In Q1 2021 revenue and profit growth of Ignitis Group was ensured by Green Generation and improved results of Flexible Generation

• Adjusted EBITDA of Ignitis Group in Q1 2021 reached EUR 91.9 million and recorded 18.6% growth compared to Q1 2020.
• Robust Adjusted EBITDA growth was driven largely by expansion of installed capacity in Green Generation, improved results of commercial activities of Flexible Generation as well as higher distributed volumes in the Networks business segment as a result of colder weather.
• Strong financial results are in line with the outlook and forecast of previously adjusted EBITDA for 2021, which should reach EUR 300–310 million.

Adjusted EBITDA of the international energy company Ignitis Group in Q1 2021 was 18.6% higher compared to Q1 2020 and reached EUR 91.9 million. The robust indicator growth was largely driven by expansion of installed capacity in Green Generation, improved results of commercial activities of Flexible Generation as well as higher distributed volumes in the Networks business segment.

Ignitis Group Green Generation segment growth in the first quarter of 2021 was a result of the launch of Vilnius CHP waste-to-energy unit. At the same time, improved results of commercial activities of Flexible Generation were impacted by a positive spark spread due to a very cold winter and lower wind generation, including emission allowances’ price. Observed growth in the Networks segment was in large part higher distributed volumes as a result of colder weather.

“Strong Q1 2021 financial results affirm the Adjusted EBITDA expectations for the current year, which were announced in Ignitis Group Annual Report 2020. We progressed significantly during the first three months of the year. We implemented financial and strategic objectives of the Group in various business segments.

Kaunas and Vilnius CHPs began operations successfully, we completed the construction works of Pomerania Wind Farm, one of the largest wind farms in Poland, and have started generating electricity at the end of May. Also, the decision was approved to expand the largest pumped storage hydro-plant in the region – Kruonis PSHP – by electing to install an additional 110 MW unit. Green Generation portfolio development goals and sustainable commercial operations development are not the only segment going according to plan. We have also achieved significant results in ensuring Network segment growth – we have selected a supplier responsible for implementing the smart meters’ infrastructure”, said Darius Maikštėnas, CEO and Chair of the Management Board at Ignitis Group.

Strategy delivery

In Q1 2021 Investments decreased by 54.9% compared to Q1 2020, mainly due to lower investments in Vilnius CHP due to launched waste-to-energy unit, 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 of Networks and Green Generation segments.

During the reporting period, Ignitis Group in line with the schedule increased its Green Generation installed capacity by 42 MW to 1,120 MW compared to Q1 2020. It was driven by 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. Ignitis 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 of 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 the smart meter infrastructure supplier.

Sustainability efforts and reporting

In Q1 2021, with the Annual Report 2020 Ignitis 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 for 2021 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 Q1 2021*

*Formulas of the Group’s financial indicators are available on the Group’s website (link).

Earnings call

An earnings call on Ignitis Group’s Q1 2021 results 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 submitted in advance to the company’s investor relations representatives 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