Energa summed up another good quarter

Owing to increasingly closer integration with the ORLEN Group, the Energa Group continued reporting improved financial and operating results in Q1 2022. The Energa Group’s consolidated EBITDA for the initial three months of 2022 amounted to PLN 1.08 bn. Not only was it 42% greater yoy but also broke another historic record of quarterly results since 2013. Furthermore, the Group’s net profit rose by as much as 59% (PLN 0.61 bn) and its revenue grew by 44% (PLN 4.94 bn). Some 39% of electricity produced during the reported period originated from the RES assets.

– Energa’s incorporation into the ORLEN Group was a key element of the process of establishment of a robust corporation which invests in renewable energy sources and thus contributes to development of a modern low-emission segment of the power industry. Energa has been consistently increasing the RES share in its electricity generation. The Group closed Q1 2022 with over 20% increase in RES compared to the previous year. We are developing photovoltaic projects such as Gryf, Mitra and five small PV farms with capacity of up to 1 MW each. Energa Green Development, a company tasked with expansion of the Group’s onshore RES potential, holds approx. 200 MW of potential investment plans in its project portfolio. This clearly demonstrates Energa’s potential and growth direction that are consistent with the ORLEN2030 strategy. Another quarter of solid financial performance proves that the decision to integrate the businesses was right. The ORLEN Group, a strong partner, supports the company and enables its continued growth, argues Daniel Obajtek, President of the Management Board of PKN ORLEN, Energa’s acting President of the Management Board.

The Distribution Business Line accounts for the majority of the Energa Group’s consolidated EBITDA and net profit in Q1 2022, respectively approx. 66% and 58%. Both figures were further boosted by the Generation Business Line accounting, respectively, for approx. 28% and 32%. Finally, the Sales Business Line contributed approx. 5% of the Group’s EBITDA and approx. 6% of its consolidated net profit.

During the reported period, the generation assets of the Energa Group produced a total of 1.3 TWh of electricity (24% growth yoy). Energa Operator’s distribution grids transported 6.2 TWh (7% more yoy) in Q1 2022. The quarterly retail sales amounted to 4.7 TWh.

The quarterly capital expenditure reached PLN 316 m. Of that amount, PLN 276 m was allocated to investment in distribution. As a result, 641 km of power lines were built and upgraded and 14,000 new customers were connected, with RES sources of combined capacity of 366 MW built.

Consistent delivery of investment projects

In Q1 2022, the Energa Group focused on further pursuing its key investment projects, among others, completing construction of the peak load and reserve boiler house the Elbląg CHP (launched toward the end of April 2022) or selecting the contractor to deliver a system of gas engines for the Kalisz CHP (the contract was signed in mid April 2022). During that time, Energa Green Development strived to secure a building permit and conditions for connection for the 1st stage of construction of PV Mitra farm with planned installed capacity of approx. 65 MW. Five small photovoltaic farms of total capacity of up to 1 MW each, built in the territory of three voivodships, namely Warmia and Mazury, Kujawy and Pomerania and Wielkopolska, are also under construction.

During the reported period, the Energa Group successfully addressed the last remaining issues in connection with the coal-fired power generation unit project in Ostrołęka. During the main auction in the capacity market for the 2026 supply year, two planned gas-fired power plants of the Energa Group, CCGT units in Ostrołęka and Grudziądz, contracted a total of 1,214 MW of the capacity obligation under 17-year contracts. Furthermore, on 24 March 2022 CCGT Ostrołęka Sp. z o.o. special-purpose vehicle issued a notice to proceed (NTP) to the general contractor of the gas unit in Ostrołęka (745 MWe of net installed capacity). Thus, another milestone was reached in the construction of that generation asset, critical from the point of view of the country’s energy security.