A.Tumėno str. 4, block B, LT-01109 Vilnius Phone: +370 5 242 11 21

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.

Earnings

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
Revenues 121,764 55,906 568 2,247
Operating profit 7,380 1,132 172 1,556
Operating margin 6.1% 2.0% 30.3% 69.2%

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.

Share on social networks

Newsletter

By providing your personal data you confirm that you have read and understand the terms and conditions of personal data processing as published on the Company’s website (AB „INTER RAO Lietuva“ Data Privacy Policy).

By submitting your personal data, you confirm your consent to the processing of your personal data by the Company in order to provide you with services and to respond to your questions as well as to solve any problems as may arise.

You also confirm that the data submitted by you are accurate and correct and acknowledge that the Company bears no liability for the processing of any excess data you may have provided.

Please wait...

Thank you!