Current Report No.: 34/2024

Current Report No.: 34/2024

Date of Preparation: 4 November 2024

Issuer's Abbreviated Name: ENEA S.A.

Subject: Information on preliminary financial and operating results for Q1-Q3 2024

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

Body of the report:

In connection with the adoption of information on preliminary financial and operating results of the ENEA Group for Q1-Q3 2024 by the Management Board of ENEA S.A. ("Company", "Issuer") on 4 November 2024, the Company hereby publishes the said preliminary results.

Consolidated financial results of the ENEA Group for Q1-Q3 2024:

- Revenue from sales and other income: PLN 24,161 million,

- EBITDA: PLN 5,333 million,

- Profit before tax: PLN 3,752 million,

- Net profit for the reporting period: PLN 2,996 million,

- Net profit attributable to shareholders of the parent company: PLN 3,252 million,

- Capital expenditures on property, plant and equipment and intangible assets: PLN 2,049 million,

- Net debt / LTM EBITDA ratio: 0.02.

EBITDA in the distinct operating areas:

- Mining: PLN 566 million,

- Generation: PLN 2,666 million,

- Distribution: PLN 1,746 million,

- Trading: PLN 232 million.

Selected operating highlights:

- Net coal production: 5.4 million tons,

- Total net electricity generation: 14.7 TWh,

of which: 1.0 TWh from biomass and 0.3 TWh from RES,

- Sales of distribution services to end users: 14.9 TWh,

- Sales of electricity and gaseous fuel to retail customers: 18.6 TWh.

The EBITDA result generated by the ENEA Group in Q1-Q3 2024 was driven largely by the following factors (compared to Q1-Q3 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, a higher EBITDA was posted. The System Power Plants Segment saw an improvement in EBITDA, driven primarily by an increase in the trading margin, greater revenues from the Capacity Market and the Balancing Capacity, while the result of 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, while fixed costs increased. In the Generation Area, 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. At the same time, operating expenses went up.

- In the Trading Area, the higher EBITDA was mainly due to an increase in the margin on the retail market. At the same time, a decline in recognized compensation income was recorded.

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 compensation revenues in the total amount of PLN 1,270 million in the period of Q1-Q3 2024 and PLN 372 million in Q3 2024.

Consolidated financial results of the ENEA Group for Q3 2024:

- Revenue from sales and other income: PLN 8,019 million,

- EBITDA: PLN 1,863 million,

- Profit before tax: PLN 1,320 million,

- Net profit for the reporting period: PLN 1 026 million,

- Net profit attributable to shareholders of the parent company: PLN 971 million,

- Capital expenditures on property, plant and equipment and intangible assets: PLN 708 million,

- Net debt / LTM EBITDA ratio: 0.02.

EBITDA in the distinct operating areas:

- Mining: PLN 285 million,

- Generation: PLN 1,000 million,

- Distribution: PLN 586 million,

- Trading: PLN 36 million.

Selected operating highlights:

- Net coal production: 1.9 million tons,

- Total net electricity generation: 5.0 TWh,

of which: 0.3 TWh from biomass and 0.1 TWh from RES,

- Sales of distribution services to end users: 4.9 TWh,

- Sales of electricity and gaseous fuel to retail customers: 6.1 TWh.

The Company reports that the foregoing figures are estimates and as such are subject to change, and that their final amounts will be presented in the periodic report of the ENEA Group for Q3 2024, which is expected to be published on 20 November 2024.

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 Net debt / LTM 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) / LTM EBITDA. LTM EBITDA means EBITDA for the last 12 months.