In 2020 Ignitis Group financial results were improved by an increase in commercial production volume
- Ignitis Group’s adjusted EBITDA reached EUR 291.6m and was approximately 10% higher than estimated – it was affected by measurable growth in all business segments
- In 2020 the Group continued focused and sustainable growth in the Green Generation segment. The Green Generation capacity installed increased last year by 24 MW and reached 1,101 MW
- For the second half of 2020 the proposed pay-out of dividends to the Ignitis Group’s shareholders is EUR 43m (EUR 0.58 per share)
- 2021 adjusted EBITDA of the Group is estimated to reach EUR 300–310m and increase by 3–6% compared to 2020
2020 adjusted EBITDA of Ignitis Group, an international energy company, reached EUR 291.6m and was around 10% higher than estimated (EUR 265–269m). Compared to 2019 adjusted EBITDA, which reached EUR 259.9m, last year result grew by a solid 12.2% – it was driven by increase in results across all Group segments.
The main reasons of the positive change are continuous investments into network resilience, connection of new customers and capacity upgrades, consistent increase of Green Generation portfolio as well as effectively managed diversified assets portfolio, which allows to benefit from extraordinary market conditions. The latter reason resulted in effective utilisation of fluctuations in electricity and gas market prices, when Kruonis PSHP and combined cycle gas turbine of Elektrėnai Complex were utilised exceptionally efficiently which resulted in higher than expected results for 2020.
“The ripples of COVID-19 pandemic and the quarantine restrictions throughout 2020 affected every one of us. However, even in this difficult situation, we continued to create energy smart world, which is greener, safer and open to innovations. Significantly improved commercial production indicators and an increase in green generation volume assisted in exceeding the financial outlook. Also, local and international capital raised last year during the largest IPO in the Baltic states will allow Ignitis Group to ensure further development in Lithuania and abroad.
We proved once again that Ignitis Group is ready to lead the energy sector in the Baltic region by transitioning to green generation and creating long-term sustainable value to the shareholders”, said the Ignitis Group CEO and Chair of the Management Board Darius Maikštėnas.
Growth in all business segments
Increase of 17% in adjusted EBITDA of Green Generation segment was influenced by better results of Kruonis PSHP and Kaunas CHP, which commenced commercial operations. Increase in Networks segment (+10%) was mainly driven by continuous investments into network resilience as well as connection of new customers and capacity upgrades. Flexible Generation segment grew due to successful commercial operations of Elektrėnai Complex. The increase in Customers and Solutions segment was mainly caused by expansion into Finnish natural gas market.
Green generation development
In 2020 the Group continued focused and sustainable growth in the Green Generation segment. The Green Generation capacity installed increased last year by 24 MW and reached 1,101 MW. This was driven by commenced commercial operations of Kaunas CHP, which also contributed to the increase in green energy generation volume (+20.3%) up to 1.25 TWh. Higher generation volume of Kruonis PSHP also had positive impact on it.
Shareholder return
Group management propose EUR 43m dividend pay-out (EUR 0.58 per share) to shareholders for the second half of 2020 which complies with the provisions of the Group Dividend Policy approved in autumn of 2020. The total planned dividend amount to be allocated for the 2020 financial year is EUR 85m. It must be noted that for the first half of 2020 the Group paid EUR 42m to the Principal Shareholder prior to the IPO of Ignitis Group.
Outlook for 2021
2021 adjusted EBITDA of the Group is estimated to reach EUR 300–310m and 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.
Key financial indicators for the Q4 and 12 months of 2020*
|
m EUR |
2020 2019 Q4 |
2019 2019 Q4 |
% |
2020 |
2019 |
% |
|
EBITDA APM |
107.8 |
53.1 |
103.0% |
337.4 |
207.1 |
62.9% |
|
Adjusted EBITDA APM |
92.3 |
72.2 |
27.8% |
291.6 |
259.9 |
12.2% |
|
Adjusted EBITDA margin APM |
27.3% |
22.9% |
3.6 pp |
24.8% |
22.6% |
2.2 pp |
|
Net profit |
60.9 |
15.2 |
n/a |
169.3 |
59.0 |
186.9% |
|
Adjusted net profit APM |
46.2 |
31.5 |
46.7% |
126.7 |
106.0 |
19.5% |
|
Investments APM |
76.0 |
123.7 |
(38.6%) |
346.8 |
453.2 |
(23.5%) |
|
FCF APM |
39.1 |
(34.1) |
n/a |
48.0 |
(189.8) |
n/a |
|
ROE APM |
|
|
|
10.6% |
4.4% |
6.2 pp |
|
Adjusted ROE APM |
|
|
|
7.9% |
8.0% |
(0.1 pp) |
|
ROCE APM |
|
|
|
9.0% |
3.8% |
5.3 pp |
|
Adjusted ROCE APM |
|
|
|
7.1% |
6.2% |
0.9 pp |
|
Net debt/Adjusted EBITDA APM |
|
|
|
2.06 |
3.72 |
(44.6%) |
|
FFO/Net debt APM |
|
|
|
52.1% |
19.6% |
32.5 pp |
*Formulas of Group’s financial indicators can be found on the Group’s website (link).
Results and 2021–2024 Strategic Plan presentation
Online presentation of 2020 Ignitis Group results and updated 2021–2024 Strategic Plan to investors and analysts will commence on 2 March 2021 at 11:00 Eastern European Time (GMT+2).
You can register to join the presentation here: www.ignitisevents.lt
You can submit questions in advance to the investor relations representatives using the contacts provided below, when registering to the online presentation or ask them live during the presentation.
Presentation slides will be available before the presentation at:
https://ignitisgrupe.lt/en/reports-and-presentations
You can download the annual report and strategic plan via link provided below:
