GRUPA AZOTY ZAKŁADY AZOTOWE PUŁAWY SA (6/2018) Extension of cooperation with Lubelski Węgiel "Bogdanka" S.A.

The Management Board of Grupa Azoty Zakłady Azotowe Puławy SA (hereinafter: "Company") informs that on February 26, 2018 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 sale of power coal to the Company. As a result of the Annex: - the term of the Agreement is extended until December 31st 2022 (previously until December 31st 2021), - the quantitative conditions for 2022 and - volumes for 2019 -2021 are increasing. In connection with the conclusion of the Annex, the estimated value of the Agreement from its conclusion to December 31, 2022 will total (without taking into account possible increases, deviations and tolerances) PLN 1 340 million net (ie around 22.40% more than the value given in the current report No. 35/2017 of 10/10/2017), of which in the years 2018-2022, the value will amount to approximately PLN 577 million net. Coal supplied on the basis of the Annex is intended for the company's combined heat and power plant operating in the Company. The other terms of the Agreement do not change and do not differ from the market standards used in contracts of this type. The Management Board of the Company considers the above information to be significant due to the prolongation 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 CHP plant, providing a raw material with the parameters required by the Company, with low transport costs due to the fact that this mine is closest to the Company. 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 Union of 12 June 2014, No. L 173/1, as amended).

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

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