Current Report No.: 31/2019

Title: Information on preliminary financial results and operating data for Q1-Q3 2019
Date: 2019.05.11
Report no.:  Current Report No.: 31/2019

Current Report No.: 31/2019

Date of preparation: 5 November 2019

Short name of issuer: ENEA S.A.

Subject: Information on preliminary financial results and operating data for Q1-Q3 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 5 November 2019 concerning preliminary financial results and operating data of ENEA Capital Group for Q1-Q3 2019, the Company hereby publishes the preliminary results as presented hereinbelow.

Consolidated financial results of ENEA Capital Group for Q1-Q3 2019:

- Net sales revenue: PLN 11,662 million,

- Sales revenue and other income: PLN 12,169 million,

- EBITDA: PLN 2,556 million,

- EBIT: PLN 1,429 million,

- Net profit: PLN 990 million,

- Net profit attributable to shareholders of the parent company: PLN 892 million.

EBITDA in individual areas of operations:

- Mining: PLN 612 million,

- Generation: PLN 1,151 million,

- Distribution: PLN 804 million,

- Trading: PLN 17 million.

Selected operating data:

- Net coal production: 7.1 million tonnes,

- Net total generation of electricity: 19.9 TWh,

- Sales of distribution services to end users: 14.8 TWh,

- Sales of electricity and gaseous fuel to retail customers: 15.1 TWh.

The EBITDA generated by ENEA Capital Group in Q1-Q3 2019 was affected, i.a., by the following factors (as compared to Q1-Q3 2018):

In the Mining Area, the area's higher result results mainly from higher production and higher revenues from coal sales.

In the Generation Area, higher revenues from the sale of electricity and property rights had a positive impact on the result, despite a negative deviation in fuel costs and CO2 emission rights.

In the Distribution Area, the lower result of 2019 as compared to 2018 is owing to the increased costs of energy purchased for own needs and for covering the energy balance difference; and owing to the negative deviation from other operating activities due to the fact that in 2018 a one-off event was disclosed: the payment of compensation for the effects of storms that occurred in 2017.

The Trading Area was characterised by higher revenues from the sale of electricity to end users, including the estimated income from the price difference amount. However, the rate of increase did not offset the growing costs of energy purchase and environmental obligations.

Non-consolidated financial results of ENEA S.A. for Q1-Q3 2019:

- Net sales revenue: PLN 3,703 million,

- Sales revenue and other income: PLN 4,210 million,

- EBITDA: PLN (-)32 million,

- EBIT: PLN (-)36 million,

- Net profit: PLN 700 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 Q1-Q3 2019 of ENEA Capital Group and ENEA S.A.

In order to ensure comparability of the financial data for Q1-Q3 2019 with the previous periods, the revenues in this Current Report are presented under two items:

- Net sales revenue and

- Sales revenue and other income.

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

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 extended consolidated quarterly report of ENEA Capital Group for Q3 2019, which is scheduled to be released on 21 November 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.