Energa reports a robust Q4 and grows its EBITDA in full-year 2017

Estimated financial and operating data indicate that the Energa Group improved its results in all three operating segments and that the Group’s EBITDA rose to PLN 525 million from PLN 498 million in the previous year. This means that in full-year 2017 the Energa Group’s EBITDA climbed 7%, clearly exceeding the PLN 2 billion watermark.

Traditionally, the Distribution Segment was the biggest contributor to consolidated EBITDA. Its estimated earnings before interest, taxes, depreciation and amortization in the period from October to December totaled PLN 382 million and in full-year 2017 they totaled PLN 1,723 million.

The results of the Generation Segment improved significantly in 2017. This segment’s estimated EBITDA surged upward 29%, attributable mainly to favorable weather conditions conducive to the generation of electricity from wind and hydro and to high output figures in the Ostrołęka power plant.

In turn, the Sales Segment’s estimated EBITDA in Q4 was PLN 61 million. It more than doubled in full-year 2017 compared to 2016. This was driven by improving the margin on electricity sales, higher volume and expanding the product and service offering addressed to a steadily growing, 3-million-strong client base.

Preliminary estimates of selected financial and operating data

The Group increased electricity distribution, production and sales volume year-on-year. In full-year 2017, Energa Group’s EBITDA grew to PLN 2.17 billion from PLN 2.03 billion one year ago.

“Based on preliminary performance estimates, the Energa Group may deem last year successful. The concerns of some market players did not materialize. The cost optimization process and sorting out issues related to agreements the Group entered into in the past that were not always beneficial are producing positive outcomes”, says the President of Energa’s Management Board Daniel Obajtek. “The robust performance of our most important segment, the Distribution Segment albeit generated on higher network maintenance costs is a positive development. As we have announced, we are planning investments in the Distribution Segment to curtail these types of costs in the medium and long run.”

Preliminary estimates of selected financial and operating data

These figures are estimates and as such are subject to change. The Energa Group is slated to publish its 2017 annual report on 15 March 2018.