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INTER RAO Lietuva Group announces financial results for 1Q 2019 – Revenues increased by 80 per cent y/y, net profit more than doubled to EUR 6.4 million

  • Revenues from sales in 1Q 2019 increased by 80 per cent y/y to EUR 107.1 million thanks to higher volume of electricity sold in all the markets of presence.
  • Group’s gross profit on sales increased to EUR 8.0 million versus EUR 5.3 million in 1Q 2018.
  • Consolidated EBITDA amounted to EUR 7.8 million versus 4.1 million in 1Q 2018, while the EBITDA margin reached 7.3 per cent compared to 6.8 per cent a year ago.
  • Operating profit reached EUR 6.0 million, versus EUR 3.4 million in 1Q 2018.
  • Group’s net profit amounted to EUR 6.4 million, versus to EUR 2.6 million a year ago.
  • The net profit margin increased from 4.3 per cent a year ago to 6.0 per cent in the accounting period.
  • Electricity sales volume increased to 2 134 GWh, compared to 1 481 GWh in 1Q 2018.

–  In the first quarter of 2019, INTER RAO Lietuva Group managed all the challenges presented by dynamic changes in the electricity markets. The increase in sales was caused by higher amount of electricity traded. The market price of electricity purchased was higher y/y in all the markets, and the price for consumers rose as well compared to the same period a year ago. Significant contribution to the rising profit came from successful hedging activities of the Group, which are an integral part of the risk management system implemented within the Group. At the same time, the Polish operations and the wind park results had positive impact on earnings as well. Net profit in the 1st quarter of 2019 more doubled and reached EUR 6.4 million. Consolidated EBITDA increased to EUR 7.8 million with the EBITDA margin at 7.3 per cent. The Group has earned EUR 0.32 per share – says Giedrius Balčiūnas, CEO at INTER RAO Lietuva.

Key figures of IRL Group

Financial figures 1st quarter 2019 1st quarter 2018
Sales (EUR thousand) 107,072 59,457
Gross profit (EUR thousand) 7,958 5,275
Gross profit margin (%) 7.43% 8.87%
Operating profit (EUR thousand) 5,978 3,440
Operating profit margin (%) 5.58% 5.79%
EBITDA (EUR thousand) 7,821 4,051
EBITDA profit margin (%) 7.30% 6.81%
Net profit (EUR thousand) 6,416 2,564
Net profit margin (%) 5.99% 4.31%
Number of shares (thousand) 20,000 20,000
Earnings per share (EUR) 0.32 0.13

Revenue from sales

The total consolidated sales revenue in January-March of 2019 was equal to EUR 107.1 million, 80 per cent more than in the first 3 months of 2018. Total revenue increased on the back of higher amounts of electricity traded in all the markets of presence, with growth visible primarily on the Lithuanian market.

The market price of electricity purchased was higher on all markets compared to the same period in 2018 and the price for consumers rose as well compared to the same period a year ago.

Earnings

As a result, the Group’s gross profit in January-March of 2019 increased by 50.9% y/y to EUR 8.0 million (compared to EUR 5.3 million a year ago), while the gross profit margin decreased to 7.4 per cent (vs. 8.9 per cent). Significant contribution to the rising profit came from successful hedging activities of the Group, which make up an integral part of the risk management system implemented within the Group. The increase in Group’s profitability was also supported by the Polish operations and wind park results.

The Group’s operating profit in 1Q 2019 increased to EUR 5.0 million from EUR 3.4 million a year before, while the operating profit margin amounted to 5.6 per cent.

In segment breakdown, the core electricity trade segment managed to increase its operating profit by 58% thanks to higher trade volumes. The segment’s operating margin decreased by 0.7 percentage points y/y, to 4.7% in 1Q 2019. The power generation segment witnessed a significant increase of revenues and operating profit due to better meteorological conditions at the Vydmantai wind power plant. As a result, the segment’s contribution to Group operating profit increased to 16.3 per cent in 1Q 2019 from a low of 9.6 per cent a year before.

Operating results by segment

Segment Electricity trade Power generation
(EUR thousand) 1Q 2019 1Q 2018 1Q 2019 1Q 2018
Revenues 105,252 58,346 1,821 1,111
Operating profit 4,972 3,139 1,006 301
Operating margin 4.7% 5.4% 55.2% 27.1%

The Group’s net profit in January-March of 2019 increased by 150 per cent y/y and amounted to EUR 6.4 million. The profit margin also increased, from 4.3 per cent a year ago to 6.0 per cent in the accounting period.

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