Enea S.A. — Earnings Release 2019

Sep 20, 2019

Current Report No.: 28/2019

Date of preparation: 19 September 2019

Short name of issuer: ENEA S.A.

Subject: Information on preliminary financial results and operating datafor H1 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 ENEAS.A. ("Company", "Issuer") on 19 September 2019 concerning preliminaryfinancial results and operating data of ENEA Capital Group for H1 2019,the Company hereby publishes the preliminary results as presentedhereinbelow.

Consolidated financial results of ENEA Capital Group for H1 2019:

- Net sales revenue: PLN 7,589 million,

- Sales revenue and other revenue: PLN 8,020 million,

- EBITDA: PLN 1,666 million,

- EBIT: PLN 926 million,

- Net profit: PLN 579 million,

- Net profit attributable to shareholders of the parent company: PLN 506million.

EBITDA in individual areas of operations:

- Mining: PLN 434 million,

- Generation: PLN 730 million,

- Distribution: PLN 515 million,

- Trading: PLN 35 million.

Selected operating data:

- Net coal production: 4.8 million tonnes,

- Net total generation of electricity: 12.7 TWh,

- Sales of distribution services to end users: 10.0 TWh,

- Sales of electricity and gaseous fuel to retail customers: 10.2 TWh.

The EBITDA generated by ENEA Capital Group in H1 2019 was affected,i.a., by the following factors (as compared to H1 2018):

In the Mining Area, the area's higher result is due to the higherproduction level and higher coal sales revenues, as well as from themine's improved operating efficiency, especially with respect to fixedcosts,

In the Generation Area, the result was positively influenced by theincreased generation of ENEA Wytwarzanie and by the revenues from thesale of electricity and property rights, despite the negative deviationof fuel costs and CO2 emission allowances,

In the Distribution Area, the lower result is due to the increased costsof energy purchased for own needs and for covering the energy balancedifference; moreover, a lower result on other operating activities wasrecorded, mainly due to the change in provisions concerning grid assets,

In the Trading Area:

- the retail trade was characterised by the increased revenue from thesale of electricity to end customers, including the estimated revenuefrom the price difference. The rate of growth did not offset the risingcosts of energy purchase and environmental obligations, mainly due tothe purchase of property rights;

- the wholesale trade remains under pressure of rising prices of CO2emission allowances, which affects the valuation of contracts andhedging instruments.

Non-consolidated financial results of ENEA S.A. for H1 2019:

- Net sales revenue: PLN 2,382 million,

- Sales revenue and other revenue: PLN 2,812 million,

- EBITDA: PLN (-)28 million,

- EBIT: PLN (-)31 million,

- Net profit: PLN 383 million.

The difference between the Company's net profit and EBIT is due to therevenues from dividends paid by subsidiaries.

Moreover, the Issuer notes that the impact of the effects of the Act of28 December 2018 amending the Act on Excise Duty and certain other actsas subsequently amended has been taken into account in the financialresults for H1 2019 of ENEA Capital Group and ENEA S.A.

In order to ensure comparability of the financial data for H1 2019 withthe previous periods, the revenues in this Current Report are presentedunder two items:

- Net sales revenue and

- Sales revenue and other revenue.

Sales revenue and other revenue are the sum of Net sales revenue and thecalculated price difference.

The calculation was based on the information published by the Ministerof Energy and the President of the Energy Regulatory Office.

The final results will be published in the consolidated financialstatements of ENEA Capital Group and the non-consolidated financialstatements of ENEA S.A. for H1 2019, which are scheduled to be releasedon 30 September 2019.