The main performance indicators of Ignitis Gamyba have been steadily improving over the first 9 months of 2019, even despite the drought that hit Lithuania in spring and summer. Efficient use of the Kruonis Pumped Storage HPP (Kruonis PSHP) potential, positive results of the stocked fuel-oil sales and increased volume of the regulated services provided by Elektrenai Complex resulted in 13.3% higher adjusted EBITDA of the company – in Q3 of 2019, it reached EUR 42.9 million in comparison to EUR 37.9 million in Q3 of 2018.
The total revenue of Ignitis Gamyba amounted to EUR 115.6 million, 14.3% more if compared to January-September 2018, whereas the net profit grew by more than one-fourth and reached EUR 37.9 million. Other Company’s profitability indicators – operating profit margin, profit before tax margin, and net profit margin have been slightly higher if compared to the same period in 2018. This has been partly determined by the EUR 9.3 million remittance received from the Ministry of Finance in spring 2019, of which the company has announced previously.
“Although hydrological drought negatively affected the results generated by Kaunas A. Brazauskas’ HPP (Kaunas HPP) – due to insufficient inflow of the river Nemunas its production volumes decreased by one-fourth (24.7%) if compared to January-September of 2018, this has been compensated by successful activity of Kruonis PSHP – effective exploitation of a favourable difference between night-time and daily peak electricity prices resulted in 27.2% higher production volumes”, comments the CEO of Ignitis Gamyba Rimgaudas Kalvaitis.
In January-September 2019, 0.21 TWh of electricity has been generated in Kaunas A. Brazauskas HPP and 0.42 TWh in Kruonis PSHP. As in 2018, the production volumes in Elektrenai Complex remained limited. In total, 0.67 TWh of electricity was sold in the NordPool exchange, slightly less (6.9%) if compared to 0.72 TWh in January-September 2018.
The provision of ancillary services that are vital to the stability of the region’s electricity supply systems remained among the key activities of the company. As in 2018, this year Ignitis Gamyba ensured the secondary active power reserve, a service provided by two hydro units of Kruonis PSHP in the scope of 400 MW. The tertiary active power reserve in the scope of 260 MW has been ensured by the most effective unit of Elektrėnai Complex – the combined cycle unit (CCU). CCU has been constantly ready to produce electricity and contribute to the overall security of the energy system.
Taking constant care for the reliable and stable work of the power plants, the company continued intensive preparations for the projects of huge importance to the entire energy system. In May, it successfully participated in a test of Lithuanian electricity system restoration after a total failure and isolated work of a part of the system. Moreover, preparatory works aiming to evaluate the possible modernisation of the Kruonis PSHP has been continued – in September, a study of the pile field and infrastructure was completed, partially funded by the European Commission. It is expected that the technological alternatives’ study and socioeconomic study will be finished in the first half of 2020. At the beginning of October, Ignitis Gamyba successfully launched its first 1 MW community solar power plant project in the platform Ignitis Saules Parkai.
“It is important to note we managed to make substantial progress in implementing new projects. In January-September, preparatory works for the installation of the experimental solar power plant in Kruonis PSHP, installation of the energy storage device in Kaunas Algirdas Brazauskas’ HPP, and disassembly of the chimneys in Elektrėnai Complex have been actively carried out, including the initiation of the public procurement procedures necessary for further implementation of these projects. I strongly believe these large-scale innovations will soon become reality, allowing Ignitis Gamyba to push the boundaries of innovative solutions provided by the state-owned enterprises on both the national and regional levels”, says R. Kalvaitis.
KEY IGNITIS GAMYBA PERFORMANCE INDICATORS FOR JANUARY-SEPTEMBER 2019:
- Revenue from contracts with customers reached EUR 105.2 million, 4.6% more if compared to QI-III of 2018 (EUR 100.6 million). Revenue from contracts with customers has been growing mainly due to the positive results of the stocked fuel-oil sales. The total revenue of the company amounted to EUR 115.6 million in QI-III of 2019, a 14.3% increase from the same period last year (EUR 101.1 million).
- Due to the positive results of the stocked fuel-oil sales and better performance results of Kruonis PSHP, the adjusted EBITDA* reached EUR 42.9 million and was 13.4 % higher if compared to QI-III of 2018 (EUR 37.9 million).
- Net profit reached EUR 37.9 million, 26.2% more if compared to January-September last year (EUR 30.0 million).
- Expenses incurred by the company in QI-III of 2019 amounted to EUR 70.9 million – expenses for purchasing electricity and related services as well as purchasing fuel for electricity generation accounted for the most of it. Operating expenses amounted to EUR 14.9 million, 11.8% more if compared to QI-III of 2018. This occurred mainly due to the provision for the costs of dismantling projects in the Elektrėnai complex.
- The company invested EUR 0.5 million in non-current tangible and intangible assets. During the first 9 months of 2018, these investments amounted to EUR 3.8 million, the lion’s share of which has been assigned for the major repair works in Kruonis PSHP.
*The Company’s adjusted EBITDA is reported after the adjustments made by the management by eliminating the impact of one-off factors, also considering the change in revenue (and, consequently, EBITDA) of the Company's regulated services. These adjustments are made aiming to disclose the results of the Company’s operating activities after the elimination of the impact of non-typical, one-off factors or factors that are not directly related to the current reporting period. All adjustments made by the management are disclosed in the Company’s interim and annual reports.
Berta Jasiukenaite, Public relations project manager, +370 694 60771 berta.jasiukenaite@le.lt
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