The results of Ignitis Group in Q1 2020: adjusted EBITDA growth was driven by investments in distribution network; group’s revenue from foreign countries increased by 39 percent

Adjusted profit before the interest, taxes, depreciation, and amortisation (adjusted EBITDA) of an international energy company Ignitis Group during the first quarter of 2020, compared to Q1 2019, increased 8.8 percent and totaled EUR 85.1 million. The result was mainly affected by continued Investments in distribution networks and efficient use of Kruonis PSHP.

“During the first quarter of this year, despite challenges related to the coronavirus pandemic, we continued the expansion abroad and actively invested in innovative energy-smart solutions. On the 1st of January, Ignitis became one of the first players in the Finnish gas market, that was opened to competition and over the course of two weeks it became one of the largest Finland's alternative gas supplier. We also secured financing of the development of Pomerania Wind Farm in Poland, and the group's subsidiary Ignitis Gamyba started the installation of the largest 3 MW solar power plant in the Baltic States,” said Darius Maikštėnas, Chairman of the Board and CEO of Ignitis Group.

Group‘s adjusted net profit increased to EUR 48.8 million (EUR 39.2 million in the Q1 2019). It was mostly driven by growth in Adjusted EBITDA. Adjusted return on equity (12 months) was 8.7 percent.

During 1st quarter of 2020 revenue growth decreased by 5.2 percent, and totalled EUR 325.7 million. The main reasons causing revenue changes were lower prices of gas sold to business customers, lower gas supply tariffs for household customers and EUR 9.3 million compensation which was received in the first quarter of 2019.

The Group’s Revenue from foreign countries (Latvia, Estonia, Poland and Finland) increased by 39 percent and reached EUR 38.1 million (EUR 27.4 million in the Q1 2019).

Key indicators of the 1st quarter 2020 of Ignitis Group:

• the Group’s revenues decreased by 5.2 percent, and  totalled EUR 325.7 million (during 1st quarter of 2019– EUR 343.5 million);

• operating costs decreased by 7 percent and reached EUR 295.1 million (during 1st quarter of 2019– EUR 317.5 million);

• the Group’s adjusted EBITDA grew by 8.8 percent, up to EUR 85.1 million (during 1st quarter of 2019 – EUR 78.2 million);

• adjusted return on equity (ROE) reached 8.7 percent (during 1st quarter of 2019 – 8 percent);

• the Group’s net profit was EUR 48.8 million, 24.6 percent bigger (during 1st quarter of 2019 – EUR 39.2 million);

• investments decreased by 29.7 percent, to EUR 62.3 million (during 1st quarter of 2019 – EUR 88.6 million). The majority of investments was allocated for distribution network, the development of combined heat and power plants in Vilnius and Kaunas and the development of Pomerania wind farm.