 1 | 1 |
| promissory notes received | 78 | 180 |
| Total contingent receivables from related entities | 79 | 181 |
| From other entities: | ||
| guarantees and sureties received | 104 | 126 |
| promissory notes received | 52 | 98 |
| other contingent assets | 154 | 189 |
| Total contingent receivables from other entities | 310 | 413 |
| Total contingent assets | 389 | 594 |
As at the end of 2014, contingent receivables declined, primarily due to an analysis of the probability of consumption of economic benefits performed as at the reporting date, and the expiry of bank guarantees and performance bonds, as well as the expiry of promissory notes securing the payment of amounts receivable for gas fuel.
34.2. Contingent liabilities
| As at Dec 31 2014 | As at Dec 31 2013 | |
|---|---|---|
| To other entities | ||
| guarantees and sureties issued* | 7 889 | 7 564 |
| promissory notes issued | 1 559 | 473 |
| other contingent liabilities | 72 | - |
| Total contingent liabilities to other entities | 9 520 | 8 037 |
| Total contingent liabilities | 9 520 | 8 037 |
| * Contingent liabilities in foreign currencies translated into the złoty at exchange rates quoted by the National Bank of Poland for December 31st 2014 | ||
The increase in contingent liabilities under guarantees and sureties issued in 2014 was primarily attributable to changes in exchange rates for the currencies in which the liabilities are denominated. The strengthening of the euro against the złoty in 2014 caused an increase in contingent liabilities related to guarantees issued by the Parent: a guarantee of repayment of liabilities under Euronotes and a performance bond provided to the Government of Norway in respect of PUI (growth by a total of PLN 99m, translated at the exchange rate quoted by the NBP for December 31st 2014). The depreciation of the złoty against the US dollar contributed to a PLN 31m increase in USD-denominated guarantees (including a performance bond in respect of National Oil Corporation of Lybia). Further, at the request of Elektrociepłownia Stalowa Wola S.A. the Parent issued a PLN 63m surety for a borrowing.
Higher contingent liabilities under promissory notes issued in 2014 were chiefly attributable to creation of security for the purpose of agreements concerning EU co-financed projects and an agreement for the provision of transmission services.