Ignitis Group raises guidance following a strong first half performance
Ignitis Group, a renewables-focused integrated utility, reports strong financial results for the first half of 2024, upgrades its full-year guidance and proposes an interim dividend, while successfully bringing three Green Capacities projects into completion and demonstrating progress in strategy implementation.
AB “Ignitis grupė” (Ignitis Group) publishes its 6M 2024 results and announces that the Group’s adjusted EBITDA amounted to EUR 289.7 million (+14.3% YoY).
The growth was driven by better results in Green Capacities and Networks segments and the Green Capacities segment remains the largest contributor with a 46.4% share of total adjusted EBITDA. Customers & Solutions segment’s electricity B2C activities remained to be loss-making (EUR -18.5 million).
Investments amounted to EUR 422.3 million (+4.9% YoY) with 63.8% of them directed towards the Green Capacities segment, and 87.8% to Lithuania. The investments into Green Capacities reached EUR 269.6 million (+15.2% YoY), with the majority directed towards new onshore wind farms in Lithuania.
The Group’s leverage metrics remained strong, with FFO LTM/Net debt ratio remaining at a solid level of 32.0% (compared to 29.4% as of 31 December 2023). Also, S&P Global Ratings reaffirmed the Group’s ‘BBB+’ (stable outlook) credit rating.
“Ignitis Group is leading the energy transition in our home markets, driving significant change while staying true to our purpose to create a 100% green and secure energy ecosystem. We're actively expanding our Green Capacities, which are crucial for achieving a climate-neutral energy system, in line with our strategic goals,” says Darius Maikštėnas, CEO of Ignitis Group.
Business development
In 6M 2024, the Group increased its Green Capacities portfolio to 7.7 GW (from 7.1 GW) and installed capacity to 1.4 GW (from 1.3 GW). Secured capacity stood at 2.9 GW.
Ignitis Group reached a number of significant milestones in the expansion and development of our
Green Capacities portfolio, including the following:
– the Group, together with its partner CIP, won the second seabed site (Liivi 1) in the Estonian offshore wind tender and see the site as a natural extension of the Liivi 2 seabed site (secured in December 2023);
– Silesia WF I (50 MW) in Poland has reached COD;
– Vilnius CHP biomass unit has reached full COD (71 MWe, 170 MWth);
– Tauragė solar farm (22.1 MW) in Lithuania has reached COD;
– the first wind turbine has been erected in the largest wind farm under construction in the Baltics at Kelmė WF I & II (300 MW) in Lithuania;
– the Group has secured land for the development of hybrid projects (314 MW), i.e., is planning to develop wind farms near its Latvian solar projects;
– the Group has secured grid capacity for its first BESS projects (<260 MW) in Lithuania.
In Networks, Ignitis Group submitted the updated 10-year Investment Plan (2024–2033) to the regulator (NERC) for public consultation and coordination. The plan foresees a 40% increase in Investments to EUR 3.5 billion (from previously submitted Draft of EUR 2.5 billion over the period of 2022–2031). In addition, the total number of installed smart meters has exceeded 900 thousand.
In Customers & Solutions, the Group continues to expand the EV charging network in the Baltics and has now installed a total of 655 EV charging points (+279 since 31 December 2023).
Sustainability
The Group’s green share of generation amounted to 84.8% (-7.7 pp YoY) as a result of proportionally higher electricity generation in CCGT (Reserve Capacities).
We reduced our GHG emissions by 41.9% in Scope 2, while our Scope 1 and Scope 3 emissions increased by 19.2% and 5.9% respectively compared to 6M 2023. Total emissions amounted to 3.04 million t CO2-eq (+14.4% YoY). This rise was expected and is mainly attributable to a 237.6% increase in out of scope (biogenic) emissions from the Vilnius CHP biomass unit’s operations (the unit has reached full COD in May 2024).
