28/2023

28/2023
Execution of an Annex to the Multi-Year Agreement with ENEA Wytwarzanie Sp. z o.o.

Current Report No. 28/2023

Date of preparation: 29 December 2023


Subject: Conclusion of Annexes to the Multi-Year Agreement with ENEA Wytwarzanie Sp. z o.o.

General legal basis: Article 17(1) of MAR – confidential information

 

Content:
The Management Board of Lubelski Węgiel Bogdanka S.A. with its registered office in Bogdanka (hereinafter referred to as the “Company” or “Party”) hereby reports that on 29 December 2023 it executed with Enea Wytwarzanie Sp. z o.o. (hereinafter referred to as the “Buyer” or “Party”) with its registered office in Świerże Górne, Annexes to the Multi-Year Agreement No. UW/LW/01/2012 (hereinafter referred to as the “Multi-Year Agreement”).

The Multi-Year Agreement was the subject of current reports published in the period from 2012 to 2022. The most recent information on amendments to the agreement was made public by Reports No. 10/2021, 19/2021, 23/2021, 11/2022 and 27/2022 published on 30 April 2021, 09 July 2021, 04 October 2021, 16 December 2021, 15 June 2022 and 30 December 2022, respectively.


The subject of the Agreement is the sale of steam coal by the Company to ENEA Wytwarzanie Sp. z o.o.


In the concluded Annexes to the Multi-Year Agreement, the Parties set new dates for the performance of deferred deliveries from 2022 and 2023, which the Company reported in Current Reports No. 27/2022, dated 30 December 2022, and No. 17/2023, dated 17 July 2023, and increased the total volume of coal deliveries provided for in the Agreement.

Accordingly, the Parties redefined the volumes of deliveries in 2024-2036. In addition, the Parties agreed on the price of coal deliveries in 2024.

As a result of the execution of the Annexes, the value of the entire Multi-Year Agreement in effect from 2017 to 2036 will be PLN 32,385 million net, i.e. 5.3% less than the value stated in Report No. 27/2022 dated 30 December 2022, the value of the Multi-Year Agreement in the period from 2023 to 2036 will be PLN 26,410 million net, i.e. 5.6% less than the value stated for this period in Report No. 27/2022 dated 30 December 2022, while in the period from 2024 to 2036 the value of the Multi-Year Agreement will amount to PLN 23,650 million net, and takes into account the increase of delivery volumes by approx. 20% in these years.


The remaining terms of the Multi-Year Agreement remain unchanged and do not deviate from the market standards used in agreements of this type.

The Management Board considers the above information important due to the dominant share of the customer in the Company's delivery portfolio.