INTER RAO Lietuva Group announces financial results for 1Q 2020 – The financial data exceptionally close to the results of the 1Q 2018
- Revenues from sales in 1Q 2020 decreased by 45.7 per cent y/y to EUR 58.2 million due to lower volume of electricity sold and lower prices on the NordPool market.
- Group’s gross profit on sales decreased to EUR 4.9 million, versus EUR 8.0 million in 1Q 2019.
- Consolidated EBITDA amounted to EUR 3.7 million versus 7.8 million in 1Q 2019, while the EBITDA margin was 6.3 per cent, compared to 7.3 per cent a year ago.
- Operating profit reached EUR 2.7 million, versus EUR 6.0 million in 1Q 2019.
- Group’s net profit amounted to EUR 2.4 million, versus to EUR 6.4 million a year ago.
- The net profit margin decreased from 6.0 per cent a year ago to 4.2 per cent in the reporting period.
- Electricity sales volume decreased to 1 317 GWh, compared to 2 134 GWh in 1Q 2019.
– The first quarter of 2020 in the electricity markets was marked by much lower electricity prices than expected, on average EUR 27.53 per MWh, compared to EUR 47.82 per MWh in the first three months of 2019. Despite this, INTER RAO Lietuva Group, with a significant contribution from tits Polish operations’ and wind park’s results, managed to remain on the profitability path and to achieve the consolidated results exceptionally close to those in 1st quarter of 2018. The net profit in the 1st quarter of 2020 was EUR 2.4 million. Consolidated EBITDA amounted to EUR 3.7 million with the EBITDA margin at 6.3 per cent. The Group earned EUR 0.12 per share – says Giedrius Balčiūnas, CEO at INTER RAO Lietuva.
Key figures of IRL Group
|Financial figures||1st quarter 2020||1st quarter 2019||1st quarter 2018|
|Sales (EUR thousand)||58,153||107,072||59,457|
|Gross profit (EUR thousand)||4,910||7,958||5,275|
|Gross profit margin (%)||8.44%||7.432%||8.87%|
|Operating profit (EUR thousand)||2,696||5,978||3,440|
|Operating profit margin (%)||4.64%||5.58%||5.79%|
|EBITDA (EUR thousand)||3,654||7,821||4,051|
|EBITDA profit margin (%)||6.28%||7.30%||6.81%|
|Net profit (EUR thousand)||2,415||6,416||2,564|
|Net profit margin (%)||4.15%||5.99%||4.31%|
|Number of shares (thousand)||20,000||20,000||20,000|
|Earnings per share (EUR)||0.12||0.32||0.13|
Revenue from sales
The total consolidated sales revenue in January-March of 2020 was equal to EUR 58.2 million, 45.7 per cent less than in the first 3 months of 2019. The total revenue decrease was caused by lower amount of electricity traded in most of the markets, with the exception of the Polish market where a growth in volumes was reported.
The market price of electricity purchased was lower, compared to the same period in 2019, in all the markets, and the price for consumers decreased as well, compared to the same period a year ago.
As a result – the Group’s gross profit decreased by 38.3 per cent, compared to the same period a year ago, but the Group’s gross profit margin was equal to 8.44 per cent in the reporting period, compared to 7.43 per cent in the period January-March of 2019.
Significant contribution to the consolidated results came from Polish operations’ and wind park’s results. During the reporting period Vydmantai wind park, UAB produced a higher amount of electricity compared to the same period a year ago, due to better meteorological conditions: average wind speed in 1st quarter of 2020 was 7.87 m/s, compared to 7.26 m/s a year ago.
Group’s operating profit decreased by 54.9 per cent, compared to the same period a year ago and was equal to EUR 2.7 million.
In segment breakdown, the core electricity trade segment’s operating margin decreased by 2.7 percentage points y/y, to 2.0% in 1Q 2020. 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 the Group’s operating profit increased to the exceptionally high 57.7 per cent in 1Q 2020 from just 16.3 per cent a year before.
Operating results by segment
|Segment||Electricity trade||Power generation|
|(EUR thousand)||1Q 2020||1Q 2019||1Q 2020||1Q 2019|
The Group’s net profit in January-March of 2020 decreased to EUR 2.4 million from a high EUR 6.4 million in the 1Q 2019 and was close to the result of the 1Q 2018. The profit margin also decreased, from 6.0 per cent a year ago to 4.2 per cent in the reporting period.