Preliminary financial data of Ignitis Group for 9 months of 2021

Preliminary financial data of Ignitis Group (hereinafter – the Group) for 9 months of 2021:

In January – September 2021, the Group generated revenue of EUR 1,165.4 million, which is 34.1% more compared to a respective period of 2020 (EUR 868.8 million). The growth was driven by higher B2C electricity sales in the Customers & Solutions business segment as a result of increase in electricity market prices and higher consumption compared to the same period in 2020. In Networks segment higher energy consumption resulted to increase of distributed volumes which led to increase of revenue. Also, revenue increased in Flexible Generation segment as a result of the CCGT unit’s commercial activities caused by higher clean spark spread. Additionally, in Green Generation segment increase of revenue was caused by the start of operations of Kaunas and Vilnius CHP’s WtE unit in August 2020 and March 2021, respectively.

The Adjusted EBITDA in January – September 2021 was equal to EUR 210.4 million, i.e. 28.4% more compared to a respective period of 2020 (EUR 163.9 million). Adjusted EBITDA results grew in all of Group’s operating segments:

• Green Generation segment result grew due to start of operations of Kaunas and Vilnius CHP’s WtE unit as well as improved result of Kaunas HPP mostly due to higher electricity market price and higher produced volumes as a result of higher water level in Nemunas river;
• Customers & Solutions grew due to temporary positive effect on gas performance as a result of gas inventory revaluation due to increasing gas prices in the market (EUR 31.1 million in January – September 2021) which is likely to switch direction if gas prices normalize;
• Flexible Generation segment grew due to higher commercial activity result from CCGT unit due to higher clean spark spread;
• Networks segment result grew mostly due to higher distributed volumes as a result of overall higher energy consumption compared to respective period of 2020. Higher volumes effect amounted to EUR 12.4 million in January – September 2021, this effect will level off over the course of the year as annual ROI and compensated D&A is fixed for the year, but allocated between the months based on distributed volumes.

¹ The Group’s preliminary (2021) and actual (2020) result of adjusted EBITDA is presented after the adjustments made by the management by eliminating the impact of one-off factors. These adjustments are intended to disclose the results of the Group’s operating activity without taking into consideration atypical, one-off factors or factors that have no direct relation with the current period of operations. All adjustments made by the management are disclosed in the Group’s interim and annual reports which are available at Group’s website ().

² As the Group notified (), pursuant to the Networks Methodology update ( in Lithuanian), RAB calculation method was changed from LRAIC to similar to historical cost model. Thus, ROI and D&A for 2018-2021 were recalculated based on actual historical investments (instead of the original LRAIC model, which was applied for the period 2016-2021). Recalculated difference approximately amounts to EUR 160 million which is due to be returned. According to preliminary estimate by the Group, from this amount, EUR 48 million is related to 2020 and EUR 44 million is related to 2021. From the date of the Resolution these amounts are treated as temporary regulatory differences and will have to be returned to the consumers (96% of payable to be returned over 2032-2036), therefore Adjusted EBITDA has been recalculated retrospectively. Negative impact for Adjusted EBITDA for the period of January – September 2021 amounts to EUR 37.9 million and for the respective period of 2020 – EUR 35.2 million. The Group’s preliminary (January – September 2021) and actual (January – September 2020) result of adjusted EBITDA disclosed in this announcement is presented after assessing the impact of the factors described.

For more information please contact:

Artūras Ketlerius

Head of Public Relations at Ignitis Group