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INTER RAO Lietuva Group announces financial results for 9M 2018 – Net profit increased by 29 per cent y/y and reached EUR 8 million

  • Revenues from sales in 9M 2018 increased by 46.9 per cent y/y to EUR 195.8 million thanks to higher volume of electricity sold.
  • Group’s gross profit on sales increased to EUR 16.4 million, versus EUR 13.2 million in 9M 2017.
  • Consolidated EBITDA increased to EUR 12.7 million versus 9.6 million in 9M 2017, while the EBITDA margin amounted to 6.5 per cent compared to 7.2 per cent a year ago.
  • Operating profit reached EUR 10.8 million, versus EUR 7.7 million in 9M 2017.
  • Group’s net profit amounted to EUR 8 million compared to EUR 6.2 million a year ago.
  • In Q3 alone, the Group posted a net profit of EUR 5.6 million (up 324 per cent y/y), EUR 7.1 million operating profit (up 295 per cent y/y) and EUR 8.9 million gross profit on sales (up 145 per cent y/y) on revenues increasing 93 per cent to 88.7 million.
  • Electricity sales volume increased to 4 385 GWh, compared to 3 564 GWh in 9M 2017.

 “During the reporting period, the INTER RAO Lietuva Group managed to successfully handle risks resulting from a challenging market environment and this year’s unexpected growth of the average electricity prices. The Group sold a larger amount of electricity in the Lithuanian market but produced less electricity at the Vydmantai wind power plant due to worse meteorological conditions namely a lower average wind speed in the region. The INTER RAO Lietuva Group generated a gross profit on sales of EUR 16.4 million in the first 9 months of 2018. EBITDA increased to EUR 12.7 million and the net profit reached EUR 8 million with the margins of 6.5 and 4.1 per cent respectively. In Q3 alone, the Group reached the result of EUR 5.6 million as the net profit. The Group has generated earnings of EUR 0.4 per share,” says Giedrius Balčiūnas, CEO at INTER RAO Lietuva.

Key figures of IRL Group

Financial figures 9 months 2018 9 months 2017
Sales (EUR thousand) 195,836 133,341
Gross profit (EUR thousand) 16,425 13,163
Gross profit margin (%) 8.39% 9.87%
Operating profit (EUR thousand) 10,780 7,699
Operating profit margin (%) 5.50% 5.77%
EBITDA (EUR thousand) 12,743 9,570
EBITDA profit margin (%) 6.51% 7.18%
Net profit (EUR thousand) 7,969 6,197
Net profit margin (%) 4.07% 4.65%
Number of shares (thousand) 20,000 20,000
Earnings per share (EUR) 0.40 0.31

Revenue from sales

Group sales revenue in January-September of 2018 was equal to EUR 195.8 million, a 47 per cent increase compared to the first 9 months of 2017. Total revenue increased on the back of higher volumes of electricity sold. The increase in the amount of electricity traded was mainly influenced by increase in sales on the Lithuanian market. It is worth noting that in Q3 alone the pace of sales revenue growth accelerated versus the first half of the year and reached 93 per cent.

Sales revenue growth came on the back of higher trade volumes and on the higher average price of electricity sold. Group cost of sales in January-September of 2018 amounted to EUR 179.4 million, 49 per cent more than during the first nine months of 2017. The increase was a result of higher volumes of electricity traded. At the same time, in the third quarter alone, the pace of revenue growth was higher (93 per cent) than the increase of electricity purchase costs (89 per cent).

Earnings

Gross profit of the Group in January-September of 2018 amounted to EUR 16.4 million (compared to EUR 13.2 million a year before), while the gross profit margin decreased to 8.4 per cent (9.9 per cent a year ago).

Group’s operating profit over the same period amounted to EUR 10.8 million, while the operating profit margin slightly decreased to 5.5 per cent from nearly 5.8 per cent a year ago.

In segment breakdown, the power generation segment decreased its contribution to Group operating profit to just 6 per cent from 14.9 per cent a year before due to worse meteorological conditions, namely lower average wind speed, at the Vydmantai wind power plant.

Operating results by segment

Segment Electricity trade Power generation
(EUR thousand) 9M 2018 9M 2017 9M 2018 9M 2017
Revenues 192,765 129,736 3,071 3,605
Operating profit 10,138 6,552 642 1,147
Operating margin 5,3% 5,1% 20,9% 31,8%

Group’s net profit in the January-September of 2018 increased by 29 per cent to nearly EUR 8 million, compared to the profit of EUR 6.2 million for the same period a year ago. The net profit margin decreased from 4.7 per cent a year ago to 4.1 per cent in the accounting period.

In Q3 alone net profit reached EUR 5.6 million, increasing over three times y/y. Operating profit rose by 295 per cent to EUR 7.1 million, while gross profit increased more than twice to EUR 8.9 million.

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