Energa S.A.

Report Publication Announcement • May 16, 2019

Current ReportNo. 9/2019

Prepared on:16 May 2019

Subject:Estimatedfinancial results for Q1 2019 of ENERGA Group

Legal basis:Article17 Section 1 of the Market Abuse Regulation - confidential information

The ManagementBoard of ENERGA SA hereby reports preliminary estimates of selectedfinancial and operational data for Q1 2019.

Financial andoperational data for Q1 2019:

EBITDA of theGroup: PLN 554 million, including:

EBITDA of theDistribution Business Line: PLN 548 million,

EBITDA of theGeneration Business Line: PLN 118 million,

EBITDA of the SalesBusiness Line: PLN -95 million.

Distribution ofelectricity: 5,811 GWh.

Gross production ofelectricity: 1,025 GWh.

Sales of electricity(retail): 4,968 GWh.

The DistributionBusiness Line's EBITDA was higher than the previous year, reaching PLN548 million, thanks to increase in the distribution margin (includinggrid losses) had a considerable impact on the operating profit, amongothers as a result of a favorable estimation of grid losses, which waspartially offset by higher OPEX costs.

The higher EBITDAof the Generation Business Line was mainly due to revenues growth fromenergy sales and higher revenues from sale of green property rights. Theabove factors were partially offset by, among others, a higher cost ofkey fuels consumption for production, a higher cost of emission rightspurchase and lower revenues from heat sales and distribution.

The negative EBITDAof the Sales Business Line in the first quarter of 2019 was mostly dueto the Act of 28 December 2018 on amending the Act on Excise Duty andCertain Other Acts, as subsequently amended. As of submission of ENERGAGroup's estimated results, no implementing regulations for the amendedAct had been published, therefore, no detailed information was availableon how sales prices should be adjusted for a significant group ofcustomers.

Therefore, theSales Business Line Sales has continued to invoice majority of thecustomers at the lower prices arising from the Act in its late 2018version, while not receiving any compensation. The estimated loss ofrevenue for the Business Line on that account was at PLN 209 million inthe first quarter of 2019.