Current Report No.: 49/2020
Current Report No.: 49/2020
Date of Preparation: 18 November 2020
Issuer's Abbreviated Name: ENEA S.A.
Subject: Information on preliminary financial and operating results for Q1-Q3 2020
Legal Basis: Article 17(1) of the Market Abuse Regulation - confidential information
Body of the report:
In connection with the adoption, on 18 November 2020, by the Management Board of ENEA S.A. ("Company", "Issuer"), of information on preliminary financial and operating results of the ENEA Group for Q1-Q3 2020, the Company hereby publishes the said preliminary results.
Consolidated financial results of the ENEA Group for Q1-Q3 2020:
- Revenue from sales and other income: PLN 13,464 million,
- EBITDA: PLN 2,635 million,
- Profit before tax: PLN 90 million,
- Net profit (loss) for the reporting period: PLN -44 million;
- Net profit (loss) attributable to shareholders of the parent company: PLN -62 million.
EBITDA in the various operating areas:
- Mining: PLN 325 million,
- Generation: PLN 1,209 million,
- Distribution: PLN 994 million,
- Trading: PLN 59 million.
Selected operating highlights:
- Net coal production: 5.5 million tons,
- Total net electricity generation: 16.9 TWh,
- Sales of distribution services to end users: 14.3 TWh,
- Sales of electricity and gaseous fuel to retail customers: 15.6 TWh.
The EBITDA result generated by the ENEA Group in Q1-Q3 2020 was driven largely by the following factors (compared to Q1-Q3 2019):
In the Mining Area, the segment's lower result is attributable mainly to a decrease in revenue from sales of coal (lower sales volume at a higher price) in connection with the unfavorable oversupply of coal in the market.
In the Generation Area, the segment's result was favorably affected by the increase in revenue from sales of electricity (higher energy prices) and property rights, despite the negative deviation of the costs of coal with transport and CO2 emission allowances.
In the Distribution Area, the higher result was driven by higher margins on licensed activities (affected by, among others, a higher rate of the fixed grid charge in the approved 2020 tariff) and a higher result on other operating activities (driven mainly by changes in the provisions for grid assets and higher revenue from contractual penalties and indemnities).
In the Trading Area, the segment's result was favorably affected by the increase in the average sales price of energy and the updated CO2 valuation. At the same time, the energy purchase prices increased (mainly due to the increase in the price of CO2 emission allowances) and so did the costs of environmental obligations.
Standalone financial results of ENEA S.A. for Q1-Q3 2020:
- Revenue from sales and other income: PLN 4,566 million,
- EBITDA: PLN -98 million,
- Profit (loss) before tax: PLN -486 million,
- Net profit (loss) for the reporting period: PLN -462 million.
These preliminary results take into account the impact of the impairment loss on the stake held by ENEA S.A. in the share capital of Polska Grupa Górnicza S.A. on the Issuer's standalone and consolidated financial statements for the said period to the extent and in the amounts disclosed by the Issuer in Current Report No. 47/2020 of 27 October 2020.
The final results will be presented in the extended consolidated quarterly report of the ENEA Group for Q3 2020 scheduled to be published on 26 November 2020.
Please note that the term EBITDA is defined as the value of operating profit (loss) + depreciation and amortization + impairment losses on non-financial non-current assets (values for the reporting period). EBITDA is a standard measure of efficiency of a business activity, in particular for the industry in which the Issuer's Group operates. The above definition and methodology for its calculation are the same as those used to calculate this indicator in the Issuer's periodic reports. The definition above is also included in the glossary of terms and abbreviations available on the Company's website (https://ir.enea.pl/slownik).