PRELIMINARY SELECTED CONSOLIDATED FINANCIAL RESULTS FOR NINE MONTHS OF 2023

The Management Board of the company under the name Polenergia S.A. with its registered office in Warsaw (the “Issuer”) publishes selected preliminary, estimated, consolidated financial results of the Polenergia S.A. Capital Group (“Group”) for nine months of 2023.

In the nine-month period ended September 30, 2023, the Group’s adjusted EBITDA amounted to PLN 419.8 million and was higher by PLN 175.4 million compared to the result in the same period of the previous year. This was mainly due to the higher result of the trading and sales segment, which is mainly a consequence of higher results on: trading in energy from RES assets, RES aggregation, electricity trading and business services, servicing the contract of Polenergia Elektrociepłownia Nowa Sarzyna using short-term variability of CSS (Clean Spark Spread) and other activities, including mainly the sale of photovoltaic panels and heat pumps. A higher adjusted EBITDA result compared to the result from the same period last year was also recorded in the wind farm segment, which is primarily a consequence of the start of production in the Dębsk, Kostomłoty, Grabowo and Piekło wind farms and higher sales prices of electricity and green certificates in relation to the prices from 2022 (in which the prices resulting from hedging transactions concluded in previous years were applicable). The above effects were partially offset by the lower result of the distribution segment due to the delay in the entry into force of the new distribution tariff and higher operating costs at the Centre resulting from the increase in the scale of operations.

In the first three quarters of 2023, the Group’s adjusted net profit amounted to PLN 213.7 mln, which is an increase compared to the result in the same period last year by PLN 105.9 mln. The change in adjusted net profit in the nine months of 2023 was mainly due to the factors described above affecting adjusted EBITDA, higher depreciation resulting mainly from the increase in production capacity, higher interest income on investments and an increase in financial costs resulting from the increase in the level of debt and higher rates percentages.

The adjusted EBITDA result in the third quarter of 2023 amounted to PLN 110.9 mln and was higher by PLN 77.9 mln compared to the result in the same period of the previous year. This was mainly due to a higher result in the trading and sales segment, primarily as a result of higher results on: trade in energy from RES assets, RES aggregation, electricity trade and business services, and energy sales related mainly to the achievement of a higher margin on the portfolio of energy supply contracts electricity. An improvement in the result was also recorded in the wind farm segment, mainly as a result of the start of production in the Grabowo and Piekło wind farms and higher sales prices of electricity and green certificates compared to the prices from 2022 (in which the prices resulting from hedging transactions concluded in previous years were applicable).

In the third quarter of 2023, the Group’s adjusted net profit amounted to PLN 43.9 mln, which is an increase compared to the result in the same period last year by PLN 55.2 mln.

The presented amounts are estimates and may change. The final consolidated results will be presented in detail in the consolidated quarterly report of the Polenergia Capital Group for the third quarter of 2023, which is scheduled for publication on November 22, 2023.

Legal basis: art. 17 section 1 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, 2003/125/EC and 2004/72/EC (Journal of Laws EU L. of 2014, No. 173, p. 1, as amended).