Ignitis Group expands its green capacities to accelerate competitive electricity prices in the Baltics

Ignitis Group, a renewables-focused integrated utility, reported strong performance for the first nine months of 2024, underscoring its commitment to green energy growth and significant investments in renewable energy across the Baltic region and Poland.

AB “Ignitis grupė” (Ignitis Group) has directed its investments toward renewable energy projects and networks, strengthening its role as a key driver of the region's competitive and sustainable electricity prices. 

The Group's adjusted EBITDA reached 397 million euros, marking a 15% year-on-year increase. This growth was driven by better results in the Green Capacities and Networks segments. The Green Capacities segment remains the largest contributor, accounting for 45.6% of total adjusted EBITDA.

Investments for the period reached 583.7 million euros, with 57.4% allocated to the Green Capacities segment, mainly onshore wind projects. Overall, 85.4% of all investments went to projects in Lithuania.

In the first nine months of 2024, Ignitis Group expanded its Green Capacities portfolio to 7.7 GW, up from 7.1 GW, and increased installed capacity to 1.4 GW from 1.3 GW. The secured capacity reached a total of 3.1 GW, up from 2.9 GW.

The Group achieved key milestones across its Green Capacities portfolio. 

Silesia wind farm I in Poland (50 MW), Vilnius combined heat and power plant (71 MWe, 170 MWth) and Tauragė solar farm in Lithuania (22.1 MW) all reached their commercial operation dates (CODs), marking key project completions. 

Additionally, Kelmė wind farm in Lithuania (300 MW) and Silesia wind farm II in Poland (137 MW) began supplying power to the grid.

In Latvia, Ignitis Group made a final investment decision on Tume solar farm (174 MW) and launched the contruction its third solar project in this country.

In Estonia, Ignitis Group, in partnership with Copenhagen Infrastructure Partners, secured the Liivi 1 seabed site in an offshore wind tender, complementing the existing Liivi 2 site. Additionally, the company took decisions to participate in Lithuania’s second 700 MW offshore wind tender and seek partners. The tender is set to begin on 18 November 2024, and the National Energy Regulatory Council should announce the winner by the end of April 2025.

In Lithuania, Ignitis Group has secured grid connection capacity for battery energy storage projects totalling up to 290 MW. Lastly, the company signed a four-year power purchase agreement with Akmenės Cementas for electricity from Mažeikiai wind farm (63 MW).

Darius Maikštėnas, CEO of Ignitis Group, commented on the company’s progress: “Our performance and investments demonstrate our firm dedication to advancing renewable energy across the Baltics. Each new project in the Group’s portfolio brings our market closer to energy independence and competitive electricity prices, similar to those in Scandinavia.”

The company has also made progress in the Networks segment. Committed to delivering reliable electricity distribution, Ignitis Group updated its 10-year investment plan, foreseeing a 40% increase in investments in the Networks segment, totalling 3.5 billion euros over the 2024–2033 period. 

Moreover, after the reporting period, Ignitis Group reached the milestone of 1 million smart meters installed, completing over 80% of the rollout.

The Customers & Solutions segment has significantly expanded its Baltic electric vehicle charging network, adding 491 new charging points since the end of 2023 to a total of 867.

Ignitis Group maintained a strong financial position, with its cash-flow-to-debt ratio improving to 34.2%, up from 29.4% at the end of last year. S&P Global Ratings has reaffirmed the company’s ‘BBB+’ credit rating with a stable outlook.

In line with its Dividend Policy, Ignitis Group distributed a dividend of 0.663 euros per share, totalling 48 million euros for the first half of 2024.

Due to strong performance of the Green Capacities segment in the first nine months of 2024, Ignitis Group increases its full-year adjusted EBITDA guidance to 480–500 million euros (previously 450–480 million euros) and updates investments guidance to 750–900 million euros (previously 850–1000 million euros). 

Earnings call

In relation to the announcement of the 9M 2024 results, an earnings call will be held on Wednesday, 13 November 2024, at 1:00 pm Vilnius / 11:00 am London time. 

To join the earnings call, please register at: 
https://edge.media-server.com/mmc/go/Ignitis9M2024results 

It will also be possible to join the earnings call by phone. To access the dial-in details, please register here. After completing the registration, you will receive dial-in details on screen and via email. You will be able to dial in using the provided numbers and a unique pin or by selecting ‘Call me’ option and providing your phone details for the system to connect you automatically as the earnings call starts.

After registering for the earnings call, all questions can be directed in advance to the Group’s investor relations team or live during the call. 

Presentation slides will be available before the call: 
https://ignitisgrupe.lt/en/reports-and-presentations 

The interim report, including the fact sheet (in Excel), will be available for download at: 
https://ignitisgrupe.lt/en/reports-and-presentations