Consolidated sales revenues amounted to PLN 30.1bn as compared to PLN 28.1bn a year before. A 9% rise in revenues resulted from a larger volume of electricity sold and one-off events such as adjustments to the assumptions concerning the final settlement of compensations for the preliminary termination of long-term power purchase agreements.

EBITDA reached the level of PLN 6.8bn, the same as in 2011. 2012 was the fifth consecutive year of growth in recurring EBITDA, which makes PGE one of very few European power utilities with profitability on a rising curve. Recurring EBITDA reached PLN 8.04bn, an 8% (over PLN 500m) increase over that of 2011. The PGE Capital Group's net profit for 2012 amounted to PLN 3.2bn. Adjusted net profit was PLN 4.2bn.

The adjusted values of PGE's financial results project an image of a stable corporation doing well in the difficult market conditions. The 2012 financial results were influenced strongly by one-off non-cash events which occurred in the fourth quarter, e.g. an impairment write-off concerning the Dolna Odra Power Plant, an adjustment to the land reclamation provision, expenditures on the CCS project, and provisions for employees' benefits. Despite constant changes in the business environment, for the fifth year in a row PGE records an increase in its recurring EBITDA.

2012 was also a record-breaking year with respect to sales revenues. Stable cashflows, a good financial standing and no debt give us a comfortable environment for the implementation of projects focusing on improvements in PGE operating efficiency as well as development projects aimed at the creation of the Group's value, said Krzysztof Kilian, President of the Management Board of PGE Polska Grupa Energetyczna S.A. Last year PGE's volume of net electricity generation rose by 1% (57.05 TWh in 2012 as compared to 56.52 TWh in 2011).

The company recorded also a higher volume of distributed energy and its sales to end users. These positive results were achieved despite lower domestic demand for electricity.

The details of the PGE Capital Group’s financial results for 2012 are available at: Results-for-year-2012

The level of profit will obviously be reflected in the amount of dividend to be paid to the Company's shareholders. The Management Board has decided to propose the payment of dividend at PLN 0.86 per share. In 2012 the PGE Capital Group launched a series of important projects aimed at the implementation of the corporate governance principles, which should allow effective management of the whole value chain and support the process of creating value for shareholders.

The Company started the revision of the Group's strategy and the process of thorough reviews of its investment projects with a view to ensuring an optimum development path based on all market opportunities and simultaneously taking into consideration PGE's both financial and organization potential. PGE continued the Effectiveness Improvement Programme and initiated new activities whose objective was to maintain its competitive edge by enforcing a strict cost discipline and reducing fixed costs in total electricity generation costs, in particular in the lignite mine - power plant complexes generating electricity based on their own lignite deposits.

In 2013 the PGE Group intends to continue its projects aimed at the formal and legal streamlining of its structures and the operationalization of its activities, which should have a positive impact on the Company's financial results and potential to create value in a long-term perspective. This year of key importance for the effective management of the Group will be the implementation of SAP ERP, the continuation of the ICT shared services centre programme, and the implementation of the aforementioned optimization initiatives.

Additional information for the media:

Małgorzata Kozieł
+48 (22) 340 11 21
biuro.prasowe@gkpge.pl

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PGE Capital Group is the largest group of the power generation sector in Poland with respect to revenues and generated earnings. Thanks to the combination of its own fuel resources and power generation as well as having own distribution networks, PGE guarantees a safe and reliable power supply to over five million customers.

PGE CG's business activities comprise the mining of lignite, the generation of electricity and heat, the wholesale trade, the electricity distribution and sales. Within the Capital Group, the integration of activities of the particular segments is the responsibility of the following companies: PGE Polska Grupa Energetyczna S.A., PGE Górnictwo i Energetyka Konwencjonalna S.A., PGE Energia Odnawialna S.A., PGE Energia Jądrowa S.A., PGE Dystrybucja S.A. and PGE Obrót S.A. PGE CG is the undisputed leader with respect to the installed capacities and volume of generated electricity. The PGE Capital Group has a 40% share in Poland's power generation market and a 26% share in the electricity distribution market.

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