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Current Report No.: 1/2014

Title: Conclusion of annual agreements for coal supplies between ENEA Wytwarzanie S.A. and Lubelski Węgiel "Bogdanka" S.A.
Date: 2014.15.01
Report no.:  Current Report No.: 1/2014

Current Report No.: 1/2014

Date of preparation: 15.01.2014

Short name of issuer: ENEA S.A.

Subject: Conclusion of annual agreements for coal supplies between ENEA Wytwarzanie S.A. and Lubelski Węgiel "Bogdanka" S.A.

Legal basis: Article 56 item 1(2) of the Act on Offerings - current and periodic information

Content of report:

Acting pursuant to § 5 item 1(3) of the Regulation of the Minister of Finance of 19 February 2009 on current and periodic information published by issuers of securities [...], the Board of ENEA S.A. ("Issuer") informs that on 15 January 2014 the Board of ENEA Wytwarzanie S.A. ("ENEA Wytwarzanie") and Lubelski Węgiel "Bogdanka" S.A. concluded an annual agreement for the supplies of fuel coal in 2014 ("Agreement I") and an annual agreement for the supplies of fuel coal in 2015 ("Agreement II") [collectively referred to as: "Annual Agreements"].

Annual agreements were concluded as part of the realisation of the multiannual agreement the conclusion of which was notified by the Issuer in the report No. 17/2010 on 5 March 2010 and current report No. 1/2012 of 23 January 2012 ("Multiannual Agreement").

Agreement I is biding upon the parties as of 1 January 2014 till 31 December 2014 and relates to the conditions of coal supplies in 2014 for ENEA Wytwarzanie which will be realised after the termination of deliveries resulting from the annual agreement for 2013. The value of Agreement I at current prices totals to ca. PLN 767 mln net.

Agreement II is biding upon the parties as of 1 January 2015 till 31 December 2015 and relates to the conditions of coal deliveries for 2015 for ENEA Wytwarzanie. The value of Agreement II at current prices totals to ca. PLN 773 mln net.

Additionally, on 15 January 2014 the parties concluded an annex to the annual agreement for the supplies of fuel coal in 2013 ("Annex"). According to the provisions of the concluded Annex, the parties prolonged the term of the annual agreement for 2013 till 31 March 2014 and decreased the value of the annual agreement for 2013 by PLN 3.5 mln in relation to the original value.

As a result of the conclusion of Annual Agreements and Annex the value of the whole Multiannual Agreement is presently estimated at ca. PLN 10,677 mln net.

Contractual penalties are defined in concluded Annual Agreements for failure to accept or supply the volume of coal envisaged in the delivery schedule at 20% of the value of the coal in question, whereby both Parties may seek additional compensation under general rules if the contractual penalty does not compensate their loss.

The remaining terms of the Annual Agreements do not diverge from the market standards applied in contracts of this type.

The criterion for deeming the concluded agreements significant is the fact that they exceed 10% of the value of the Issuer's equity.

Having in mind the diverse and international nature of Enea SA's shareholding, and also the provisions of the Best Practices of WSE Listed Companies, Enea SA guarantees the availability of its website also in English. In case of any interpretation doubts and discrepancies between the Polish and English versions, the Polish version shall prevail.