Current Report No.: 16/2022
Current Report No.: 16/2022
Date of Preparation: 1 April 2022
Issuer's Abbreviated Name: ENEA S.A.
Subject: Completion of the financial settlement process with the EPC Contractor of the Coal-Fired Project under the contract for the construction of the Ostrołęka C Power Plant
Legal Basis: Article 17(1) of the Market Abuse Regulation - confidential information
Body of the report:
With reference to Current Report Nos. 21/2021 of 25 June 2021 and 43/2021 of 22 December 2021, the Management Board of ENEA S.A. ("Issuer", "Company") hereby reports that on 1 April 2022 it obtained information from Elektrownia Ostrołęka Sp. z o.o. ("EO") on the completion of the financial settlement on 31 March 2022, in accordance with the executed Agreement (as referred to in the said current reports), of the Coal-Fired Project implemented under the contract for the construction of the Ostrołęka C Power Plant, with the EPC Contractor - a consortium established between GE Power sp. z o.o. with its registered office in Warsaw (consortium leader) and GE Steam Power Systems S.A.S. with its registered office in Boulogne-Billancourt, France. The final net value of receivables arising from the settlement was PLN 958 million and, accordingly, the total amount due the EPC Contractor, calculated as the difference between the above value and the amounts already covered has already been paid in full by EO. Therefore, the financial settlement process with the EPC Contractor of the Coal-Fired Project has been completed. The costs incurred by the Issuer in connection with the settlement of the work performed by the EPC Contractor accounted for 50% of the said amount, that is PLN 479 million net (with Energa S.A. receiving the other 50%).
In light of the foregoing, the Issuer has identified the possibility of a further reversal of the provision - up to PLN 15.4 million - established initially in 2020 in the amount of PLN 222.2 million to finance EO for the purposes of the financial settlement of the Coal-Fired Project. The impact of this event on the ENEA Group's consolidated net profit in the reporting period and ENEA S.A.'s standalone net profit in 2022 will amount to PLN 31.1 million. The event described herein is of a non-cash nature and will increase the reporting period's net profit with no impact on EBITDA.
Please note that the term EBITDA is defined as the value of operating profit (loss) + depreciation and amortization + impairment losses on non-financial non-current assets (values for the reporting period). The above definition and methodology for its calculation are the same as those used to calculate this indicator in the Issuer's periodic reports. The definition above is also included in the glossary of terms and abbreviations available on the Company's website (https://ir.enea.pl/slownik).