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ZE PAK Group publishes financial results for Q3 2017

"The last quarter was the best one for ZE PAK SA Group in 2017 in terms of production volume as well as financial results. The volume of energy production was higher than in the first and second quarter of 2017 and only slightly lower than in the third quarter of 2016. The drop in production in the third quarter of 2017 in relation to the corresponding quarter of the previous year resulted mainly from the lack of production from the biomass unit, contributed by the situation on the green certificates market. Improvements to the financial results in the past quarter were also contributed by the lower purchase price of CO₂ allowances. The Group's results continue to show our cost discipline. I would like to emphasize that the net profit achieved in Q3 would have been higher by PLN 38m if the one-off event related to the need to increase the reclamation reserve was eliminated, as reported by the Company in October.

We are constantly taking steps to optimize the Group's operations. We are aware of the next year challenges, so we adjust the structure of the Group and its costs to reduce the scale of operations together with terminating the operation of Elektrownia Adamów with the beginning of 2018. We continue to make every effort to obtain all necessary formal approvals in order to be able to operate a new lignite coal mine - Ościslowo, and we are ready to cooperate with all the institutions involved." – Adam Kłapszta, The President of ZE PAK SA Management Board

In 3Q 2017 the volume of production amounted to 2.31 TWh of electricity (decrease by 7.23% compared to 3Q 2016)
Electricity sale in 3Q 2017 amounted to 3.13 TWh (decrease by 12.08% compared to 3Q 2016)
Consolidated sale revenues in 3Q 2017 amounted to PLN 635 million (decrease by 7.36% compared to 3Q 2016)
Average electricity price achieved in 3Q 2017 amounted to PLN 177.33 / MWh (i.e. by 2.98% higher than the one achieved in 3Q 2016)
EBITDA of the Group for 3Q 2017 amounted to PLN 141 million (decrease by 2.17% y/y) which is 22.22% of EBITDA margin
In 3Q 2017 the Group has recorded the net profit in the amount of PLN 66 million, that means a decrease by 16.73% in relation to the analogous period of 2016
Total capital expenditures realized by the Group companies in the third quarter of 2017 amounted to PLN 39 million, compared to PLN 15 million in the corresponding period of 2016
The net debt / EBITDA ratio fell to 0.65 at the end of September 201 (an improvement from 0.87 recorded at the end of September 2016)

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