Ignitis Group's sees significant increase in overseas revenue in first half of 2020

26 August 2020
Ignitis Group's sees significant increase in overseas revenue in first half of 2020

Ignitis Group, the international energy company, today announces its H1 2020 results in which it saw a 52 percent increase in overseas revenues from EUR 40.3 million to EUR 61.3 million, compared to the first half of 2019. This growth was driven mostly by gas exports to the Finnish market, where 1.6 TWh of natural gas was sold in the first half of this year, as well as revenue growth in the Latvian market. During this period, the Group's revenue from green energy generation also increased by 9.7 percent as a result of the efficient use of Kruonis PSHP and the higher amount of electricity generated by the wind farms of Ignitis Group.

Darius Maikštėnas, Chairman of the Board and CEO of Ignitis Group said:

"During the first half of 2020 we continued to transform the company in order to create a leading green energy company in the region. Although the first half of this year was tense for all companies due to coronavirus pandemic, today we can say that we have managed the situation, helped consumers facing financial difficulties and we have also made significant progress towards the long-term strategic goals of Ignitis Group.”

In the first half of 2020, when compared to same period of 2019, Ignitis Group’s revenues increased by 5.9 percent and reached EUR 590.9 million. The Group’s adjusted profit before the interest, taxes, depreciation, and amortisation (adjusted EBITDA) remained stable and decreased only 0.6 percent and totalled EUR 129.1 million. The result was mainly affected by the reduced volume of electricity products for business customers due to the impact of COVID-19.

Ignitis Group‘s adjusted net profit in the first half of 2020 increased by 3.6 percent, to EUR 54.6 million (EUR 52.7 million in the first half of 2019). It was mostly driven by lower corporate income and deferred income taxes.

The Group made significant progress in the development of green generation projects, which is a priority area of the Group's sustainable development. Ignitis gamyba installed the first 1MW solar power plant for prosumers and continues to develop this project. The total capacity of this solar power plant will reach 4MW and it will be the largest power plant of this type in the Baltic States. In addition, in the Pomeranian wind farm in Poland, almost half of the planned 29 wind turbines have already been installed. Ignitis Group also started to prepare for the installation of a 63 MW wind farm in Mažeikiai, Lithuania, where the works are planned to start in the third quarter of 2020.

During the first half of 2020, the Group's revenue from the green generation increased by 9.7 percent and reached EUR 3.5 million. Revenue growth was driven by increased sales of Kruonis PSHP and wind farms.

In the long-term corporate strategy, which was presented in June 2020, Ignitis Group targets 1.6-1.8 GW of installed green generation capacity by 2023 and 4 GW by 2030 while continuing to create value for shareholders.