CONCLUSION OF IMPORTANT AGREEMENTS BY PROJECT COMPANIES IMPLEMENTING OFFSHORE WIND FARM PROJECTS

The Management Board of the company under the name Polenergia S.A. (“Issuer”) informs that on October 24, 2023, the project companies MFW Bałtyk II sp. z o. o. and MFW Bałtyk III sp. z o.o. (“Project Companies”), in which the Issuer holds 50% shares, developing offshore wind farm construction projects as part of the joint venture of the Issuer and Equinor Wind Power AS, i.e. OWF Bałtyk II and OWF Bałtyk III, respectively (collectively, the “Projects”), concluded with Seaway 7 Management AS based in Oslo (Norway) (“Contractor”) contracts for the design, manufacture, testing, transportation, installation and protection of array cables, i.e. cables connecting offshore wind turbines with an offshore transformer station (collectively, the “Agreements”).

The Contractor’s total remuneration under both Agreements (i.e. for both Projects) was initially determined – as of the date of signing the Agreements – at approximately EUR 187 million. It takes into account partly flat rates and partly rates dependent, e.g. on the technology of installation works used, the duration of the Contractor’s works at sea, downtime resulting from weather conditions, indexation of raw material prices, fuel prices and the rates of selected subcontractors. The total remuneration due to the Contractor was calculated taking into account the fact of implementation of both Projects. The final remuneration will be determined after freezing variable rates and taking into account factors depending on the market situation.

The Agreements contain the same substantive provisions, standard for this type of contracts, including detailed definition of the scope and schedule of work, rules for terminating the Agreements, rules of liability, including contractual penalties, and guarantees provided by the Contractor for the proper performance of the Agreements and guarantees for the works performed. The differences between the Agreements reflect the design differences of each Project.

Legal grounds: article 17 clause 1 of Regulation (EU) No 596/2014 of the European Parliament and of the Council on market abuse and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/1250/EC and 2004/72/EC (O.J. of the EU. L. of 2014 No. 173, page 1 as amended).