ENEA is significantly improving its financial results

The first quarter has proved to be very successful for the Poznań energy group. Enea recorded a more than 20-percent increase in net revenues from sales and profit.  The operating result relating to electricity trading and generation also improved significantly.

The good start to 2011 is a continuation of the positive trends from the previous twelve months.  The Company is consistently improving its key performance indicators.

The Enea Capital Group’s net revenues from sales in the first quarter amounted to PLN 2,472 million which, in relation to Q1 2010, constituted a growth of over PLN 450 million or 22.3 per cent. The Group’s operating profit also increased impressively by over 20 per cent, which was almost PLN 283 million and was 24.8 per cent higher than the result achieved in the same period last year (an increase of PLN 56.2 million). Achieving this is the result of an increase in revenues from operating activity by almost PLN 465 million with an increase of operating costs by PLN 408 million at the same time.

The biggest increase in the operating result occurred in the Generation segment. It came to over 52 per cent with respect to Q1 2010 (from PLN 69.7 million to PLN 106 million). This was primarily due to: an increase in revenues from electricity sales (by PLN 90.6 million) being the effect of electricity sales greater by 350 GWh and a rise in revenues from certificates of origin by PLN 17.6 million.   In Q1 2011, Elektrownia “Kozienice” S.A. generated less energy than in the previous year, but significantly increased the volume of transactions involving trading in electricity. In that same period, the Power Station sold 93.4 per cent of the electricity it generated on the Polish Power Exchange. In the company Elektrownie Wodne which supervises renewable energy sources in the Group, there was an increase in electricity production and sales prices, which resulted in increased revenue from sales of electricity and certificates of origin.

The second segment to record a significant increase in the operating result is Trade. It increased by 41.9 per cent – from PLN 55.1 million in Q 1 2010 to PLN 78.2 million in the same period this year. The growth in the Trade segment was caused by an increase in the margin and coverage by PLN 26.752 million. In Q1 2011, in order to meet the obligation of purchasing and cancelling property rights, and in connection with an insufficient number of property rights in the register, a provision was created which was larger than that in Q1 2010. After cancelling those rights by the ERO, a provision previously established was dissolved, which caused a reduction in the costs of purchases.

In the Distribution segment, the operating result slightly exceeded (by PLN 300 thousand) its level in Q1 of last year.

In Q1 2011 the ENEA Capital Group significantly increased the rate of return on assets and equity – the ROA ratio rose to 8.8 per cent (by 1.5 percentage points quarter-on-quarter) and the ROE ratio to 12.3 per cent (by 1 percentage point quarter-on-quarter).