The Enea Group discloses its performance after the first three quarters of 2022
While operating in a volatile and challenging market environment, after the first three quarters of 2022, the Enea Group generated almost PLN 2.3 billion in EBITDA (down by nearly 18% y/y). In the reporting period, the Group’s net profit shrank by over 32.5% y/y to PLN 906.8 million. The net debt to EBITDA ratio was -0.18 compared to 0.31 in the corresponding period of 2021. Despite the tough market environment, the Group is unswervingly involved in the transformation of the Polish power sector by supporting the development of new technologies and innovative solutions.
- During the first three quarters of 2022, the Enea Group generated nearly PLN 2.3 billion in EBITDA (down by almost 18% y/y) and nearly PLN 22.7 billion in revenue from sales (up by over 48% y/y).
- Net profit in the reporting period reached PLN 906.8 million (down by 32.5% y/y).
- Enea and Poznańskie Centrum Superkomputerowo-Sieciowe signed a letter of intent in preparation for harnessing the potential of digital technologies in the power sector and supporting the digital transformation of this branch of the economy.
- The Enea Group launched the Spoil Tip Reclamation and Operation Program.
During the first three quarters of 2022, the Enea Group generated nearly PLN 2.3 billion in EBITDA (down by PLN 492 million y/y, or almost 18%). Revenue from sales climbed from the corresponding period of last year to PLN 22.7 billion. At the same time, net profit in the reporting period reached PLN 906.8 million (down by 32.5% y/y). The Group spent PLN 1.7 billion on investments from January to the end of September 2022, chiefly in the distribution area.
The Generation area posted an EBITDA of 281.3 million (down by PLN 760.1 million y/y). The lower EBITDA resulted predominantly from the poorer performance in the System Power Plants Segment, down by PLN 644.8 million y/y, which was largely caused by the establishment of provisions for onerous contracts and a lower margin on the Balancing Market. The Generation area’s EBITDA was also affected by a decline in the RES Segment’s performance (down by PLN 146.5 million y/y), chiefly as a consequence of the establishment of a provision of onerous contracts and an increase in the costs of biomass consumption. In the Heat Segment, an increase in EBITDA by PLN 31.3 million y/y was recorded, largely due to a greater unit margin. In the first three quarters of 2022, the Enea Group generated 20.2 TWh of electricity, up more than 3% y/y. The volume of energy generated from renewable sources declined in y/y terms to nearly 1.5 TWh. Sales of heat increased only slightly to 4.9 PJ (petajoules).
The Distribution area posted an EBITDA of PLN 981.8 million (down by PLN 49.4 million y/y). This was caused by an increase in operating expenses along with a concurrent greater realized margin on licensed activities and a better result on other operating activities. During the first three quarters of 2022, Enea Operator provided nearly 15.2 TWh of distribution services to end users. In this period, more than 35.9 thousand renewable energy sources (including micro-installations) with a total capacity of 346 MW were connected to Enea Operator’s distribution grid. Currently, over 144 thousand micro-installations with a total capacity of 1,176 MW are connected to Enea Operator’s distribution grid.
The Trading area posted an EBITDA of PLN 293.1 million (up by PLN 116.8 million y/y). The increase in EBITDA was driven by a greater realized margin on the retail market and a higher result on revaluation of CO₂ contracts. At the same time, the costs of provisions for claims arising from terminated contracts related to RES property rights increased, as did provisions related to onerous contracts.
During the first three quarters of 2022, the sales volume of electricity and gaseous fuel to retail customers stood at 17.8 TWh, down by 2.3% y/y. The decrease was caused by a change to the customer portfolio. In the business customer segment, the sales volume of electricity increased by 259 GWh, or 1.9% y/y. In the retail customer segment, the sales volume of electricity declined by 149 GWh, or 4.1% y/y.
The Lubelski Węgiel Bogdanka Group’s revenue was PLN 2,030.1 million. The Mining area posted an EBITDA of PLN 675.8 million (up by PLN 131.1 million y/y). The LWB Group’s EBITDA was PLN 676.4 million, operating profit was PLN 374 million and net profit was PLN 310.3 million. Both output and sales of commercial coal in the period under analysis stood at 7.2 million tons. In Q3 alone, output was 1.6 million tons, while sales reached 1.9 million tons.
COMMENTS ON THE ENEA GROUP’S PERFORMANCE AFTER THE FIRST THREE QUARTERS OF 2022:
Rafał Mucha, Vice-President of the Enea Management Board for Financial Matters
“We are operating in a challenging and volatile market and regulatory environment. The Group's EBITDA stood at nearly 2.3 billion with net profit of the reporting period at PLN 906.8 million, signifying a rather sizeable y/y decrease in both these indicators. The net debt to EBITDA ratio was -0.18, vis-à-vis 0.31 in the corresponding period of 2021. These results confirm stability of the Group’s financial standing. We are working on spinning off coal assets from our structures. Their transfer to NABE will improve our ability to obtain funding for Enea’s green transformation. Due to the freezing of electricity prices in 2023 for retail customers, we are preparing to handle increased customer traffic, including by receiving their statements and timely settling accounts with authorized customers,” said Rafał Mucha, Enea’s Vice-President for Financial Matters.
Lech Żak, Enea’s Vice-President for Strategy and Development
“We are focusing on new solutions and joining projects that utilize innovative proposals and digital technologies in the power sector. We are the first company to undertake the installation of infrastructure in our areas with a view to attaining the objectives of the Spoil Tip Reclamation and Operation Program and obtaining the first commodity batches at the beginning of 2023. The coal to be obtained from the spoil tips will be used by the power sector, while the reclamation of these storage areas will enable their development for renewable energy sources in the future. In collaboration with Poznańskie Centrum Superkomputerowo-Sieciowe, we have launched joint research and development endeavors to develop leading-edge products and services that will be offered to our customers. As the digital transformation of the power system generates new challenges for us, our ambition is to develop digital technologies in the power sector,” said Lech Żak, Enea’s Vice-President for Strategy and Development.
Artur Wasilewski, Acting President of the Lubelski Węgiel Bogdanka Management Board, Vice-President for Economic and Financial Matters
“Our recent weaker performance was caused predominantly by problems of a geological nature which occurred in the third quarter. A sudden and unexpected increase in operating pressure occurred in longwall 3/VII/385, resulting in its clamping. This directly affected both our mining and sales volumes. We have prepared a remedial plan that is currently being implemented without compromising the safety of our mining crews,” said Artur Wasilewski, Acting President of the Lubelski Węgiel Bogdanka Management Board, Vice-President for Economic and Financial Matters.
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