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PGE Group published its financial and operating results for the first quarter of 2020. The green direction followed by the Group contributes to the Group's financial performance and mitigates the impact of market pressure on conventional sources.

• Relatively flat EBITDA posted by the Group (year-on-year decrease by 2% to PLN 1.8 billion) despite market pressure and negative impact of weather conditions.
• Weaker performance of the Conventional Generation segment (EBITDA of PLN 497 million, down 27% year-on-year) and District Heating segment (EBITDA of PLN 342 million, down 13% year-on-year) mainly due to higher costs of CO2 emission allowances.
• Slightly lower generation from conventional sources (at 14.5 TWh, down 2% year-on-year), a decrease partly offset by the positive impact of electricity generated in new units of the Opole Power Plant.
• Stronger performance of Renewables segment ( EBITDA of PLN 193 million, up 17% year-on-year) owing to increased production from wind farms (at 0.5 TWh, up 19% year-on-year).
• Improved performance of the Supply segment (EBITDA of PLN 218 million, up 52% year-on-year), mainly on the back of higher margins earned in business tariffs.
• Limited impact of the pandemic on results in the first quarter; the effects should become noticeable in subsequent reporting periods.

The Management Board of PGE Polska Grupa Energetyczna has decided to terminate projects and programmes planned for the years 2020-2030 that do not bring expected benefits for the PGE Group. The total value of these undertakings exceeds the amount of PLN 1 billion.

After a review of its sponsorship projects the PGE Group has decided to reduce the related expenditures by half, or nearly PLN 27 million in 2020.

The Management Board of PGE Polska Grupa Energetyczna decided to close projects with unsatisfactory rate of return, in particular those not directly related to the core business of the Group, and obliged all PGE Group companies to optimization and rationalization activities.

PGE Group's EBITDA with strong support from free EUA allowances. Net profit under pressure from impairment losses in Conventional Generation segment.

• PGE's EBITDA in 2019 reached PLN 7.1 billion, up 12% year-on-year.
• Adjusted net profit reached 2.1 billion, up 17% year-on-year.
• In 2019, PGE produced 58.3 TWh of electricity and sold 50.3 PJ of heat.
• Year-on-year electricity production from low-emission gas fuel increased by 9% to 4.5 TWh, while wind farms generated 20% more electricity, reaching 1.27 TWh.
• Expenditures on investments increased by 2% year-on-year in the reported period to PLN 7 billion.