Enea the owner of Połaniec Power Plant - transaction with ENGIE successfully completed

The transaction of purchasing 100 per cent of shares in ENGIE Energia Polska, the owner of Połaniec Power Plant, by Enea Group from ENGIE International Holdings B.V. was successfully closed. Enea obtained, for ca. PLN 1.26 billion, a major system power plant, which during the recent years has undergone a ca. 1.5 billion worth of an intensive modernisation programme. The taken over company is fully debt-free and will strengthen Enea on the market from the very first days.

Połaniec Power Plant comprises eight units of the total capacity of 1.9 GW. It is one of the younger system power plants in Poland and the biggest object of this type in south-east Poland. The power plant belonged to a French concern, ENGIE, and Enea submitted a purchase offer in September 2016.

– We have fully utilised the opportunity which occurred on the market. We have obtained valuable assets on favourable financial terms. Taking into account the value of the enterprise, we have paid ca. PLN 0.54 million for each modernised 1 MW capacity which satisfied the environmental standards in force. Enea obtained one of the most efficient system power plants which it will utilise for many years guaranteeing security and reliability of energy supplies to our Customers – emphasised Mirosław Kowalik, president of Enea.

– Several months of intensive work are behind us. Transactions of this type require a full engagement and professionalism of both parties. I would like to thank all people working on this project. We are facing challenges relating to the inclusion of Połaniec to the Group’s structures and developing relevant synergies – said president Kowalik.

Takeover of Połaniec Power Plant is in line with Enea Group’s priorities as they result from the development strategy. Enea gains a range of benefits with just one transaction. The Group is abruptly increasing the electricity generation capacities from 3.3 GW to 5.2 GW, of which over 200 MW is one of the largest “green units” in the world utilising biomass. Incorporating Połaniec under the Group, Enea increases energy generation from ca. 14 TWh to ca. 24 TWh and becomes a strong vice-leader on the Polish market of energy generation.  At the same time, electricity generation and sales will be balanced in the Group. The transaction also guarantees sales of  large volumes of coal mined in Enea Group - Połaniec Power Plant utilises ca. 3.9 Mt of the raw material annually which comes mainly from LW Bogdanka. Thus, the Group develops a cost- and operation-efficient Kozienice-Bogdanka-Połaniec mining and generation area based on its own raw material.

– A fully debt-free and well operating company generating a considerable level of EBITDA and positive cash flows joined Enea Group. It will have a positive impact on a growth in Enea Group’s revenue and will affect the level of EBITDA. For PLN 1.26 billion we are buying the whole enterprise which, apart from the infrastructure comprises also the working capital on the level of ca. PLN 600 million. It means that the company does not require our support within this scope – underlinedMikołaj Franzkowiak, vice-president of Enea for financial affairs.

– When financing the transaction we used the force Enea has at its disposal and acquired shares for the funds coming mainly from our own resources, including the funds obtained as part of the first public issue and the issue available within the programme guaranteed by Bank Gospodarstwa Krajowego – added vice-president Franzkowiak.

Połaniec Power Plant is one of the most efficient electricity generators in Poland which has implemented a ca. PLN 1.5 billion worth of an intensive modernisation programme during recent five years. The modernisations extended the power plant’s operation by over 20 years, increasing the efficiency of energy generation and adjusting the generating equipment to the environmental standards in force, including to the requirements of IED Directive. An important part of the power plant is a modern biomass unit, over 200 MW capacity, which generates “green energy” based on biomass coming from local suppliers. Połaniec Power Plant also has much in common with Kozienice Power Plant owned by Enea. Both power plants are very important to the Polish power system security and generate energy using 200 MW units.

Enea Group is one of the leaders of the Polish power market. It manages the complete chain of values: from coal in the mine to a socket at Customer’s home. It is responsible for reliable supplies of energy to 2.5 mln Customers.