INTER RAO Lietuva Group announces financial results for 1H 2017 – Reliable supplier of electricity has increased the revenues and has earned EUR 4.8 million of Net profit

• Revenues from sales in 1H 2017 increased by over 5% y/y to EUR 87.48 million, thanks to higher volume of electricity sold.
• Group’s gross profit equalled EUR 9.53 million, versus EUR 10.76 million in 1H 2016.
• Group’s EBITDA amounted to EUR 7.15 million versus 8.52 million in 1H 2016 while EBITDA margin reached 8.2 percent compared to 10.3 percent a year ago.
• Operating profit reached EUR 5.90 million, versus EUR 7.25 million in1H 2016.
• Group’s net profit amounted to EUR 4.84 million compared to EUR 5.88 million a year ago.
• Electricity sales volume increased to 2 367 GWh, compared to 2 131 in1H 2016.

–  The results of INTER RAO Lietuva Group during the reporting period were mostly influenced by competition between market participants, which resulted inlower electricity sale prices on the market.At the same time, the purchase prices stayed flat y/y. The Group has proven to be a reliable supplier of electricity and has sold a larger amount of electricity thanks to signing more contracts with clients in Lithuania and Latvia this year and thanks to better meteorological conditions for producing electricity at the Vydmantai wind power plant. The INTER RAO Lietuva Group generated a gross profit on sales of more than EUR 9.5 million in H1. EBITDA stood at EUR 7.2 million and the net profit reached EUR 4.8 million with margins of 8.2 and 5.5 percent respectively. The Group generated earnings of EUR 0.24 per share – says Giedrius Balčiūnas, CEO at INTER RAO Lietuva.

Key figures of IRL Group

Revenue from sales

The Group’s total consolidated sales revenue in January-June 2017 was equal to EUR 87 million, 5.7 per cent more than in the first half of 2016. Total revenue increased thanks to higher amounts of electricity traded and favorable meteorological conditions, which positively influenced electricity generation and sales from the wind park owned by the Group. The rise in the amount of electricity traded was mainly influenced by increased sales on the Lithuanian market and at the Latvian subsidiary, a result of higher number of contracts signed with clients on these markets.

The increase in sales revenues came on the back of higher trade volumes, but the average price of electricity sold was lower at the same time. As a result, the cost of electricity sold outpaced the increase in total revenues. Group’s cost of sales in January-June of 2017 amounted to EUR 78 million, 8.2 per cent more than during the first six months of 2016. The increase was a result of higher volumes of electricity traded and stable prices of electricity purchased.

Earnings

Gross profit of the Group in January-June of 2017 amounted to EUR 9.5 million versus EUR 10.8 mln in H1 2016, while the gross profit margin decreased to 10.89 per cent (12.99 per cent a year ago).

Group’s operating profit over the same period reached EUR 5.9 million versus EUR 7.2 mln a year earlier, with the operating profit margin decreasing to 6.75 per cent from 8.76 per cent. In segment breakdown, the power generation segment increased its contribution to Group operating profit to nearly 17% from just 4% a year before thanks to favorable meteorological conditions at the Vydmantai wind power plant and despite accounting for just 3% of the Group’s top line.

Operating results by segment

Group’s net profit in the 1st half of 2017 amounted to EUR 4.8 million, compared to EUR 5.9 million for the same period a year ago. The profit margin decreased from 7.1 per cent a year ago to 5.5 per cent in the accounting period.