Ignitis' 2020 earnings beat forecast

Pomerania wind farm in Poland. Image by: Ignitis Group.

March 2 (Renewables Now) - Lithuanian renewables-focused utility Ignitis Group (VSE:IGN1L), or AB Ignitis Grupe, last week said that its adjusted EBITDA has increased by 12.2% on the year in 2020, reaching a higher level than initially projected.

Specifically, adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) rose to EUR 291.6 million (USD 350.7m) from EUR 259.9 million versus a 2020 forecast for EUR 265 million-269 million. The company guided for an even better earnings performance in 2021, expecting and adjusted EBITDA of EUR 300 million-310 million for an year-on-year growth of 3% to 6%.

The table below provides more information about the group’s financial performance in 2020.

Figures in EUR million, unless otherwise noted Q4 2020 Q4 2019 2020 2019
EBITDA 107.8 53.1 337.4 207.1
Adj EBITDA 92.3 72.2

291.6

259.9
Adj EBITDA margin 27.3% 22.9% 24.8% 22.6%
Net profit 60.9 15.2 169.3 59
Adj net profit 46.2 31.5 126.7 106

On Monday, Ignitis also said it expects the 94-MW Pomerania wind farm in Poland to start commercial operations this upcoming spring as its construction phase has already been completed. The 29 turbines at the site will begin testing in the nearest future, once the needed permits are secured.

Ignitis also estimates that the EUR-130-million asset will record an undiscounted adjusted EBITDA of some EUR 440 million over the 30 years of its operation and will generate about 300 GWh of electricity per year, receiving a guaranteed tariff which it won in a local auction.

(EUR 1.0 = USD 1.203)

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