ENEA Group closes Q1 2018 with a rise in EBITDA and considerably higher energy generation

The preliminary results for the first quarter of 2018 of ENEA Group show improvement in EBITDA by 5.4% year-on-year. Also the increased generation capacity of the Group stemming from the launch of the new 1,075 MW unit in Kozienice Power Plant and the acquisition of Połaniec Power Plant is clearly visible – according to preliminary data, electricity generation in the first quarter went up by 68.7% year-on-year.

According to the estimates for the January-March 2018 period, the EBITDA of ENEA Group stood at PLN 702 million, which is by 5.4 per cent more than in the corresponding period of the previous year. The Group improved its EBITDA in three operation areas. The highest EBITDA, of PLN 297 million, was achieved in the Distribution area (an increase of 13.4%). The EBITDA of the Generation area totalled PLN 227 million (an increase of 12.4%), while of the Trading area – PLN 53 million (up by 3.9%). Only the Mining area, where temporary geological difficulties were encountered, recorded a lower EBITDA than the year before. The net profit attributable to shareholders of the parent company amounted to PLN 240 million, compared to PLN 295 million in the previous year.

The first quarter of this year clearly shows the effects of acquisitions and investments in generation assets. Electricity generated by ENEA Group amounted to 6.3 TWh, which is by as much as 68.7% more than in the corresponding period of 2017. Also the volume of electricity and gas fuel sales to retail customers increased to 5.6 TWh from 5.0 TWh (by 11.4% year-on-year), and sales of distribution services to end customers went up to 5.18 TWh from 4.98 TWh (by 4.2% year-on-year).

– These results should be considered satisfactory in the light of temporary events in the mining area and modernisation activities in the generation area. According to information from LW Bogdanka, the geological difficulties have come to an end, and therefore we believe that the expected result level will be restored in the quarters to come. The high growth of electricity generation confirms the reasonableness of the acquisition of Połaniec Power Plant. A potential to improve results can also be seen in this area, also thanks to Unit 11 in Kozienice Power Plant – said Piotr Olejniczak,  Financial Vice-President of ENEA. – Both the improvement and the growth in EBITDA recorded in the Distribution area are gratifying to us, as we are consistently improving the grid quality and implementing a number of innovative projects in this area – added Piotr Olejniczak.

The final results will be presented in the extended consolidated quarterly report of ENEA Capital Group for the first quarter of 2018, to be published on 24 May 2018.

TABLE: Estimates of selected consolidated financial and operating data of ENEA Group for first quarter of 2018