The carbon intensity of our Scope 1 and 2 GHG emissions decreased to 256 g CO2-eq/kWh (-28.6% YoY), due to lower Scope 2 emissions and higher electricity generation from renewables.
No fatal accidents were recorded. Our employee TRIR was 1.00, contractor TRIR – 0.21, both well below the targeted threshold. Our eNPS remained high at 66.5%.
Shareholder returns and 2024 outlook
In line with the Group Dividend Policy, for 6M 2024 Ignitis Group proposes to distribute a dividend of EUR 0.663 per share, corresponding to EUR 48.0 million, which is subject to the decision of EGM to be held on 11 September 2024.
Following strong performance, Ignitis Group has increased its 2024 adjusted EBITDA guidance to EUR 450–480 million (from EUR 440–470 million). The investments guidance remains in the range of EUR 850–1,000 million.
Key financial indicators (APM1)
| EUR, millions | 6M 2024 | 6M 2023 | Change |
| Adjusted EBITDA | 289.7 | 253.5 | 14.3% |
| Green Capacities | 134.5 | 109.1 | 23.3% |
| Networks | 115.7 | 88.7 | 30.4% |
| Reserve Capacities | 25.2 | 32.2 | (21.7%) |
| Customers & Solutions | 11.8 | 21.7 | (45.6%) |
| Other activities and eliminations2 | 2.6 | 1.9 | 36.8% |
| Adjusted EBITDA Margin | 26.6% | 18.3% | 8.3 pp |
| EBITDA | 294.2 | 239.9 | 22.6% |
| EBITDA Margin | 26.9% | 17.5% | 9.4 pp |
| Adjusted Net Profit | 164.6 | 150.1 | 9.7% |
| Net Profit | 168.4 | 155.8 | 8.1% |
| Net Profit Margin | 15.4% | 11.4% | 4.0 pp |
| Investments | 422.3 | 402.6 | 4.9% |
| Green Capacities | 269.6 | 234.0 | 15.2% |
| Networks | 135.8 | 161.9 | (16.1%) |
| Reserve Capacities | 0.5 | 1.3 | (61.5%) |
| Customers & Solutions | 7.8 | 2.1 | 271.4% |
| Other activities and eliminations2 | 8.6 | 3.3 | 160.6% |
| FFO | 225.4 | 161.7 | 39.4% |
| FCF | (105.0) | 50.2 | n/a |
| Adjusted ROE LTM | 13.5% | 14.2% | (0.7 pp) |
| ROE LTM | 15.0% | 15.9% | (0.9 pp) |
| Adjusted ROCE LTM | 10.4% | 11.3% | (0.9 pp) |
| ROCE LTM | 11.6% | 13.0% | (1.4 pp) |
| Basic earnings per share | 2.33 | 2.15 | 8.4% |
30 Jun 2024 | 31 Dec 2023 | Change | |
| Net Debt | 1,411.0 | 1,317.5 | 7.1% |
| Net Working Capital | 113.7 | 175.2 | (35.1%) |
| Net Debt/Adjusted EBITDA LTM, times | 2.71 | 2.72 | (0.4%) |
| FFO LTM/Net Debt | 32.0% | 29.4% | 2.6 pp |
1 All, except ‘Net profit’, are Alternative Performance Measures (APMs). Definitions and formulas of the financial indicators are available on our website.
2 ‘Other activities and eliminations’ includes consolidation adjustments, related-party transactions and financial results of the parent company.
Earnings call
In relation to the announcement of the 6M 2024 results, an earnings call will be held on Wednesday, 14 August 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/Ignitis6M2024results/
It will be also 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 the unique pin or by selecting ‘Call me’ option and providing your phone details for the system to connect you in automatically as the earnings call starts.
All questions can be directed in advance to the Group’s investor relations team, after registering for the earnings call or live, during the call.
Presentation slides will be available prior to the call:
https://ignitisgrupe.lt/en/reports-and-presentations
The interim report, including the fact sheet (in Excel), will be available for download at:
