Solid Results and New Business Segmentation. Energa Summarises the First Quarter of 2025
Energa Group reported a strong opening of 2025. The first quarter saw an increase in most key financial indicators. EBITDA year-on-year was 7 percent higher, amounting to PLN 1.2 billion, and net profit (at PLN 0.5 billion) improved by 12 percent. Energa Group also began operating according to a new division into business lines.
In the reporting period, Group revenue was slightly lower – down 5 percent – compared to the same period in 2024.
“The slight decrease in total revenue was due to the high base effect and lower compensation from the Price Difference Payment Fund by about 81 percent,” explains Magdalena Kamińska, Vice-President of the Management Board of Energa S.A. “Excluding the funds from the Price Difference Payment Fund, the Group’s other revenue was 7 percent higher than a year earlier at PLN 5.8 billion. The marked increase in EBITDA and net profit mean solid performance for the Energa Group, based on which we can continue to effectively develop our business activities and strengthen our position as one of the leaders of the ongoing transformation in the Polish energy industry”.
Operating profit (EBIT) also increased by 5% compared to the same period last year, closing at PLN 0.8 billion.
In the first quarter, Energa Group produced 0.9 TWh of electricity (including about 42 percent from RES) and transmitted 6.2 TWh. The volume of retail sales was 4.7 TWh.
New business segmentation
In order to meet the changes that the energy transition entails, starting in the first quarter of 2025, Energa Group began operating according to a new division into business lines.
“The new business segmentation reflects the directions we are pursuing. One of the key pillars of our development is the consistent expansion of the capacity potential installed in RES, hence for renewables and related activities we have established a standalone business line. We have thus separated them more clearly from conventional sources and heating, which require a decarbonisation process,” stresses Sławomir Staszak, President of the Management Board of Energa S.A.
Companies related to the generation area, most of which were previously consolidated under the Generation Business Line, have been assigned to three new Business Lines: New Energy, Professional Energy, and Heating. The first brings together all RES assets and renewable operations, as well as the energy storage area. The Professional Energy Line includes conventional power generation – both coal-based and low-carbon gas sources. Heating, on the other hand, brings together all combined heat and power plants (CHPP) as well as heat plants operating within Energa Group.
The new Retail Business Line consists of Energa Obrót only. The other companies that have operated in the existing Sales Line, namely Energa Oświetlenie or Enspirion, make up the new Line: Other Operations, together with Energa Logistyka, Energa Informatyka i Technologie and Energa Finance AB, based in Stockholm. The Distribution Business Line is the only one within which there have been no significant changes.
Distribution as pillar of performance
Distribution traditionally had the highest share in the financial results achieved by Energa Group in the first quarter, with a share of as much as 83 percent in the consolidated EBITDA result. The solid and stable performance of this Line is mainly due to lower electricity purchase costs to cover network losses than a year earlier.
The second Business Line with the largest contribution to the Energa Group’s financial results was New Energy, despite the fact that it experienced a marked decline in EBITDA compared to the same period last year. This was due to lower energy production at hydroelectric plants and wind farms, for which hydrological and weather conditions were responsible. However, not all RES recorded declines in generation – the Group’s photovoltaic installations produced as much as 5 times more energy than in the same period a year earlier.
A marked increase in production and financial performance was recorded by the Professional Energy Line. This is the result of more frequent forced operation of the Ostrołęka B Power Plant, which additionally benefited from favourable market prices for the sale of electricity and from the restructuring and renegotiation of coal purchase agreements.
“The first quarter of this year highlighted the importance of a diversified and balanced generation mix, which Energa Group is striving to achieve by developing not only RES, but also low-carbon gas sources. The nature of the operation of renewable sources means that periodically there may be declines in energy production from renewable sources and the need to make up for the shortfall in demand with more controllable sources,” says Piotr Szymanek, Vice-President of the Management Board of Energa S.A.
Given recent reporting periods, such an unusual situation, i.e. an increase in production using conventional assets combined with a decrease in generation from renewable energy sources, took place in Energa Group in the first quarter. It illustrates the reason for the need for investment in balancing sources, which Energa Group is pursuing by developing low-carbon gas assets in addition to renewables.
High capital expenditure
Capital expenditure in the first quarter of 2025 amounted to PLN 746 million, down just 2 percent year-on-year, due in part to the schedules of the Group’s various investments. The largest share of this amount, PLN 507 million (68 percent), accounts for the Distribution Business Line, which in the reporting period built and upgraded 736 km of distribution lines, connecting 12,000 new customers and 303 MW of new RES sources.
In the first quarter of this year, Energa Operator, the leader of the Line, also secured more than PLN 7.6 billion in financing under the National Recovery and Resilience Plan, which will support the company’s investment programme planned for a total of about PLN 40 billion by 2035. Under the programme, Energa Operator wants to build and modernise about 21,000 km of distribution lines, which will allow, among other things, to connect ca. 9 GW of new renewable sources and 350,000 new customers.
In the New Energy Business Line, which accounted for about 15 percent of expenditure (PLN 113 million) in the first quarter, further investments in renewable energy sources were underway, mainly photovoltaic installations – including the nearly completed Mitra PV farm project with a capacity of about 65 MW. The Heating Business Line continued to implement its investment programme at the Elbląg and Kalisz CHPP plants. In the latter, among other things, construction was completed of a peak load and reserve heating boiler with a thermal capacity of about 50 MWt, which was put into operation in early April this year. In the reporting period, expenditure on this Line amounted to PLN 17 million.
The Professional Energy Business Line was allocated 12 percent of capital expenditure, not only for the continuation of advanced projects to build combined cycle power plants (CCGT) in Grudziądz and Ostrołęka, but also for the start of modernisation of boiler No. 3 at the Ostrołęka B Power Plant, whose emission level will fall thanks to the increased possibility of co-firing biomass to 50 percent of the energy share (compared to the current 30 percent).