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INTER RAO Lietuva Group announces financial results for 1H 2019 – 84% increase in sales, net profit quadrupled to EUR 10.3 million

  • Revenue from sales in 1H 2019 increased by over 84% y/y to EUR 198 million thanks to higher volumes of electricity traded and higher average price of electricity sold.
  • Electricity sales volume increased by 30% y/y, from 3 056 to 3 970 GWh.
  • Group’s gross profit reached EUR 14.6 million, versus EUR 7.5 million in 1H 2018.
  • Group’s EBITDA amounted to EUR 12.8 million versus 5.0 million in 1H 2018, while the EBITDA margin increased to 6.5% compared to 4.7% a year ago.
  • Operating profit reached EUR 10.2 million, versus EUR 3.7 million in 1H 2018.
  • Group’s net profit amounted to EUR 10.3 million compared to EUR 2.4 million a year ago.
  • Trading volumes in Poland increased from 151 GWh to 590 GWh y/y.
  • Earnings per share reached EUR 0.52 compared to EUR 0.12 in 1H 2018.

“The beginning of this year was very favourable to INTER RAO Lietuva Group. We witnessed an impressive growth across all major activities of our company. The Group traded more electricity and the average price of electricity sold was higher y/y. The wind park, owned by the Group, produced more electricity compared to 1st half of 2018, due to better meteorological conditions. Thus, revenue from produced electricity sales amounted to EUR 2.8 million, 34.5 per cent more than in the same period a year ago, while cost of sales of produced electricity shrunk compared to the same period a year ago, due to the change of the wind turbines’ maintenance contract. INTER RAO Lietuva Group generated a gross profit on sales of more than EUR 14.6 million in 1st half of 2019. Consolidated EBITDA increased more than twice, to EUR 12.8 million, and net profit quadrupled to EUR 10.3 million, with margins of 6.5 and 5.2 per cent respectively. The Group generated earnings of EUR 0.52 per share,” says Giedrius Balčiūnas, CEO at INTER RAO Lietuva.

Key figures of IRL Group

Financial figures

1st half 2019

1st half 2018

Sales (EUR thousand)

197,588

107,153

Gross profit (EUR thousand)

14,646

7,523

Gross profit margin (%)

7.41%

7.02%

Operating profit (EUR thousand)

10,197

3,693

Operating profit margin (%)

5.16%

3.45%

EBITDA (EUR thousand)

12,760

5,019

EBITDA profit margin (%)

6.46%

4.68%

Net profit (EUR thousand)

10,310

2,390

Net profit margin (%)

5.22%

2.23%

     

Number of shares (thousand)

20,000

20,000

Earnings per share (EUR)

0.52

0.12

Revenue from sales

Total consolidated sales revenue in January-June of 2019 was equal to EUR 198 million, 84.4 per cent more than in the first half of 2018.

The Group’s revenue from trade of electricity in the 1st half of 2019 amounted to EUR 194.8 million, up by 85.4 per cent y/y. Revenue from produced electricity sales reached EUR 2.8 million, 34.5 per cent more than in the same period a year ago. The increase in sales was caused by higher amount of electricity traded and higher average price of electricity sold.

The Group’s cost of sales increased by 83.6 per cent y/y to EUR 182.9 million, which is less than the increase in the sales revenue during the same period. Cost of sales of produced electricity shrunk y/y, due to the change of the wind turbines’ maintenance contract, while the cost of sales of electricity purchased and sold was higher by 84.5 per cent compared to the corresponding period a year ago.

Earnings

Consequently, gross profit of the Group in the period January-June of 2019 amounted to EUR 14.6 million, while the gross profit margin increased to 7.41 per cent (7.02 per cent a year ago).

The Group’s operating profit over the same period amounted to EUR 10.2 million, while the operating profit margin increased to 5.16 per cent from 3.45 per cent a year ago. In segment breakdown, the contribution of the power generation segment to the Group’s operating profit remained at the level of 12 per cent. During the accounting period, Vydmantai wind park, UAB produced more electricity compared to the 1st half 2018, thanks to better meteorological conditions.

Operating results by segment

Segment

Electricity trade

Power generation

(EUR thousand)

H1 2019

H1 2018

H1 2019

H1 2018

Revenue

194,833

105,104

2,755

2,049

Operating profit

8,947

3,261

1,250

432

Operating margin

4,6%

3,1%

45,4%

21,1%

The Group’s net profit in the 1st half of 2019 amounted to EUR 10.3 million, compared to the profit of EUR 2.4 million for the same period year ago. The profit margin increased from 2.23 per cent a year ago to 5.22 per cent in the accounting period.

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