Lithuania's Ignitis boosts 2022 earnings thanks to green biz

Lithuanian energy company AB Ignitis Grupe (VSE:IGN1L) saw its adjusted net profit surge 57.2% in 2022 thanks to the contribution of its Green Generation business.

The renewables-focused company said on Tuesday its adjusted net profit came in at EUR 256 million (USD 271.5m) while adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) exceeded the higher end of its guidance, coming at EUR 469.3 million. The growth was mostly fuelled by the commissioning of new capacity at the Green Generation segment and the improved performance of operating assets.

The Green Generation business posted an adjusted EBITDA of EUR 252.4 million, which more than doubled on a yearly basis and accounted for more than half of the group-level result.

Investments in the past year nearly doubled and reached an all-time high of EUR 521.8 million. Almost half of the total, or EUR 226.2 million, were earmarked for Green Generation projects.

During 2022, Ignitis progressed with its Vilnius combined heat and power (CHP) project in Lithuania and is getting ready to have it operational during the next heating season. It noted, however, that its commissioning has been pushed back to the third quarter of 2023 due to supply chain disruptions. The same effects, along with weather challenges, will also delay the commercial operations of the 50-MW Silesia I wind farm in Poland until the first quarter of 2024.

Since the start of 2022, Ignitis has expanded its Green Generation portfolio to 5.3 GW from 2.6 GW and added around 2.8 GW of projects to its pipeline. The green share in the group’s total electricity production rose by a third to 85.1%.

Looking ahead, the Lithuanian group expects adjusted EBITDA to be within the EUR 430 million–480 million range.

(EUR 1.0 = USD 1.061)

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