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INTER RAO Lietuva Group announces financial results for 1H 2020 – Lower amount of electricity traded with higher margins and net profit of EUR 6.8 million

  • Revenue from sales in 1H 2020 decreased from EUR 197.6 million to EUR 112.3 million y/y. The decrease was caused by lower amount of electricity traded and lower average price of electricity sold.
  • Electricity sales volume decreased by 34% y/y, from 3 970 to 2 605 GWh.
  • Group’s gross profit reached EUR 12.6 million, versus EUR 14.6 million in 1H 2019.
  • Group’s EBITDA amounted to EUR 9.6 million versus 12.8 million in 1H 2019, while the EBITDA margin increased to 8.6% compared to 6.5% a year ago.
  • Operating profit reached EUR 8.1 million, versus EUR 10.2 million in 1H 2019.
  • Group’s net profit amounted to EUR 6.8 million compared to EUR 10.3 million a year ago.
  • Trading volumes in Poland increased from 590 GWh to 915 GWh y/y.
  • Earnings per share reached EUR 0.34 compared to EUR 0.52 in 1H 2019.

“The first half of this year was characterized by historically low electricity prices in the markets of the Group’s operation. As a result, INTER RAO Lietuva Group traded less electricity with lower revenues. Despite this, the profit margins were higher. The wind park, owned by the Group, produced more electricity compared to 1st half of 2019, due to better meteorological conditions. Thus, revenue from produced electricity sales amounted to EUR 3.5 million, 26.4 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,  thanks to the change of the wind turbines’ maintenance contract. INTER RAO Lietuva Group generated a gross profit on sales of EUR 12.6 million in 1st half of 2020. Consolidated EBITDA was EUR 9.6 million and net profit reached EUR 6.8 million, with margins of 8.6 and 6.0 per cent respectively. The Group generated earnings of EUR 0.34 per share,” says Giedrius Balčiūnas, CEO at INTER RAO Lietuva.

Key figures of IRL Group

Financial figures 1st half 2020 1st half 2019
Sales (EUR thousand) 112,286 197,588
Gross profit (EUR thousand) 12,594 14,646
Gross profit margin (%) 11.22% 7.41%
Operating profit (EUR thousand) 8,073 10,197
Operating profit margin (%) 7.19% 5.16%
EBITDA (EUR thousand) 9,637 12,760
EBITDA profit margin (%) 8.58% 6.46%
Net profit (EUR thousand) 6,773 10,310
Net profit margin (%) 6.03% 5.22%
Number of shares (thousand) 20,000 20,000
Earnings per share (EUR) 0.34 0.52

Revenue from sales

Total consolidated sales revenue in January-June of 2020 was equal to EUR 112.3 million, 43.2 per cent less than in the first half of 2019. The decrease in the amount of electricity traded was mainly influenced by the decrease in sales in Lithuanian market.

The Group’s revenue from electricity trading in the 1st half of 2020 was by almost 44.2 per cent less y/y and amounted to EUR 108.8 million. Revenue from produced electricity sales reached EUR 3.5 million, 26.4 per cent more than in the same period a year ago. The decrease in sales was caused by lower amount of electricity traded and lower average price of electricity sold.

The Group’s cost of sales in January-June of 2020 amounted to EUR 99.7 million, 45.51 per cent less than during the first six months of 2019. As a result of the lower amount of electricity traded, the cost of sales of the Group were lower compared to those a year ago. Cost of sales of electricity production shrunk, if compared to the same period a year ago, thanks to the change of maintenance contract of the wind turbines, and cost of sales of electricity purchased and sold was lower by 45.65 per cent if compared to the same period a year ago.

Earnings

The gross profit of the Group in January-June of 2020 amounted to EUR 12.6 million, while the gross profit margin increased to 11.22 per cent (7.41 per cent a year ago).

The Group’s operating profit over the same period amounted to EUR 8.1 million, while the operating profit margin increased to 7.19 per cent from 5.16 per cent a year ago. In segment breakdown, the contribution of the power generation segment to the Group’s operating profit more than doubled to 25,8 percent from 12 per cent y/y. During the reporting period, Vydmantai wind park, UAB produced more electricity compared to the 1st half 2019, thanks to better meteorological conditions.

Operating results by segment

Segment Electricity trade Power generation
(EUR thousand) H1 2020 H1 2019 H1 2020 H1 2019
Revenue 108,804 194,833 3,482 2,755
Operating profit 5,995 8,947 2,080 1,250
Operating margin 5,5% 4,6% 59,7% 45,4%

The Group’s net profit in the 1st half of 2020 amounted to EUR 6.8 million, compared to the profit of EUR 10.3 million for the same period year ago. The profit margin increased from 5.22 per cent a year ago to 6.03 per cent in the reporting period.

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