PGNiG: Recognition of effect of accounting for settlement under annex to Yamal contract

The Management Board of Polskie Górnictwo Naftowe i Gazownictwo SA (“PGNiG” or the “Company”) announces that the effect of accounting for a settlement resulting from an annex signed to the contract for sale of natural gas to the Republic of Poland between PGNiG and PAO Gazprom/OOO Gazprom Export of September 25th 1996, announced by the Company in Current Report No. 28/2020 of June 15th 2020, will be recognised in the second quarter of 2020 as follows:- operating costs associated with natural gas will be reduced by PLN 5.689m;- gas inventories will be reduced by PLN 42m;- property, plant and equipment will be reduced by PLN 5m.The financial results for the second quarter of 2020 will be influenced also by positive exchange differences arising on the measurement of mutual accounts (approx. PLN 300m) and by income tax. The advance corporate income tax payment of the PGNiG tax group for June 2020 amounted to approximately PLN 1.1bn.