Lithuanian energy company Ignitis Grupe AB (VSE:IGN1L), or AB Ignitis Grupe, on Tuesday reported a 33.1% year-on-year rise in adjusted net profit for the first three quarters of 2021 as adjusted EBITDA gained 50.7% mainly thanks to increased green generation.
The renewables-focused company enjoyed improved adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) in all of its segments. The higher results of its Green Generation business was helped by the start-up of the Kaunas combined heat and power (CHP) cogeneration plant and the Vilnius CHP waste-to-energy unit. Meanwhile, the results were further lifted by the operation of the Kaunas hydropower plant due to higher electricity prices.
Ignitis closed the first nine months of 2021 with an adjusted net profit of EUR 83.7 million (USD 94.9m) and adjusted EBITDA of EUR 214.5 million. More details about its financial performance are available in the table.
|Figures in EUR million
|Adjusted EBITDA margin
|Adjusted net profit
During the reporting period, the Lithuanian company added 19 MW of green energy capacity and expanded its fleet to 1,120 MW. It is currently commissioning the 94-MW Pomerania wind farm in Poland that was delayed due to the COVID-19 pandemic and other development project risks. The wind farm’s construction was completed in March, with its output being sold on a merchant basis, with the commercial operation date (COD) to be reached once a generation licence has been issued.
The company’s pipeline expanded with a further 160 MW of green generation projects in the third quarter.
Investments in January-September amounted to EUR 131 million, which is 51.6% less than in the year-ago period. The decrease was due to lower investments in the Vilnius and Kaunas CHPs.
In light of solid financial results, Ignitis confirmed its adjusted EBITDA forecast of EUR 300 million-310 million for 2021. For Green Generation, the result is projected to top EUR 50.7 million.
(EUR 1.0 = USD 1.134)
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