Energa SA Management Board's recommendation on distribution of the Company's net profit for 2024
Belongs to:
- Current reports
Current Report No. 14/2025
Date: 30 April 2025
Subject: Energa SA Management Board's recommendation on distribution of the Company's net profit for 2024
Legal basis: Article 17 (1) of MAR - inside information
The Management Board of Energa SA ("Company") informs that on 30 April 2025 it decided to recommend to the General Meeting of Energa SA to transfer the Company's net profit for 2024 in the amount of PLN 306,117,805.86 to increase the supplementary capital, which will result in no dividend payment.
Retaining profit in the Company is necessary to achieve the goals set in the "Strategic Development Plan of the Energa Group for 2024-2030" ("SDP") and to implement the investments described in the "Long-Term Strategic Investment Plan of the Energa Group for 2024-2030 " ("LTSIP").
In accordance with the current version of the LTSIP, the Energa Group plans to spend significant outlays on the construction of CCGT power plants in Ostrołęka and Grudziądz, the construction of new renewable energy sources ("RES") as well as the modernization and expansion of the distribution grid. Total outlays planned for the years 2024-2030 will amount to approx. PLN 47.9 billion.
The capital expenditures included in the LTSIP are necessary to adapt the Energa Group to the current and expected changes in the market and regulatory environment and to strengthen its market position. Considerable funds are necessary to effectively implement this ambitious investment plan. To acquire such funds, the Company, among others, has concluded agreements with ORLEN S.A., its strategic shareholder, for the financing of LTSIP projects, namely construction of gas-steam power stations in Ostrołęka and Grudziądz, as well as the construction or purchase of RES projects. However, in order to provide funds to finance the investments included in the LTSIP, it is also necessary that the net profit for 2024 is retained in the Company.
The existing and planned investments will bring measurable results, such as an increase in the EBITDA: it is assumed that achievement of the LTSIP targets will result in a significant increase in the consolidated EBITDA in 2030 as compared to 2024. Consequently, this should translate to measurable benefits for the Company's shareholders in connection with an increase in its value.
Retaining profit in the Company will allow for maintaining the cost effectiveness of debt service and maintaining a safe level of debt ratios, both in the context of the current situation and future demand for financial resources.
Thanks to the transferring the net profit to increase the Company's supplementary capital, there will be lower demand for external financing.