Pkp Cargo S A : Current Report No. 36/2020 of 02 November 2020 - Giving consent to incur a liability by entering into an agreement with PKP Energetyka S.A.

The Management Board of PKP CARGO S.A. ('Company', 'Buyer') hereby reports that on 02 November 2020 the PKP CARGO S.A. Supervisory Board gave its consent to incur a liability by entering into an agreement on successive purchase of diesel fuel for traction vehicles ('Agreement') by and between PKP CARGO S.A. and PKP Energetyka S.A. ('Seller') (jointly referred to as 'Parties').

The Agreement pertains to successive purchase of diesel fuel for traction vehicles at the fuel stations (in 18 locations specified in the Agreement) owned by PKP Energetyka S.A.

The Agreement will be signed for the period from 1 January 2021 to 31 December 2030. The Parties have the right to terminate the Agreement but no earlier than 5 years from the date of entering into it, with a 12 months' notice period.

The net expected value of the Agreement during its term will total PLN 718,250,000.00 (with a gross value of PLN 883,447,500.00). The diesel fuel purchase agreement is a 'value-based agreement', without the requirement to utilize the volume of oil and the total net value specified therein.

Legal basis:
Article 17 Section 1 of Regulation (EU) No. 596/2014 of the European Parliament and of the Council on Market Abuse