INTER RAO Lietuva Group announces financial results for 1H 2018 – Group revenues increased by 22% y/y, the net profit amounted to EUR 2.4 million

  • Revenues from sales in 1H 2018 increased by over 22% y/y to EUR 107 million thanks to higher volumes of electricity traded.
  • Electricity sales volume increased by 29% y/y, from 2 367 to 3 056 GWh. Group’s gross profit reached EUR 7.5 million, versus EUR 9.5 million in 1H 2017.
  • Group’s EBITDA amounted to EUR 5.0 million versus 7.2 million in 1H 2017, while the EBITDA margin declined to 4.7 per cent compared to 8.2 per cent a year ago.
  • Operating profit reached EUR 3.7 million, versus EUR 5.9 million in 1H 2017.
  • Group’s net profit amounted to EUR 2.4 million compared to EUR 4.8 million a year ago. 

–  The results of all market participants in the Baltics during the 1st half of 2018 were influenced by high electricity prices on the markets. These prices increased by more than 25% y/y, reaching the highs last seen in 2013, but at the same time the average price of electricity sold by the Group to its clients under bilateral agreements was lower. Thus, the cost of sales increased by almost 28%, outpacing the increase in sales revenues. In these challenging market conditions, The Group has managed to fulfil all its contractual obligations to clients and maintain its reputation of a reliable supplier of electricity. The INTER RAO Lietuva Group generated a gross profit on sales of more than EUR 7.5 million in H1 2018. Consolidated EBITDA stood at EUR 5 million and the net profit reached EUR 2.4 million, with margins of 4.7 and 2.2 per cent respectively. The Group generated earnings of EUR 0.12 per share – says Giedrius Balčiūnas, CEO at INTER RAO Lietuva.

Key figures of IRL Group

Financial figures 1st half 2018 1st half 2017
Sales (EUR thousand) 107,153 87,482
Gross profit (EUR thousand) 7,523 9,526
Gross profit margin (%) 7.02% 10.89%
Operating profit (EUR thousand) 3,693 5,904
Operating profit margin (%) 3.45% 6.75%
EBITDA (EUR thousand) 5,019 7,154
EBITDA profit margin (%) 4.68% 8.18%
Net profit (EUR thousand) 2,390 4,836
Net profit margin (%) 2.23% 5.53%
Number of shares (thousand) 20,000 20,000
Earnings per share (EUR) 0.12 0.24

Revenues from sales

Total Group sales revenues in January-June of 2018 were equal to EUR 107 million, a 22.5 per cent increase over the first half of 2017. Revenues increased thanks to higher volumes of electricity traded. That increase was mainly the result of higher sales on the Lithuanian market.

The increase in sales revenues came on the back of higher trade volumes, but at the same time the average price of electricity sold by the Group was lower y/y. As a result, the cost of electricity sold outpaced the increase in total revenues. Group’s cost of sales increased by 27.8 per cent if compared to the 1st half of 2017, faster than the increase in sales revenues during the same period. The cost of sales of electricity produced stayed at almost the same level as in the corresponding period of 2017, while the cost of sales of electricity purchased and sold were higher by 23.8 per cent compared to the same period a year ago.

Earnings

Gross profit of the Group in January-June of 2018 amounted to EUR 7.5 million, while the gross profit margin decreased to 7.0 per cent (10.9 per cent a year ago).

Group’s operating profit over the same period amounted to EUR 3.7 million, while the operating profit margin decreased to 3.4 per cent from 6.7 per cent a year ago. In segment breakdown, the contribution of the power generation segment to Group operating profit decreased to nearly 12% from 17% a year before due to worse meteorological conditions at the Vydmantai wind power plant.

Operating results by segment

Segment Electricity trade Power generation
(EUR thousand) H1 2018 H1 2017 H1 2018 H1 2017
Revenues 105,104 84,892 2,049 2,590
Operating profit 3,261 4,925 432 979
Operating margin 3,1% 5,8% 21,1% 37,8%

Group’s net profit in the 1st half of 2018 amounted to EUR 2.4 million, compared to EUR 4.8 million in the same period a year ago. The profit margin decreased from 5.3 per cent in H1 2017 to 2.2 per cent in the accounting period.

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