Estimated selected financial and operating data for year 2023

The Management Board of PGE Polska Grupa Energetyczna S.A. (“PGE”) publishes initial selected consolidated financial and operating data for year 2023.

According to the initial estimates net electricity production at PGE Group generating units in 2023 amounted to 56.8 TWh, distribution volume arrived at 38.9 TWh and sales to final off-takers came out at 34.7 TWh. Heat sales volume amounted to 49.0 PJ.

Consolidated recurring EBITDA in 2023 amounted to approximately PLN 10 722 m, including:

EBITDA of Conventional Generation segment PLN 2 086 m,

EBITDA of District Heating segment PLN 2 061 m,

EBITDA of Renewables segment PLN 1 108 m,

EBITDA of Distribution segment PLN 3 930 m,

EBITDA of Energy Railway Services segment PLN 1 238 m,

EBITDA of Supply segment PLN -74 m (loss),

EBITDA of Circular Economy segment PLN 57 m.

Estimated impact of contributions to Price Difference Payment Fund (resulting from the Act of October 27, 2022 on extraordinary measures to limit the level of electricity prices and support for certain consumers in 2023 and the Regulation of the Council of Ministers of November 8, 2022 on the method of calculating the price cap) in 2023 amounted to approx. PLN 6.6 bn (decreasing financial results).

The results also take into account negative impact of:

- PLN 761 m of provision created in connection with approval by the Energy Regulatory Office President of the PGE Obrót S.A. tariff for G tariffs off-takers for year 2024 which does not fully cover incurred costs of electricity purchase,

- PLN 535 m of decreased consolidated revenues due to the implementation of the Regulation of the Minister for Climate and Environment of September 9, 2023 (reduction in electricity bills by PLN 125), according to the number of entitled customers as at December 31, 2023.

In addition, the results for 2023 were influenced by one-off events decreasing reported EBITDA result by approx. PLN 694 m. The period's result was mainly influenced by non-cash changes in the value of the reclamation provision which translated into a decrease in EBITDA by PLN 527 m.

As a result consolidated reported EBITDA in 2023 amounted to approximately PLN 10 028 m, including:

EBITDA of Conventional Generation segment PLN 1 472 m,

EBITDA of District Heating segment PLN 1 952 m,

EBITDA of Renewables segment PLN 1 114 m,

EBITDA of Distribution segment PLN 3 880 m,

EBITDA of Energy Railway Services segment PLN 1 243 m,

EBITDA of Supply segment PLN -4 m (loss),

EBITDA of Circular Economy segment PLN 56 m.

At the same time, with reference to the current report no. 4/2024 of January 26, 2024, the Management Board of PGE discloses that following the impairment tests on property, plant and equipment an impairment amounting to approx. PLN 8.4 bn gross was made in Conventional Generation segment. The above adjustment is of non-cash nature and it lowers the PGE Capital Group’s gross result. Total value of impairments amounted to PLN 8.7 bn.

In effect, the consolidated net profit attributable to equity holders of the parent company amounted to approximately PLN – 5 012 m (loss), i.e. PLN -2.23 per share and the consolidated net profit attributable to equity holders of the parent company excluding impairments amounted to approx. PLN 2 035 m, i.e. PLN 0.91 per share. Capital expenditures amounted to PLN 10 088 m. Estimated net debt amounted to approximately PLN 11 121 m as at December 31, 2023, and estimated economic net financial debt (including future payment for CO2 allowances) amounted to approx. PLN 21 960 m.

Average electricity wholesale price realized in 2023 (including contributions to Price Difference Payment Fund) by:

- Conventional Generation segment amounted to PLN 728.3 per MWh,

- Conventional Generation and District Heating segments amounted to PLN 722.1 per MWh.

At the same time, the average cost of CO2 emission rights for both segments related to electricity generation amounted to PLN 416.9 per MWh.

Disclaimer: Presented values are estimated and may change. Consolidated financial statements of the PGE Group are still in the preparation process. The consolidated report for 2023 is planned to be published on March 19, 2024.