INTER RAO Lietuva Group announces financial results for 1Q 2021 – Revenues increased by 110 per cent, net profit more than tripled to EUR 7.9 million y/y
- Revenues from sales in 1Q 2021 increased by 110.4 per cent y/y to EUR 122.3 million due to higher volume of electricity sold especially in the Latvian and Polish markets.
- Group’s gross profit on sales increased to EUR 9.5 million, versus EUR 4.9 million in 1Q 2020.
- Consolidated EBITDA increased to EUR 9.4 million from 3.7 million in 1Q 2020, while the EBITDA margin reached 7.7 per cent, compared to 6.3 per cent a year ago.
- Operating profit increased by 180.1 per cent y/y, to EUR 7.5 million, versus EUR 2.7 million in 1Q 2020.
- Group’s net profit amounted to EUR 7.9 million, versus EUR 2.4 million a year ago.
- The net profit margin increased from 4.2 per cent a year ago to 6.5 per cent in the reporting period.
- Electricity sales volume in Poland increased to 661 GWh, compared to 367 GWh in 1Q 2020.
– In the first quarter of 2021, INTER RAO Lietuva Group successfully managed all the challenges presented by dynamic changes in the electricity markets of its operation. The increase in sales was mainly driven by higher amount of electricity traded in Latvia and Poland and by a higher price of electricity in all markets y/y. Consolidated EBITDA increased to EUR 9.4 million with the EBITDA margin at 7.7 per cent. Significant contribution to the rising profit came from positive result of financial activities of the Group, mainly the change in the fair value of derivatives not designated as hedging instruments. Net profit in the 1st quarter of 2021 more than tripled and reached EUR 7.9 million. The Group earned EUR 0.4 per share – says Giedrius Balčiūnas, CEO at INTER RAO Lietuva.
Key figures of IRL Group
|Financial figures||1st quarter 2021||1st quarter 2020|
|Sales (EUR thousand)||122,332||58,153|
|Gross profit (EUR thousand)||9,494||4,910|
|Gross profit margin (%)||7.76%||8.44%|
|Operating profit (EUR thousand)||7,552||2,696|
|Operating profit margin (%)||6.17%||4.64%|
|EBITDA (EUR thousand)||9,422||3,654|
|EBITDA profit margin (%)||7.70%||6.28%|
|Net profit (EUR thousand)||7,915||2,415|
|Net profit margin (%)||6.47%||4.15%|
|Number of shares (thousand)||20,000||20,000|
|Earnings per share (EUR)||0.40||0.12|
Revenue from sales
The total consolidated sales revenue in January-March of 2021 was equal to EUR 122.3 million, 110.4 per cent more than in the first 3 months of 2020. The total revenue increase was caused by a higher amount of electricity traded with the strongest growth in the Polish and Latvian markets.
The market price of electricity was higher, compared to the same period in 2020, in all markets.
As a result – the Group’s gross profit increased by 93.4 per cent, compared to the same period a year ago, and the Group’s gross profit margin reached 7.76 per cent in the reporting period, compared to 8.44 per cent in the period January-March of 2020.
The Group’s operating profit increased by 180.1 per cent, compared to the same period a year ago and was equal to EUR 7.5 million.
In segment breakdown, the core electricity trade segment’s operating margin increased by 4.1 percentage points y/y, to 6.1% in 1Q 2021. The power generation segment witnessed a decrease of revenues and operating profit, as the Vydmantai wind power plant produced less electricity compared to the same period a year ago due to worse meteorological conditions: average wind speed in the 1st quarter of 2021 was 6.2 m/s compared to 7.87 m/s a year ago. Also, 2020 was the last year when the wind park had fixed feed-in tariff. As a result, the segment’s contribution to the Group’s operating profit decreased to just 2.3 per cent in 1Q 2021 from the exceptionally high 57.7 per cent a year before.
Operating results by segment
|Segment||Electricity trade||Power generation|
|(EUR thousand)||1Q 2021||1Q 2020||1Q 2021||1Q 2020|
The net result of financial activities of the Group in the first quarter of 2021 amounted to EUR 1.5 million. An increase over the net financial result during the same period a year ago came from the change in the fair value of derivatives not designated as hedging instruments.
The Group’s net profit in January-March of 2021 increased to EUR 7.9 million from EUR 2.4 million in the 1Q 2020. The profit margin also increased, from 4.2 per cent a year ago to 6.5 per cent in the reporting period.