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Interim report for the first quarter of 2021
Interim report for the first quarter of 2021: robust growth and full-year guidance reiteration supported by strategy delivery
AB “Ignitis grupė” (hereinafter – the Company) states that in Q1 2021 Adjusted EBITDA of the Company’s group of companies (hereinafter – Ignitis Group or the Group) recorded 18.6% growth compared to Q1 2020 and reached EUR 91.9 million.
Robust Adjusted EBITDA growth across most business segments (namely Networks, Green Generation and Flexible Generation) was driven largely by expansion of installed capacity in Green Generation, higher distributed volumes in the Networks business segment as a result of colder weather, as well as improved results of commercial activities of Flexible Generation (CCGT unit) impacted by positive spark spread including emission allowances’ price. The growth was partly offset by lower Customers &Solutions segment result mostly driven by worse results in electricity business mostly due to negative hedge results because of proxy hedging.
Shareholder return
In line with the Group Dividend Policy, a dividend of EUR 0.579 per share for the second half of 2020 has been paid out. We maintain the policy of minimum annual dividend growth of 3% going forward.
Strategy delivery
In Q1 2021 Investments decreased by 54.9% compared to Q1 2020, mainly due to lower investments in Vilnius CHP due to rescheduled investment timeline, Kaunas CHP as it was launched in August 2020, Pomerania wind farm as the construction was completed in March 2021 and the Networks segment due to cold winter and heavy snowfall. However, the lower comparable levels are not expected to affect the investment plans.
During the reporting period, the Group in line with the schedule increased its Green Generation installed capacity by 42 MW to 1,120 MW compared to Q1 2020, as a result of the launch of Kaunas CHP (24 MWe, 70 MWth) in August 2020 and Vilnius CHP waste-to-energy unit (19 MWe, 60 MWth) in March 2021. The Group has also completed construction works of Pomerania wind farm, which will add another 94 MW of installed capacity once it starts commercial operations (in Q2 2021) at full capacity. Finally, the expansion plan of Kruonis PSHP (900 MW) for an additional unit (110 MW) has been approved.
Furthermore, a milestone for Networks digitization to ensure the usage of grid as market facilitator has been achieved, as we selected smart meter infrastructure supplier (link).
Sustainability efforts and reporting
In Q1 2021, with the Annual Report 2020 the Group began to report comprehensively on ESG performance according to the GRI framework. The Group is currently preparing a GHG management plan and targets for submission to the Science-based Targets initiative to assure independently that our interim reduction targets are in line with the pathway towards net zero emissions by 2050.
Maintaining full-year guidance for 2021
Strong Q1 2021 financial results affirm the Group’s expectations and reiterate current full-year Adjusted EBITDA guidance of EUR 300–310 million (increase by 3–6% compared to 2020). The growth is expected to be driven by the Green Generation segment due to the launch of Vilnius CHP waste-to-energy unit and Pomerania Wind Farm, and full-year result of Kaunas CHP which was launched in 2020 as well as growing RAB value in Networks segment.
Key financial indicators for the Q1 2021
EUR, millions | Q1 2021 | Q1 2020 | Change |
EBITDA APM | 87.9 | 62.1 | 41.5% |
Adjusted EBITDA APM | 91.9 | 77.5 | 18.6% |
Adjusted EBITDA margin APM | 23.1% | 22.8% | 0.3 pp |
Net profit | 37.1 | 22.1 | 67.9% |
Adjusted net profit APM | 45.5 | 42.4 | 7.3% |
Investments APM | 28.2 | 62.4 | (54.8%) |
FCF APM | 28.5 | 16.0 | 78.1% |
ROE LTM APM | 11.5% | 4.8% | 6.7 pp |
Adjusted ROE LTM APM | 8.1% | 8.7% | (0.6 pp) |
ROCE LTM APM | 9.9% | 4.0% | 5.9 pp |
Adjusted ROCE LTM APM | 7.7% | 6.4% | 1.3 pp |
EUR, millions | 2021.03.31 | 2020.12.31 | Change |
Net debt/Adjusted EBITDA LTM APM | 1.89 | 2.06 | (8.3%) |
FFO LTM/Net debt APM | 58.1% | 52.1% | 6.0 pp |
*Formulas of the Group’s financial indicators are available on the Group’s website (link).
Earnings call
In relation to the announcement of the interim report, an earnings call will be held on 27 May 2021 at 11:00 Eastern European Summer Time (GMT+2).
To join the earnings call please register at: www.ignitisevents.lt
All questions can be directed in advance to Company’s IR, when registering for the earnings call or live during the call.
Presentation slides will be available before the presentation at:
https://ignitisgrupe.lt/en/reports-and-presentations
The interim report is available for download at:
https://ignitisgrupe.lt/en/reports-and-presentations
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Interim Report for the first quarter of 2021 is attached to this notice, the Company also published it and previous reports on its website at: https://ignitisgrupe.lt/en/reports-and-presentations
For additional information please contact
Communication
Artūras Ketlerius
+370 620 76076
Investor relations
Ainė Riffel-Grinkevičienė
+370 643 14925
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