Current Report No.: 28/2019

Title: Information on preliminary financial results and operating data for H1 2019
Date: 2019.19.09
Report no.:  Current Report No.: 28/2019

Current Report No.: 28/2019

Date of preparation: 19 September 2019

Short name of issuer: ENEA S.A.

Subject: Information on preliminary financial results and operating data for H1 2019

Legal basis: Article 17 item 1 of MAR - confidential information

Content of report:

In relation to the information obtained by the Management Board of ENEA S.A. ("Company", "Issuer") on 19 September 2019 concerning preliminary financial results and operating data of ENEA Capital Group for H1 2019, the Company hereby publishes the preliminary results as presented hereinbelow.

Consolidated financial results of ENEA Capital Group for H1 2019:

- Net sales revenue: PLN 7,589 million,

- Sales revenue and other revenue: PLN 8,020 million,

- EBITDA: PLN 1,666 million,

- EBIT: PLN 926 million,

- Net profit: PLN 579 million,

- Net profit attributable to shareholders of the parent company: PLN 506 million.

EBITDA in individual areas of operations:

- Mining: PLN 434 million,

- Generation: PLN 730 million,

- Distribution: PLN 515 million,

- Trading: PLN 35 million.

Selected operating data:

- Net coal production: 4.8 million tonnes,

- Net total generation of electricity: 12.7 TWh,

- Sales of distribution services to end users: 10.0 TWh,

- Sales of electricity and gaseous fuel to retail customers: 10.2 TWh.

The EBITDA generated by ENEA Capital Group in H1 2019 was affected, i.a., by the following factors (as compared to H1 2018):

In the Mining Area, the area's higher result is due to the higher production level and higher coal sales revenues, as well as from the mine's improved operating efficiency, especially with respect to fixed costs,

In the Generation Area, the result was positively influenced by the increased generation of ENEA Wytwarzanie and by the revenues from the sale of electricity and property rights, despite the negative deviation of fuel costs and CO2 emission allowances,

In the Distribution Area, the lower result is due to the increased costs of energy purchased for own needs and for covering the energy balance difference; moreover, a lower result on other operating activities was recorded, mainly due to the change in provisions concerning grid assets,

In the Trading Area:

- the retail trade was characterised by the increased revenue from the sale of electricity to end customers, including the estimated revenue from the price difference. The rate of growth did not offset the rising costs of energy purchase and environmental obligations, mainly due to the purchase of property rights;

- the wholesale trade remains under pressure of rising prices of CO2 emission allowances, which affects the valuation of contracts and hedging instruments.

Non-consolidated financial results of ENEA S.A. for H1 2019:

- Net sales revenue: PLN 2,382 million,

- Sales revenue and other revenue: PLN 2,812 million,

- EBITDA: PLN (-)28 million,

- EBIT: PLN (-)31 million,

- Net profit: PLN 383 million.

The difference between the Company's net profit and EBIT is due to the revenues from dividends paid by subsidiaries.

Moreover, the Issuer notes that the impact of the effects of the Act of 28 December 2018 amending the Act on Excise Duty and certain other acts as subsequently amended has been taken into account in the financial results for H1 2019 of ENEA Capital Group and ENEA S.A.

In order to ensure comparability of the financial data for H1 2019 with the previous periods, the revenues in this Current Report are presented under two items:

- Net sales revenue and

- Sales revenue and other revenue.

Sales revenue and other revenue are the sum of Net sales revenue and the calculated price difference.

The calculation was based on the information published by the Minister of Energy and the President of the Energy Regulatory Office.

The final results will be published in the consolidated financial statements of ENEA Capital Group and the non-consolidated financial statements of ENEA S.A. for H1 2019, which are scheduled to be released on 30 September 2019.

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.