Current Report No.: 21/2024

Current Report No.: 21/2024

Date of Preparation: 8 May 2024

Issuer's Abbreviated Name: ENEA S.A.

Subject: Information on preliminary financial and operating results for Q1 2024

Legal Basis: Article 17(1) of the Market Abuse Regulation - inside information

Body of the report:

On 8 May 2024, the Management Board of ENEA S.A. ("Company", "Issuer") adopted information on preliminary financial and operating results of the ENEA Group ("ENEA Group") for Q1 2024; in connection with the above, the Company hereby publishes the said preliminary results.

Consolidated financial results of the ENEA Group for Q1 2024:

- Revenue from sales and other income: PLN 8,385 million,

- EBITDA: PLN 1,877 million,

- Profit before tax: PLN 1,300 million,

- Net profit for the reporting period: PLN 1,039 million,

- Net profit attributable to shareholders of the parent company: PLN 1,018 million,

- Capital expenditures on property, plant and equipment and intangible assets: PLN 488 million,

- Net debt / EBITDA ratio: 0.85.

EBITDA in the distinct operating areas:

- Mining: PLN 158 million,

- Generation: PLN 930 million,

- Distribution: PLN 613 million,

- Trading: PLN 80 million.

Selected operating highlights:

- Net coal production: 1.9 million tons,

- Total net electricity generation: 5.0 TWh, of which 0.6 TWh from RES,

- Sales of distribution services to end users: 5.2 TWh,

- Sales of electricity to retail customers: 6.5 TWh.

The EBITDA result generated by the ENEA Group in Q1 2024 was driven by the following factors (compared to Q1 2023):

The lower EBITDA in the Mining Area resulted from a decrease in revenue from sales of coal. Despite the increase in coal sales volume, a lower sales price was realized.

In the Generation Area, the higher EBITDA was largely driven by improved EBITDA in the System Power Plants Segment. There was an increase in the turnover margin, an increase in revenue from the Capacity Market, while the result on the generation concession declined. The RES Segment saw a decrease in EBITDA due to the realization of a lower margin on the Green Unit (mainly as a result of lower electricity prices, with a decrease in the unit cost of biomass).

The Heat Segment saw a decline in EBITDA, which was influenced by, among other things, a decline in the unit margin on heat. In the Generation Area as a whole, the effect of the base of the corresponding period of the previous year relating to the costs incurred for the charge for the Price Difference Fund is significant.

In the Distribution Area, the improvement in EBITDA was driven by the higher margin realized on the concession business and higher result on other operating activities. At the same time, operating expenses went up.

In the Trading Area, the higher EBITDA was due to an increase in the margin on the retail market. At the same time, there was a decline in recognized compensation income and a decline in the use of provisions related to onerous contracts.

On account of the application of settlements with eligible offtakers pursuant to the Act of 7 October 2022 on special solutions to protect electricity offtakers in 2024 in connection with the situation on the electricity market and on account of the application of the maximum price in accordance with the Act of 27 October 2022 on emergency measures to reduce electricity prices and support certain consumers in 2024, the ENEA Group recognized in Q1 2024 compensation revenues in the total amount of PLN 506 million.

Standalone financial results of ENEA S.A. for Q1 2024:

- Revenue from sales and other income: PLN 4,135 million,

- EBITDA: PLN 34 million,

- Profit before tax: PLN 108 million,

- Net profit for the reporting period: PLN 93 million.

Please be advised that the foregoing figures are estimates and as such are subject to change, the final results will be presented in the periodic report of the ENEA Group for Q1 2024 scheduled to be published on 22 May 2024.

The Company clarifies 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 Net debt / EBITDA ratio is equal to (loans, borrowings and non-current and current debt securities + non-current and current finance lease liabilities + non-current and current financial liabilities measured at fair value - cash and cash equivalents - non-current and current financial assets measured at fair value - non-current and current debt financial assets measured at amortized cost - other short-term investments) / EBITDA LTM. EBITDA LTM means EBITDA for the last 12 months.