Lithuania's Ignitis happy with H1 2021 results, growth forecast intact

Pomerania wind farm. Image by: Ignitis Group.

August 31 (Renewables Now) - Lithuanian energy company Ignitis Grupe AB (VSE:IGN1L) reported on Tuesday adjusted EBITDA of EUR 168.4 million (USD 199.4m) for the first half of 2021, achieving a 30.5% year-on-year growth mainly on the back of green generation.

The group benefited from the installed capacity of the Kaunas combined heat and power (CHP) cogeneration plant, which was launched last year, and the start-up of the Vilnius CHP waste-to-energy unit in March 2021. The new capacity was complemented by better results from the Kaunas hydropower plant due to higher electricity prices, Ignitis said.

More financial details follow in the table below:

In EUR millions: H1 2021 H1 2020
EBITDA 169.9 149.7
Adjusted EBITDA 168.4 129.0
Adjusted EBITDA margin 22.9% 22.7%
Net profit 48.8 71.9
Adjusted net profit 77.7 54.6
Investments 76.9 187.3

In light of solid financial results, Ignitis reiterated its adjusted EBITDA forecast of EUR 300 million-310 million for 2021, which would represent growth of 3%-6% compared to the results achieved in 2020.

Ignitis raised the green generation installed capacity by 43 MW to 1,120 MW since the first half of 2020 -- 24 electric megawatts (MWe) come from the Kaunas CHP, while the Vilnius plant’s waste-to-energy unit generates 19 MWe.

The group’s efforts to reach commercial operation date (COD) for the 94-MW Pomerania wind farm in Poland were delayed for the third quarter of 2021, mainly due to the COVID-19 pandemic and other “typical project development risks”, Ignitis said.

All of Pomerania's turbines are built and running, but the COD will follow once the wind farm secures its generation licence.

Also, projects in its Polish solar portfolio I, of up to 170 MW, failed to secure contract-for-difference tariff in the last two auctions in Poland. Ignitis said that, as a result, it had initiated agreement negotiations with the developer.

Other green generation projects are fully on track, the group added.

(EUR 1.0 = USD 1.184)

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