Expansion in the Renewable Sector Strengthens Effective Implementation of the Group’s Development Strategy

Since the beginning of 2025, the Enea Group has intensified its activities in the renewable energy sector. Enea has finalized two major transactions, acquiring wind farms with a combined generation capacity of 166.7 MW. The effective implementation of strategic objectives is supported by stable financial and operational performance, creating an ecosystem for sustainable development across all business areas.

• Two successfully completed acquisitions of wind farms located in the West Pomeranian and Pomeranian Voivodships will more than triple the Group’s wind generation capacity.
• EBITDA increased by 3.4% y/y, reaching PLN 1.9 billion.
• Electricity production rose by 19% y/y to 5.9 TWh.
• The number of customers using green energy products offered by the Group continues to grow dynamically.
• In Q1 2025, the Group invested PLN 618.3 million. More than half of this amount, PLN 314.4 million, was allocated to the distribution segment.

Growing RES potential in Enea’s generation portfolio

The beginning of 2025 saw a clear acceleration in the execution of the Group’s strategy of increasing the share of green energy in its energy mix. With two new acquisitions, Enea more than tripled its generating capacity in the wind segment. Enea acquired six wind farms (29 turbines) with a capacity of 83.5 MW in the West Pomeranian Voivodeship, and a wind farm in Pelplin (Pomeranian Voivodeship) with a capacity of 83.2 MW (16 turbines). Enea also acquired project companies and rights to photovoltaic farm projects located across Poland, with a total capacity of over 190 MW. In the coming months, the Group plans to acquire another portfolio of wind projects at various stages of development, with a total capacity of about 33 MW, and also to acquire project companies or rights to photovoltaic farm projects with a total capacity of approximately 40 MW.

Investments support efficient operation of the distribution grid and development of renewable energy   

Enea Group plans to allocate nearly PLN 107.5 billion to the achievement of its strategic objectives by 2035. According to the strategy, the largest portion will be invested in the development of renewable energy sources, energy storage, and the expansion and modernization of the distribution grid. In Q1 2025 alone, investments amounted to PLN 618.3 million, including PLN 314.4 million in the distribution area. Key infrastructure investments completed during the period included, among others, the construction and reconstruction of 110 kV lines and 110/15 kV substations. These projects enhance the reliability of electricity supply and improve the ability to connect new RES sources.

Enea Operator is also deploying tools to ensure stable grid performance amid the rapid growth of RES. 200 entities are already using the emergency active power delivery service launched in Q1 of this year, totaling 74.8 MW above the contracted power limits. The launch of an emergency reactive power regulation service on Enea Operator’s orders is planned for Q3 this year, while in Q4, a network optimization mechanism based on energy storage systems will be deployed.

Green products support energy transition and energy efficiency

Since the beginning of the year, Enea has run an extensive sales campaign, offering fixed prices over a longer period to business customers who were not eligible for “frozen” energy prices. Enea is also broadening its range of green products for both households and businesses. In Q1 2025 alone, more than 9,000 business customers chose the Business EKO Offer, and almost 35,000 retail customers chose the EKO Offer.

Enea’s green business line, Enea Eko, continues to expand its product portfolio, supporting customers at every stage of their energy efficiency and energy transition journey. The offering includes, among others: comprehensive strategic and operating advisory services, assistance in obtaining external funding for transition, and the development of energy management tools enabling consumption analysis and the effective implementation of decarbonization strategies.      

In April this year, a strategic decision was made to reorganize trading area in Enea. The intended reorganization involves transferring the Company’s current electricity sales operations to a subsidiary. The goal is to significantly streamline and simplify internal and decision-making processes. Consolidating sales and product competencies for B2B and B2C segments will facilitate product development and improve the operational efficiency of sales activities.

Stable financial results support execution of the strategy

In Q1 2025, Enea Group reported EBITDA of PLN 1.9 billion, an increase of 3.4% y/y. Revenue from sales and other income totaled nearly PLN 7.6 billion, compared to PLN 8.4 billion in the same period last year. Net profit rose by 11% y/y to PLN 1.15 billion. The net debt/EBITDA LTM ratio stood at 0.27, down from 0.85 in Q1 2024. The mining, distribution, and trading segments contributed to the EBITDA growth. 

