GRUPA AZOTY ZAKŁADY AZOTOWE PUŁAWY SA (35/2017) Continuation of cooperation with Lubelski Węgiel "Bogdanka" S.A.

The Management Board of Grupa Azoty Zakłady Azotowe Puławy SA (hereinafter: "Company") informs that on October 10, 2017 an annex was signed (hereinafter: "Annex") to the Long-Term Agreement for the Sale of Coal Energy from January 8, 2009, concluded between the Company and Lubelski Węgiel "Bogdanka" ARE with headquarters in Bogdanka (hereinafter: "Contract"). The subject of the Agreement is the supply and sale of power coal for the Company. The Annex specifies new delivery terms during its term: - price and quantity for 2018, - quantity for 2019 -2021; the price for individual years of the indicated period will be determined by negotiation or based on a pricing formula based on market prices. As a result of the conclusion of the Annex, the estimated value of the Agreement since its conclusion until December 31, 2021 is now a total of PLN 1,095 million net (excluding possible increases, deviations and tolerances), of which in 2018-2021 it will amount to approximately 333 PLN million net, with higher prices and quantities than assumed in the previous annex to the Agreement, about which the Company informed in the current report No. 28/2016 of December 6, 2016. Coal supplied on the basis of the Annex is intended for the Company's plant CHP plant and does not take into account the demand related to the plans for the construction of a new coal block. The other terms of the Agreement remain unchanged and do not differ from the market standards used in this type of agreements. The Management Board of the Company considers the above information to be significant due to the continuation of cooperation with Lubelski Węgiel "Bogdanka" S.A. and a significant change in the value of the Agreement. Lubelski Węgiel "Bogdanka" S.A. is the main supplier of coal for the company's combined heat and power plant operating within the Company, providing a raw material with the parameters required by the Company, with low transport costs due to the fact that this mine is the closest to the Company. As a result of the conclusion of Annex Lubelski Węgiel "Bogdanka" S.A. will satisfy in 2018 over 70% of the demand of the Company's coal-fired CHP plant. Legal basis: art. 17 sec. 1 of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6 / EC of the European Parliament and of the Council and Commission directive 2003 / 124 / EC, 2003/125 / EC and 2004/72 / EC (Official Journal of the European UnionEuropean Union of June 12, 2014, no. L 173/1 with later d.).

Source: company website, investor relations, current and periodic reports.

Company information
Company name:Grupa Azoty Zakłady Azotowe Puławy SA
Adress: Al. Tysiąclecia Państwa Polskiego 13 24-110 Puławy
Phone:+48 81 5652833

Copyright © 2017 PolandStockExchange
This website uses cookies (Regulations / Cookie Policy).