Estimation of selected financial and operating data for the period from 1 January to 31 December 2023

2/2024

28.02.2024 18:44

Art. 17 sect. 1 of MAR – inside information.

Contents of the report

The Management Board of the company Zespół Elektrociepłowni Wrocławskich KOGENERACJA S.A. („Parent Company”, „the Company”) disclose the preliminary selected consolidated financial and operating data for the period from 1 January to 31 December 2023.

Accordingly to preliminary estimates after 12 months of 2023:
• sales of electricity amounted to 2 599 GWh (including Parent Company 1 058 GWh),
• sales of heat amounted to 10 695 TJ (including Parent Company 9 470 TJ),
• the consolidated revenue from sales amounted to approximately PLN 3 164 million,
• the consolidated gross profit on sales amounted to approximately PLN 993 million,
• the consolidated EBITDA amounted to approximately PLN 520 million,
• the consolidated net profit amounted to approximately PLN 257 million, including the consolidated net profit attributable to the shareholders of the Parent Company amounted to approximately PLN 256 million (PLN 17.16 per share),
• the consolidated net cash-flow amounted to approximately PLN 29 million,
• capital expenditures amounted approximately to PLN 658 million.

Consolidated revenues from the sale of electricity amounted to PLN 1 848 million, of which PLN 1 166 million was generated by EC Zielona Góra. Consolidated revenues from heat sales also increased in 2023 and amounted to PLN 1 042 million. In 2023, average heat sales prices increased, with a lower sales volume due to higher average temperatures in 2023.

Pursuant to 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, KOGENERACJA S.A. Group included in selling costs for 2023 an estimated write-down for the Price Difference Payment Fund Price for December in the amount of PLN 554 million (including KOGENERACJA S.A. PLN 27 million and EC Zielona Góra S.A. PLN 527 million).

The Group's result was significantly influenced by the recognition of a one-off event regarding the estimated costs of a possible refund of a gas surcharge by a subsidiary in the amount of PLN 126.7 million, in connection with the annual adjustment of costs incurred in centrally dispatched coal-fired units for 2022 and 2023:
• according to data for 2022, the average annual cost of natural gas purchased by the subsidiary - EC Zielona Góra S.A. - was lower than the average annual cost of coal used to generate electricity in centrally dispatched units. Based on the above, the President of the Energy Regulatory Office issued a decision on the negative amount of the annual adjustment for 2022 and the need to pay funds in the amount of PLN 34.9 million to the account of Zarządca Rozliczeń S.A.
• as at December 31, 2023, using the approach consistent with the decision of the President of the Energy Regulatory Office regarding the annual adjustment for 2022 and to the best of our knowledge, the amount of the negative annual adjustment for 2023 was determined at PLN 91.8 million.

The company reserves that the values presented above are estimated and still in the process of preparation. The final values will be presented in the report for 2023, the publication of which is scheduled for March 19, 2024.

Signatures of persons representing the company

Date Name Position and function
2024-02-28 Dominik Wadecki President of the Management Board
2024-02-28 Krzysztof Kryg Vice-President of the Management Board