The Trading segment posted an EBITDA increase of PLN 134.1 million y/y to PLN 213.6 million.  Total volume of electricity sales to retail customers amounted to 6.2 TWh, down 5.2% y/y, with total revenue from sales of electricity to this segment falling by 11.6% compared to Q1 2024, which reflected declining wholesale electricity prices.

Distribution area achieved the highest EBITDA, of PLN 744.4 million (up over 21% y/y) In Q1 2025, Enea Operator delivered over 5.1 TWh of distribution services to end users. More than 2,000 new renewable sources (including micro-installations) were connected to the network, bringing the total number of RES connected to the Enea Operator grid to over 194,000 at the end of Q1 2025, with a combined capacity exceeding 7.4 GW.

EBITDA for the Generation area amounted to PLN 549.4 million, a y/y decrease of PLN 380.5 million. The Group produced 5.9 TWh of electricity in Q1 2025, up 19% y/y. Renewable energy generation (hydro, wind, PV) totaled 0.1 TWh, while biomass contributed 0.4 TWh.  Sales of heat in the Generation area exceeded 2.3 PJ (petajoules).

Bogdanka increases sales, improves profitability, and reports nearly sixfold growth in net profit

Lubelski Węgiel Bogdanka, one of the leading coal producers in Poland, closed Q1 2025 with a marked improvement in financial and operational performance, Achieved in spite of ongoing market challenges and declining coal prices. Consolidated revenue from sales amounted to PLN 868.9 million (up 6.5% y/y), EBITDA surged by 143.1% from PLN 162 million to PLN 395 million, while net profit rose to PLN 283.9 million (up 563.7% y/y). Bogdanka Group’s profitability also improved significantly, with EBITDA margin rising to 45.5% (+25.6 pp y/y) and EBIT margin to 39.6% (+33.7 pp y/y).

In Q1 2025, Bogdanka sold nearly 2.24 million tons of commercial coal, a 27.3% increase y/y. This growth more than offset the impact of lower coal prices and significantly boosted the company’s operational efficiency and financial results. The Company retained its strong market position, achieving 34% of the supply market to Poland’s professional power generation sector. LW Bogdanka produced nearly 2.7 million tons of commercial coal, up 41.4% (+777 thousand tons) from Q1 2024. The yield reached 69%, marking an increase of 4.3 pp y/y..

COMMENTS ON Q1 2025 RESULTS OF THE ENEA GROUP:

Grzegorz Kinelski, President of Enea: 

“We started the year on a high note. The Group’s transformation is progressing through concrete projects, and both our customers and shareholders can see the increasing intensity of our activity in the RES sector. We are adding wind farms to our generation portfolio, transforming the Group to match market expectations. Our top priority is to reshape our generation mix, so we continue to explore new business opportunities and hold discussions with owners and developers of RES projects to drive the growth of our zero-carbon assets.

Our financial and operational performance in Q1 2025 confirms that we can safely pursue our vision for the Group’s development. During this period, the net debt/EBITDA LTM ratio fell to 0.27 from 0.85 in the same period of 2024, reflecting our strong investment funding capacity. The Group’s EBITDA reached PLN 1.9 billion, and net profit came in at PLN 1.15 billion – an 11% increase y/y. The scale of our efforts and our the commitment shown by the entire Group demonstrate our determination to achieve strategic goals. We have an excellent team; the Group brings together top experts and professionals, enabling us to advance our planned projects effectively.”    

Artur Wasilewski, Vice-President for Economic and Financial Matters:

“In Q1 2025, we recorded a significant improvement in financial results, driven by higher coal production and sales, as well as by effective operational measures and cost control. Operating profit improved more than sixfold, with EBITDA increasing by 143% y/y to PLN 395 million. Even when the one-off compensation payout is eliminated, our performance remains strong, with EBIT increasing four-fold and net profit five-fold. This confirms that we have significantly improved profitability and continue to demonstrate strong cash generation capacity. This allows us to reliably finance both day-to-day operations and development initiatives. In the coming periods, we intend to consistently pursue our new development strategy while remaining flexible in responding to changing market and cost conditions.