Listed energy group Polenergia's offshore wind farm project companies - Baltic II and Baltic III - have signed booking and pre-contract agreements with Iemants for the preparatory works involving designing and construction of offshore substations, Polenergia said in a market filing. The company informed that the subject of the booking agreements is a reservation of the contractor's and key subcontractors' assets for the scheduled period and obligation of both sides to continue negotiating the final EPC agreements. The booking agreements involve starting the necessary preparatory work by the contractor and ordering the materials with long delivery times.

The offshore wind farms Baltic II and Baltic III are the companies developing the two offshore wind farm projects as part of Polenergia's and Equinor Wind Power's interchange. Polenergia holds a 50% stake in them. As stated, the reservation agreements can be terminated without cause, but this will result in an obligation to pay to the contractor the remuneration for the preliminary work performed, a cancellation fee and cancellation and reservation fees to the subcontractors.

As stated, these fees can amount up to approximately EUR 65.6 million for both projects. Analogous costs may be incurred by the companies if, due to the companies' actions, final contracts are not signed by August 1, 2024.