Energa with record results in 2021
Energa Group closed its first full year as part of ORLEN Group with the highest EBITDA result in its history – PLN 2.4 billion, a YoY increase of 20% – and revenues – PLN 13.7 billion, a YoY improvement of 10%. Consolidated net profit was at a high level of over PLN 0.9 billion. The consolidated operating profit (EBIT) almost doubled, amounting to nearly PLN 1.3 billion.
In 2021, Energa Group’s generation sources produced 4.1 TWh of electricity (30% YoY increase). More than 1.4 TWh came from renewable energy sources, with hydroelectric power plants accounting for the largest share with 894 GWh of production (+21% YoY). Energa Operator’s distribution lines transmitted 23.1 TWh of energy in the same period (6% YoY improvement), while retail sales of electricity reached a level comparable to 2020 – 18.6 TWh.
– Thanks to the growing integration with ORLEN Group, the leader of the energy transformation in Central and Eastern Europe, last year Energa Group significantly strengthened its position in the energy sector. This is clearly indicated by the historically record-high revenues and EBITDA result. This is also evidenced by the intensification of investment activities towards zero- and low-carbon sources and the modernization of the distribution network. There should be no doubt that we enter 2022 stronger, bolstered by synergies with our dominant shareholder. This allows us to focus on further challenges related to the energy transformation – said Iwona Waksmundzka-Olejniczak, President of the Management Board of Energa SA.
Energa invests more
The Group’s annual capital expenditures amounted to PLN 2.1 billion, 22% more than in the previous year, of which 72% was spent on investments in the Distribution Business Line. Thanks to this, among others, 3,000 km of power lines were built and upgraded (in total they already amount to 193,000 km), and 70,000 new customers were connected to the network (3.2 million in total as at the end of 2021). In other business lines of Energa Group, investment funds were allocated e.g. to modernization of hydroelectric power plants of the company Energa OZE or street lighting managed by Energa Oświetlenie.
New strategy, new dynamics
Last year, Energa’s ongoing integration with ORLEN Group was clearly reflected in the “Strategic Development Plan of Energa Group for 2021-2030” adopted in May. The plan responds to the strategic objectives set for the energy sector in the “ORLEN 2030 Strategy” – the development of zero- and low-carbon generation sources and distribution infrastructure. According to the long-term investment plan, in this decade Energa Group will allocate approximately PLN 31.5 billion to investments. Approximately PLN 16.9 billion will be allocated to the Distribution Business Line, approximately PLN 13.6 billion – to the Generation Business Line, and approximately PLN 1.1 billion – to the Sales Business Line and other companies.
In 2021, significant progress was also made on the Ostrołęka gas and steam unit project. On June 25, an annex to the agreement with the general contractor was concluded, changing the subject matter of the contract from construction of a coal-fired power unit to construction of a gas-fired power plant with a capacity of approximately 750 MW. In December, the Ostrołęka power plant project received support from the capacity market in the form of a 17-year contract for approximately 696 MW. The total revenue from the contract since 2026 may amount to at least PLN 4.73 billion. Work was also continued on the investment program at the combined heat and power plants in Elbląg and Kalisz. In the first one, the construction of a reserve-peak boiler house with a thermal capacity of 114 MWt was in progress, while in the second one, the construction of a similar unit with a capacity of approximately 50 MWt began. Ultimately, together with the gas engine units planned at both plants, and, in the case of Elbląg, also with a biomass unit, these investments will diversify the heating sector in both cities in terms of fuel and will significantly reduce the emission intensity of heat production.
In 2021, Energa Group also expanded its renewable energy potential. Among others, the Group began the acquisition of the PV Wielbark photovoltaic farm in Mazury. It also implemented the construction of six farms with a total installed capacity of approximately 25 MW in the following regions: Wielkopolskie (two farms in Przykona municipality, including PV Gryf), Kujawsko-Pomorskie (another farm in Czerników) and Warmińsko-Mazurskie (two farms in Samolubie and one in Pierzchały).