Title: Information on preliminary financial results and operating data for Q1 2019
Date: 2019.08.05
Report no.:  Current Report No.: 13/2019

Current Report No.: 13/2019

Date of preparation: 8 May 2019

Short name of issuer: ENEA S.A.

Subject: Information on preliminary financial results and operating data for Q1 2019

Legal basis: Article 17 item 1 of MAR - confidential information

Content of report:

In relation to the information obtained by the Management Board of ENEA S.A. ("Company", "Issuer") on 8 May 2019 concerning preliminary financial results and operating data of ENEA Capital Group for Q1 2019, the Company hereby publishes the preliminary results as presented hereinbelow.

Consolidated financial results of ENEA Capital Group for Q1 2019:

- Net sales revenue: PLN 4,010 million,

- EBITDA: PLN 799 million,

- EBIT: PLN 441 million,

- Net profit: PLN 280 million,

- Net profit attributable to shareholders of the parent company: PLN 246 million.

EBITDA in individual areas of operations:

- Mining: PLN 219 million,

- Generation: PLN 400 million,

- Distribution: PLN 249 million,

- Trading: PLN (-)11 million.

Selected operating data:

- Net coal production: 2.5 million tonnes,

- Net total generation of electricity: 6.1 TWh,

- Sales of distribution services to end users: 5.1 TWh,

- Sales of electricity and gaseous fuel to retail customers: 5.4 TWh.

The EBITDA generated by ENEA Capital Group in Q1 2019 was affected, i.a., by the following factors:

- Mining Area - the higher result of the area is the effect of higher production as compared to the first quarter of the previous year and the higher price of coal sales, as well as the improved operating efficiency of the mine, in particular with respect to fixed costs,

- Generation Area - the result of the area was positively influenced by higher market prices of electricity and green certificates, as well as by the operation of all generation sources running according to plans,

- Distribution Area - the high average prices of electricity contributed to higher costs of energy purchase for own purposes and for covering the balance sheet difference; also, a lower result on other operating activities was recorded,

- Trading Area - in the retail trade, higher revenues from sales of electricity to end users do not offset the rising costs of energy purchase and environmental obligations (mainly, of the green certificates); the wholesale trade remains under pressure of rising prices of CO2 emission allowances, which affects the valuation of contracts and collaterals.

Non-consolidated financial results of ENEA S.A. for Q1 2019:

- Net sales revenue: PLN 1,447 million,

- EBITDA: PLN (-)39 million,

- EBIT: PLN (-)40 million,

- Net profit: PLN (-)39 million.

Moreover, the Issuer notes that, as the executive regulations necessary to determine the ultimate effects of the Act of 28 December 2018 amending the Act on Excise Duty and certain other acts as amended (in particular, with respect to price changes for customers other than tariff customers in 2019) have yet to be published, the financial impact of the Act was only estimated insofar as possible and reliable on the publication date of this report. The results of this estimation conducted on the basis of the legislation effective as at 31 March 2019 were reflected in the preliminary results of ENEA Capital Group and ENEA S.A. for Q1 2019 presented hereinabove.

The final results will be published in the consolidated financial statements of ENEA Capital Group and non-consolidated financial statements of ENEA S.A. for Q1 2019, which are scheduled to be released on 23 May 2019.