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INTER RAO Lietuva Group announces financial results for 9M 2020 – Lower profits with higher margins

  • Revenues from sales in 9M 2020 decreased by 41 per cent y/y to EUR 176.1 million due to lower amounts and prices of the electricity sold, especially in Lithuania and Latvia.
  • Despite the decrease in sales, Group’s gross profitability grew to 10.13 per cent compared to 7.07 per cent a year ago.
  • Group’s gross profit on sales reached EUR 17.8 million, versus EUR 21.1 million in 9M 2019.
  • Consolidated EBITDA amounted to EUR 14.1 million versus 18.8 million in 9M 2019, while the EBITDA margin increased to 8.0 per cent compared to 6.3 per cent a year ago.
  • Operating profit reached EUR 11.4 million, versus EUR 14.6 million in 9M 2019.
  • Group’s net profit amounted to EUR 9.9 million compared to EUR 14.2 million a year ago.
  • Electricity sales volume equalled 4 130 GWh, compared to 6 044 GWh in 9M 2019.
  • The amount of traded electricity in Poland increased to 1 336 GWh, versus 1 133 GWh a year ago.

“During the reporting period, the INTER RAO Lietuva Group managed to obtain better margins, but traded less electricity due to lower electricity prices, especially in Lithuania and Latvia. This came on the back of the lower electricity market price which decreased by 15.33 per cent y/y. The Group sold a larger amount of electricity in the Polish market and produced more electricity at the Vydmantai wind power plant thanks to better meteorological conditions. In the first 9 months of 2020, the INTER RAO Lietuva Group generated a gross profit on sales of EUR 17.8 million. EBITDA amounted to EUR 14.1 million and the net profit reached almost EUR 10 million with margins of 8.0 and 5.6 per cent respectively. The Group generated earnings of EUR 0.50 per share,” says Giedrius Balčiūnas, CEO at INTER RAO Lietuva.

Key figures of IRL Group

Financial figures 9 months 2020 9 months 2019
Sales (EUR thousand) 176,126 299,164
Gross profit (EUR thousand) 17,842 21,143
Gross profit margin (%) 10.13% 7.07%
Operating profit (EUR thousand) 11.369 14.612
Operating profit margin (%) 6.46% 4.88%
EBITDA (EUR thousand) 14,132 18,758
EBITDA profit margin (%) 8.02% 6.27%
Net profit (EUR thousand) 9,939 14,230
Net profit margin (%) 5.64% 4.76%
Number of shares (thousand) 20,000 20,000
Earnings per share (EUR) 0.50 0.71

Revenue from sales

Group’s sales revenue in January-September of 2020 was equal to EUR 176.1 million, a 41 per cent decrease compared to the first 9 months of 2019. The total revenue decreased due to lower volumes of electricity sold and lower prices of electricity in the NordPool market. The decrease in the amount of electricity traded was mainly influenced by the decrease in sales on the Lithuanian and Latvian markets.

Group’s cost of sales in January-September of 2020 amounted to EUR 158.3 million, 43 per cent less than during the first nine months of 2019. Similarly, the decrease was a result of lower volumes of electricity traded and lower electricity prices on NordPool market.

Earnings

Despite the decrease in sales, Group’s gross profitability grew to 10.1 per cent in  the period of January-September of 2020, compared to 7.1 per cent in January-September 2019.  Gross profit of the Group amounted to EUR 17.8 million (compared to EUR 21.1 million a year before).

Group’s operating profit over the same period amounted to EUR 11.4 million, while the operating profit margin increased to 6.5 per cent from 4.9 per cent a year ago.

In segment breakdown, the power generation segment increased its contribution to Group’s operating profit to 21.6 per cent from just 11.3 per cent a year ago thanks to favorable meteorological conditions at the Vydmantai wind power plant.

Operating results by segment

Segment Electricity trade Power generation
(EUR thousand) 9M 2020 9M 2019 9M 2020 9M 2019
Revenues 171,555 295,321 4,571 3,843
Operating profit 8,908 12,959 2,461 1,653
Operating margin 5.8% 4.4% 53.8% 43.0%

Group’s net profit in the period of January-September of 2020 decreased by 30.3 per cent to EUR 9.9 million, compared to the profit of EUR 14.2 million for the same period a year ago. The net profit margin increased from 4.8 per cent a year ago to 5.6 per cent in the reporting period.

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