Interim report for the first nine months of 2020
Today, AB Ignitis Grupė (hereinafter – Ignitis Grupė or the Company) announces the consolidated Group’s interim report for the first nine months (9M) of 2020.
The Group’s adjusted earnings before interest, taxes, depreciation, and amortisation (adjusted EBITDA) was EUR 199.3 million, up 6.1% increase versus the same period last year. The result benefited from growth in the Networks segment, efficient use of the Kruonis PSHP, a strong performance in the main units of our Flexible generation division and expansion into the Finnish gas market.
Adjusted net profit increased by 8.1% versus the same period 2019, reaching EUR 80.6 million during the first nine months of 2020. Adjusted return on equity (for the last 12 months) was 8.4%.
Investments decreased by 14.9% due to COVID-19 shifting construction schedules at the Vilnius CHP and lower Networks segment investments, primarily because of a decrease in new customer connections and upgrades and lower contractors fees. Decrease was partly offset by increased investments into Kaunas CHP and Pomerania WF.
Net debt rose by 6.2% to EUR 1,027 million. The main driver of net debt increase was the payment of a dividend (EUR +70.0 million).
The green share of generation decreased from 97.8% to 50.7% as a result of significant increase of electricity generated from gas fired Elektrėnai Complex.
Operational capacity of green generation of Ignitis Grupė increased by 24 MW due to Kaunas CHP Plant commencing commercial operations in August 2020. The total green generation portfolio of the Group increased by 170 MW following the agreement to acquire the Polish solar PV development portfolio. Our Green Generation portfolio was also further diversified by signing a framework agreement for the development of offshore wind farm projects in Lithuania (700 MW) and Scotland (800-950 MW) with the leading developer Ocean Winds.
Key indicators for the reporting period:
| 9M 2020 | 9M 2019 | ∆ | ∆,% | ||
| EBITDA APM | EURm | 229.6 | 153.9 | 75.7 | 49.2% |
| Adjusted EBITDA* APM | EURm | 199.3 | 187.8 | 11.5 | 6.1% |
| Net profit | EURm | 108.3 | 43.7 | 64.6 | 147.8% |
| Adjusted net profit APM | EURm | 80.6 | 74.5 | 6.1 | 8.2% |
| Investments APM | EURm | 270.8 | 318.1 | (47.3) | (14.9%) |
| FFO APM | EURm | 207.6 | 141.6 | 66.0 | 46.6% |
| FCF APM | EURm | (1.0) | (155.5) | 154.5 | 99.4% |
| 2020.09.30 | 2019.12.31 | ∆ | ∆,% | ||
| Net debt APM | EURm | 1,026.8 | 966.5 | 60.3 | 6.2% |
| ROE LTM APM | % | 9.3% | 4.4% | - | - |
| Adjusted ROE LTM APM | % | 8.4% | 8.0% | - | - |
| ROCE LTM APM | % | 7.0% | 3.8% | - | - |
| Adjusted ROCE LTM APM | % | 6.9% | 6.9% | - | - |
| FFO LTM/Net debt APM | % | 24.9% | 19.6% | - | - |
* Consolidated EBITDA result is adjusted by (1) eliminating the deviation of actual and regulated revenues whereby the Group’s future financial results will be adjusted; (2) eliminating the results of atypical, one-off factors and factors, which have no direct relation with the reporting period. All adjustments made by management are disclosed in interim and annual reports of the Group.
Earnings call
In connection with the interim report, an earnings call for investors and analysts will be held on Tuesday, 17 November at 1:00 p.m. EET.
The earnings call, after registering, can be followed live at:
/register/8511235258703899408
Questions can be directed in advance to Company’s IR or when registering for the earnings call.
Presentation slides will be available prior to the conference call:
The interim report will be available for download at:
For additional information, please contact:
Communications
Artūras Ketlerius
Investor Relations
Ainė Riffel-Grinkevičienė
+370 643 14925
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