Current Report No.: 8/2021
Current Report No.: 8/2021
Date of Preparation: 12 March 2021
Issuer's Abbreviated Name: ENEA S.A.
Subject: Information on preliminary financial and operating results for 2020
Legal Basis: Article 17(1) of the Market Abuse Regulation - confidential information
Body of the report:
In connection with the adoption, on 12 March 2021, by the Management Board of ENEA S.A. ("Company", "Issuer"), of information on preliminary financial and operating results of the ENEA Group for 2020, the Company hereby publishes the said preliminary results.
Consolidated financial results of the ENEA Group for 2020:
- Revenue from sales and other income: PLN 18,195 million,
- EBITDA: PLN 3,302 million,
- Profit (loss) before tax: PLN -2,604 million,
- Net profit (loss) for the reporting period: PLN -2,234 million;
- Net profit/(loss) attributable to shareholders of the parent company: PLN -2,268 million.
EBITDA in the various operating areas:
- Mining: PLN 470 million,
- Generation: PLN 1,530 million,
- Distribution: PLN 1,313 million,
- Trading: PLN -15 million.
Selected operating highlights:
- Net coal production: 7.6 million tons,
- Total net electricity generation: 22.5 TWh,
- Sales of distribution services to end users: 19.4 TWh,
- Sales of electricity and gaseous fuel to retail customers: 21.1 TWh.
The EBITDA result generated by the ENEA Group in 2020 was driven largely by the following factors (compared to 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 offset to a certain degree by the higher selling price) in connection with the unfavorable oversupply of coal in the market, with a simultaneous decrease in employee benefit costs due to the subsidy obtained from anti-crisis shield.
In the Generation Area, a significant decrease in EBITDA was recorded in the System Power Plants Segment, driven down by the absence of a factor such as the reversal of the provision for the acquisition of the Skoczykłody wind farm in 2019 and a decrease in the margin on generation coupled with a simultaneous increase in the margin on trading and the Balancing Market. In the Heat Segment and the RES Segment, an increase in EBITDA was recorded.
In the Distribution Area, the increase in EBITDA was driven by higher margins on licensed activities (affected by, among others, a higher rate of the fixed and variable grid charge in the approved 2020 tariff and higher revenues from grid connection fees) as well as a better 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 valuation of CO₂ contracts. 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.
Consolidated financial results of the ENEA Group for Q4 2020:
- Revenue from sales and other income: PLN 4,731 million,
- EBITDA: PLN 667 million,
- Profit (loss) before tax: PLN -2,694 million,
- Net profit (loss) for the reporting period: PLN -2,191 million;
- Net profit/(loss) attributable to shareholders of the parent company: PLN -2,206 million.
EBITDA in the various operating areas:
- Mining: PLN 145 million,
- Generation: PLN 321 million,
- Distribution: PLN 319 million,
- Trading: PLN -74 million.
Selected operating highlights:
- Net coal production: 2.1 million tons,
- Total net electricity generation: 5.6 TWh,
- Sales of distribution services to end users: 5.1 TWh,
- Sales of electricity and gaseous fuel to retail customers: 5.5 TWh.
Standalone financial results of ENEA S.A. for 2020:
- Revenue from sales and other income: PLN 6,191 million,
- EBITDA: PLN -186 million,
- Profit (loss) before tax: PLN -3,398 million,
- Net profit (loss) for the reporting period: PLN -3,357 million.
These preliminary results take into account the impact of the impairment allowances recognized on shares in and generating assets of ENEA Wytwarzanie Sp. z o.o., as was disclosed by the Issuer in Current Report No. 7/2021 of 25 February 2021. The key factors affecting the impairment allowances resulted from changes in the market prices of CO₂ emission allowances, electricity, energy origin certificates and forecasts of macroeconomic indicators.
The final results will be presented in the consolidated financial statements of the ENEA Group and the standalone financial statements of ENEA S.A. for 2020, the publication of which is scheduled for 25 March 2021.
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).
