Ignitis Grupe

Earnings Release • Sep 30, 2021

National Storage Mechanism | Additional information

Preliminary financial data of Ignitis Group for 8 months of 2021

Preliminary financial data of Ignitis Group (hereinafter – the Group) for 8 months of 2021:

	August
	2021	2020	Change
Revenue	EUR 115.4 million	EUR 95.3 million	21.1%
Adjusted EBITDA1	EUR 21.1 million	EUR 22.9 million	(7.9%)
	January – August
	2021	2020	Change
Revenue	EUR 988.2 million	EUR 775.3 million	27.5%
Adjusted EBITDA1	EUR 212.3 million	EUR 172.3 million	23.2%

In January – August 2021, the Group generated revenue of EUR 988.2 million, which is 27.5% more compared to a respective period of 2020 (EUR 775.3 million). The results were driven by higher electricity sales to business customers in the Customers & Solutions business segment as a result of increase in electricity market prices and higher consumption compared to the same period in 2020. In Networks segment higher energy consumption resulted to increase of distributed volumes which led to increase of revenue. Also, Group’s revenue increased in Flexible Generation segment as a result of the CCGT unit’s commercial activities caused by higher clean spark spread. Additionally, in Green Generation segment increase of revenue was caused by the start of operations of Kaunas and Vilnius CHP’s in August 2020 and March 2021, respectively.

The adjusted EBITDA in January – August 2021 was equal to EUR 212.3 million, i.e. 23.2% more compared to a respective period of 2020 (EUR 172.3 million). Adjusted EBITDA results grew in all of Group’s operating segments:

• Green Generation segment result grew due to start of operations of Kaunas and Vilnius CHP’s as well as improved result of Kaunas HPP mostly due to higher electricity market price and higher produced volumes as a result of higher water level in Nemunas river;
• Customers & Solutions grew due to temporary positive effect on gas performance as a result of gas inventory revaluation due to increasing gas prices in the market (EUR 28.5 million in January – August 2021) which is likely to switch direction if gas prices normalize;
• Flexible Generation segment grew due to higher commercial activity result from CCGT unit due to higher clean spark spread;
• Networks segment result grew mostly due to higher distributed volumes as a result of overall higher energy consumption compared to respective period of 2020. Higher volumes effect amounted to EUR 11.9 million in January – August 2021, this effect will level off over the course of the year as annual ROI and compensated D&A is fixed for the year, but allocated between the months based on distributed volumes.

The adjusted EBITDA in August 2021 was equal to EUR 21.1 million, i.e. 7.9% less compared to a respective period of 2020 (EUR 22.9 million). The Adjusted EBITDA decrease was mainly caused by worsen results from the CCGT in Flexible Generation segment due to lower generation volumes and lower clean spark spread for commercial activity and inefficient electricity proxy hedging results in the Customers & Solutions business segment.

1 The Group’s preliminary (2021) and actual (2020) result of adjusted EBITDA is presented after the adjustments made by the management by eliminating the impact of one-off factors. These adjustments are intended to disclose the results of the Group’s operating activity without taking into consideration atypical, one-off factors or factors that have no direct relation with the current period of operations. All adjustments made by the management are disclosed in the Group’s interim and annual reports which are available at Group’s website (link).

For more information please contact:

Artūras Ketlerius

Head of Public Relations at Ignitis Group

arturas.ketlerius@ignitis.lt

+370 620 76076