Current Report No.: 23/2020
Current Report No.: 23/2020
Date of Preparation: 4 June 2020
Issuer's Abbreviated Name: ENEA S.A.
Subject: Information on the proposed distribution of the 2019 profit
Legal Basis: Article 17 Section 1 of the Market Abuse Regulation - confidential information
Body of the report:
The Management Board of ENEA S.A. ("Company", "Issuer") hereby reports that on 4 June 2020 it adopted a resolution to accept the distribution of the Company's net profit for the financial year 2019, in which the Management Board recommends that the Issuer's net profit in the amount of PLN 283,331 thousand for Issuer's reporting period from 1 January 2019 to 31 December 2019 ("Net Profit") be distributed by allocating 100% of the Net Profit to reserve capital for the purpose of financing investments.
The recommendation of the Company's Management Board to allocate 100% of the Net Profit for the 2019 financial year to reserve capital is justified by the significant investment needs of the ENEA Group resulting among others from the plans set forth in the "Development Strategy of the ENEA Group until 2030 with an outlook to 2035", on which the Company reported in Current Report No. 36/2019. From the ENEA Group's point of view, it is important to build its equity levels in the long-term, in order to be able to carry out the necessary capital expenditures. The profit will constitute a supplementary source of financing of capital expenditures, in particular those related to the development of the ENEA Group.
The guiding principle of ENEA S.A.'s dividend policy remains that any future dividend payments will be made depending on the amount of the profit generated by the Company and the Company's financial standing.
The Company also reports that today, the Issuer's Supervisory Board adopted a resolution, in which it issued a positive opinion on the Company's Management Board's proposal to distribute the Issuer's net profit for the reporting period from 1 January 2019 to 31 December 2019 in the amount of PLN 283,331 thousand by allocating 100% of the Net Profit to reserve capital for the purpose of financing investments. At the same time, the Company explains that the final decision regarding the allocation of the Net Profit for the 2019 financial year will be made by the Ordinary General Meeting of ENEA S.A.
