2022-11-22 18:48, update2022-11-23 11:33
The company announced in its quarterly report that the net profit of the parent company of PGE Group amounted to 654 million PLN in the third quarter of 2022, compared to a profit of 561 million PLN in the previous year. PGE had previously estimated the consolidated net result at PLN 654 million.
EBITDA was PLN 1,926 million (down 9% YoY). Revenue was PLN 19.36 billion and was 77% higher year on year. y/o
“In the third quarter, PGE had EBITDA at a 9% lower level compared to the previous year, which better illustrates that there are no extraordinary earnings in the energy sector. In light of regulatory changes in the energy market, financing is The energy transition in the coming quarters will present an even greater challenge,” said Wojciech Dąbrowski, President of PGE, in the press release.
“A consistent energy transition can only be carried out while maintaining the financial stability of the group,” added Dąbrowski.
The recurring EBITDA of the PGE Group was about PLN 2.3 billion in the third quarter, which means an increase of 20%. y/o As mentioned, the only major event in the period was the change in the estimate of the provision for non-cash reclamation of about PLN 0.4 billion.
EBITDA of the Distribution segment in the third quarter was stable year-on-year and amounted to 668 million PLN. As reported, the impact of higher revenue from distribution services was limited by higher energy costs to cover the balance difference.
The reported EBITDA for the conventional energy segment was PLN 157 million, while a year ago the group reported a profit of PLN 754 million. Recurring EBITDA in this segment was PLN 576 million compared to PLN 685 million in the previous year. The lower result is mainly due to the rapidly increasing costs of hard coal and carbon dioxide emissions allowances.
In the fixed resources sector, reported EBITDA of PLN 561 million compared to a profit of PLN 214 million in the third quarter of 2021. Significantly higher electricity prices and increased demand for the operation of pumped-storage power plants had a positive impact. .
The trading segment’s EBITDA result in the third quarter increased by 61%. On an annual basis to PLN 509 million. Recurring EBITDA was PLN 486 million compared to PLN 314 million in the corresponding period of 2021. Increased revenue from provision of services within the Group.
In the heating sector, EBITDA losses amounted to PLN 10 million compared to a profit of PLN 152 million in the previous year. On a recurring level, the sector showed an EBITDA loss of 8 million PLN (vs 71 million PLN profit in the previous year), reflecting pressure from increasing fuel costs (natural gas and hard coal) and CO2 emissions allowances.
Net electricity production in the third quarter of 2022 at PGE Group’s generation units amounted to 16.0 TWh, up 9% over the previous year. A year less, the volume of distributed energy was 8.9 TWh (down 4% year-on-year). The volume of electricity sold to end users decreased by 10%. On an annual basis to 8.3 TWh. Heat Sales volume was 4.0 PJ which means a decrease of 1%. compared to the same period in 2021.
After three quarters of 2022, the PGE Group received PLN 3942 million from parent company net profit compared to PLN 3,251 million in the previous year, and PLN 8,318 million from EBITDA (13% increase year-on-year). and PLN 51.98 billion in revenue (58% year over year increase).
Net cash from operating activities after 9 months amounted to 8.53 billion PLN, which means an increase of 9%. y/o
The level of net economic financial debt (including future payments of allowances for carbon dioxide emissions) was about PLN 11.1 billion and increased by PLN 1.3 billion compared to the first half of 2022.
At the end of September, the bottom line net debt to EBITDA ratio was negative 0.18 times.
The group’s capital expenditures in the third quarter amounted to PLN 1.99 billion (+142% YoY), and after three quarters it was PLN 3.83 billion (+25% YoY).
PGE previously estimated that in the third quarter it had approximately PLN 1.926 billion in reported EBITDA, approximately PLN 2.328 billion in reported EBITDA and approximately PLN 654 million in net profit of the parent company.
In 2023, PGE assumes a decrease in recurring EBITDA in four segments, which is a stable outcome in the distribution (
In 2023, PGE assumes a year-over-year decline in repeat EBITDA in the conventional energy, trading, RES and heating sectors. It also expects a flat year-over-year result in the distribution area, PGE reported.
“The outlook for 2023 is demanding. We don’t expect EBITDA to be at similar levels in 2022. Rather, we expect EBITDA to be down in most segments. And in four segments, we have a downtrend, which is a result of the bid “Working on the emergency measures and the price cap that has been introduced,” Vice President Lechoslav Rojewski said at a press conference.
He added that the company is still analyzing the exact impact of the regulations that determine how the electricity price limit is calculated.
“We are not able to accurately estimate the impact of the measure on private solutions to protect clients in trading. We analyze the provisions and try to interpret them correctly. On the one hand, we do not know how the macro environment will develop. We analyze the level of costs, ”- said the vice president.
“It will certainly have a significant impact on the level of EBITDA in four sectors, and we expect that. How big it will be, we can’t say. Certainly, 2023 will be very challenging in conventional energy, in renewable energy, in trading” – Rojewski added.
When asked if the revenue from the sale of energy would cover production costs, he replied: “Unit costs for the 9 months of 2022 and in 2021 were at a level similar to that indicated in the law, they ranged between PLN 7 and PLN 8 per GJ. Three quarters Mining costs are fixed costs.
As he explained, unit costs depend to a large extent on assumptions made regarding the size and level of inflation, which translates into an increase in costs.
“We see a high risk that the price of PLN 7.8 / GJ, which appears in the law, will not be sufficient to cover the costs,” said the vice-president.
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