Current Report No.: 56/2020
Current Report No.: 56/2020
Date of Preparation: 22 December 2020
Issuer's Abbreviated Name: ENEA S.A.
Subject: Signing of agreements on the Ostrołęka C project
Legal Basis: Article 17(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 22 December 2020 the following documents were signed:
1) agreement between the Company, Energa S.A. ("Energa") and Elektrownia Ostrołęka Sp. z o.o. (the special purpose vehicle executing the construction of the Ostrołęka C Power Plant) ("SPV") on cooperation in the SPV's split-up ("Split-Up Agreement"),
2) agreement between the Company and Energa on cooperation in the settlement of the Coal-Fired Project, as defined below ("Settlement Agreement").
These agreements were signed in connection with the decision to change the firing source for the Ostrołęka C Power Plant under construction with a capacity of approx. 1,000 MW from coal ("Coal-Fired Project") to gas ("Gas-Fired Project"), as disclosed by the Company in Current Report No. 21/2020 of 2 June 2020, and the decision to opt out of the Gas-Fired Project, as disclosed by the Issuer in Current Report No. 55/2020 of 22 December 2020.
In both these agreements, the Issuer declared its opting out of the Gas-Fired Project. The reasons behind the Issuer's decision to opt out of its capital involvement in the construction of the gas-fired unit stem in particular from the Issuer's intention to intensify its investment endeavors in the area of renewable energy sources and to dedicate expenditures related to the conversion of coal to gas-firing in the generation area towards the Issuer's current and existing generation assets that are fully owned by the Issuer.
The signing of the Agreements also confirms the other parties' intention to refrain, in connection with the Issuer's decision to opt out of the Gas-Fired Project, from pursuing any claims against the Issuer arising from this decision.
In accordance with the provisions of the Split-Up Agreement, the SPV will be split up by way of a spin-off (as defined in the Commercial Company Code) of assets and liabilities (rights and obligations) and other components comprising the Gas-Fired Project. The SPV split-up process is scheduled to be completed in Q2 2021.
The Settlement Agreement has been entered into as a necessary step in the performance of the Split-Up Agreement, which requires cooperation between of the SPV shareholders, including the necessary settlement of expenditures related to the Coal-Fired Project. The Settlement Agreement provides for the settlement of expenditures related to the Coal-Fired Project on the basis of the existing arrangements between the Company and Energa and in accordance with the assumptions disclosed by the Issuer in the aforesaid Current Report No. 55/2020 of 22 December 2020.
The Company will disclose the final settlement of all expenditures related to the Coal-Fired Project in a separate current report.