ENERGA Group: revenue, EBITDA and net profit growth in the first half of 2013

The ENERGA Group posts the summary of its financial results for the first half of 2013 with revenues of PLN 5.8 billion, EBITDA of PLN 1.1 billion and net profit of PLN 533 million.

Revenues of PLN 5.8 billion in H1 2013

The ENERGA Group’s sales revenues were PLN 5.8 billion in the first six months of 2013, PLN 174 million (3%) up as compared to the same period in the previous year. The improvement in the results was primarily linked to the rising distribution tariff.

In the first two quarters the Group also grew its EBITDA to PLN 1.127 billion (with a margin of 19%), a 6% increase in comparison to same period previous year, which was amounted PLN 1.067 billion. This result would have been even higher had a non-recurring event not taken place as captured in the Group’s cost of goods sold, i.e. the impairment of Power Plant B in Ostrołęka for the amount of approximately PLN 123 million in Q1. In addition, higher costs of electricity purchases contributed to the increase in the cost of goods sold. Had it not been necessary to take this impairment charge, the Group’s EBITDA in this period would have exceeded PLN 1.25 billion and would have been approximately 17% higher year on year.

In turn, the ENERGA Group’s net profit was PLN 533 million in the first six months of 2013, making it slightly higher (up 4%) than the net profit in H1 2012. Besides the factors indicated above, financial expenses materially affected the result as they rose by 8% (PLN 11.5 million) year on year – primarily on account of the interest expenses on the Group’s growing external debt.

The ENERGA Group also improved its key operating ratios in H1 2013. Electricity sales were 15.44 TWh, up 9% over the same period last year.

The Group’s gross electricity generation was 2.5 TWh in this period.

More than PLN 1 billion on investments

The ENERGA Group’s capital expenditures exceeded PLN 1 billion in H1 2013 and were more than PLN 200 million (28%) higher than in the same period in the previous year (PLN 801 million). In line with the Group’s strategy focusing primarily on investments to develop and modernize the grid, ENERGA-OPERATOR had the largest share in that amount (PLN 553 million). Thanks to these investments ENERGA is steadily enhancing energy security and the reliability of supply. In the first two quarters of this year the Group supplied more than 10 TWh to more than 2.9 million clients.

In accordance with the ENERGA Group’s Investment Program for 2013-2021 capital expenditures in the distribution segment will be PLN 12.5 billion. In June of this year the ENERGA Group signed an agreement with the European Bank for Reconstruction and Development (EBRD) to diversify the sources for financing investments. Pursuant to this agreement ENERGA-OPERATOR will receive PLN 800 million in support, which will help it commission a sophisticated metering system forming part of the smart grid solutions being implemented by the Group.

In addition to investments in the distribution segment the Group is concentrating on growing environmentally-friendly sources of energy. That is why in June of this year ENERGA and PGE Polska Grupa Energetyczna jointly acquired wind farms from the Danish company DONG Energy. This deal expanded ENERGA’s generation portfolio to include the Karcino Wind Farm with a capacity of 51 MW in the Western Pomeranian Region and projects with a capacity of roughly 252 MW. As a result, the Group’s installed RES capacity grew to more than 0.4 GW. In turn, electricity generation using RES was 0.92 TWh in H1 2013.

In June, ENERGA and its partner signed an agreement with the European Bank for Reconstruction and Development to acquire shares in the assets of IBERDROLA Renewables Polska. This agreement enabled the company to acquire two wind farms with a total installed capacity of 114 MW, namely Karścino in the Western Pomeranian Region and Bystra in the Pomeranian Region and a bundle of projects with a capacity of roughly 1,186 MW.