Current Report No. 9/2019

Belongs to:

  • Reports

Date: 16 May 2019

Subject: Estimated financial results for Q1 2019 of ENERGA Group

Legal basis: Article 17 Section 1 of the Market Abuse Regulation – confidential information

The Management Board of ENERGA SA hereby reports preliminary estimates of selected financial and operational data for Q1 2019.

 

Financial and operational data for Q1 2019:

EBITDA of the Group: PLN 554 million, including:

EBITDA of the Distribution Business Line: PLN 548 million,

EBITDA of the Generation Business Line: PLN 118 million,

EBITDA of the Sales Business Line: PLN -95 million.

 

Distribution of electricity: 5,811 GWh.

Gross production of electricity: 1,025 GWh.

Sales of electricity (retail): 4,968 GWh.

 

The Distribution Business Line’s EBITDA was higher than the previous year, reaching PLN 548 million, thanks to increase in the distribution margin (including grid losses) had a considerable impact on the operating profit, among others as a result of a favorable estimation of grid losses, which was partially offset by higher OPEX costs.

The higher EBITDA of the Generation Business Line was mainly due to revenues growth from energy sales and higher revenues from sale of green property rights. The above factors were partially offset by, among others, a higher cost of key fuels consumption for production, a higher cost of emission rights purchase and lower revenues from heat sales and distribution.

The negative EBITDA of the Sales Business Line in the first quarter of 2019 was mostly due to the Act of 28 December 2018 on amending the Act on Excise Duty and Certain Other Acts, as subsequently amended.

As of submission of ENERGA Group’s estimated results, no implementing regulations for the amended Act had been published, therefore, no detailed information was available on how sales prices should be adjusted for a significant group of customers.

Therefore, the Sales Business Line Sales has continued to invoice majority of the customers at the lower prices arising from the Act in its late 2018 version, while not receiving any compensation. The estimated loss of revenue for the Business Line on that account was at PLN 209 million in the first quarter of 2019.

The presented values are estimates and as such are subject to change.

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