Current Report No.: 47/2022
Date of preparation: 16.12.2022
Abbreviated name of the Issuer: CIECH S.A.
Legal basis: Art. 17.1 of the MAR – inside information
Subject: Sale of CO2 emission allowances and conclusion of hedging transactions.
Text of the report:
The Management Board of CIECH S.A. (the "Company" or "Issuer") with reference to current report No. 38/2021 of December 29, 2021, herewith informs that on 16 December 2022, CIECH Soda Deutschland GmbH GmbH & Co. KG (“CSD”) and CIECH Energy Deutschland GmbH (“CED”; jointly “Subsidiaries”) sold together 467.700 units of CO2 emission allowances ("Sale of Allowances" and “EUA Units”, respectively), originating from free allocation and from units previously purchased on the market. The market value of EUA Units sold amounts to EUR 38.9 million (equivalent of PLN 182.7 million) as per current value of EUA Unit, i.e. EUR 83,25/EUA (equivalent of PLN 390,72).
At the same time, the Subsidiaries and Ciech Soda Polska S.A. concluded agreements securing the purchase of 467.700 units of CO2 emission allowances on the forward market, with a settlement date in April 2023 ("Hedging"). The Hedging settlement dates fall before the deadline for the required redeeming of the EUA Units in the amounts corresponding to the CO2 emissions for the year 2022.
The Sale of Allowances and the Hedging (jointly: "Transaction") have an impact on the corresponding increase in the level of cash in CSD and CED and have an impact on reducing the consolidated net debt of the CIECH Group by approx. PLN 182.7 million, calculated as at December 31, 2022. The Transaction has an insignificant impact on the level of consolidated EBITDA.
Legal basis: Article 17.1 of the Regulation of the European Parliament and of the Council (EU) No. 596/2014 of 16 April 2014 on Market Abuse (the Market Abuse Regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC (Official Journal of the European Union L No. 173, p. 1).
Signatures of persons representing the Company:
Dawid Jakubowicz – President of the Management Board
Kamil Majczak – Member of the Management Board
