ENEA (ENA) Q2 2024 earnings summary

Executive summary

• Focus on sustainable development and transition to renewables, with updated strategy in final approval phase.

• Net profit for H1 2024 reached PLN 1,969.7m, up from a net loss of PLN 54.1m in H1 2023, driven by higher operating profit and lower taxes.

• Revenue from sales for H1 2024 was PLN 15,235.1m, a decrease from PLN 21,898.9m in H1 2023, reflecting lower electricity prices and volumes.

• EBITDA for H1 2024 was PLN 2,818.3m, up from PLN 785.8m in H1 2023, with significant improvement in the Trade and Distribution segments.

• Launch of Enea Eco line to drive energy efficiency and green energy offerings, starting in Q4 2024.

Financial highlights

• Operating profit for H1 2024 was PLN 2,744.0m, compared to PLN 723.6m in H1 2023.

• Cash flow from operating activities in H1 2024 was PLN 3,963.5m, up from PLN 1,163.6m in H1 2023.

• Net profit close to PLN 2 billion, reversing a net loss in the prior year.

• Extraordinary one-off income from hedging and forward contracts, totaling around PLN 900 million.

• Lower regulatory burden and absence of special tax (PLN 1.6 billion in 2023) improved results.

Outlook and guidance

• Updated group strategy to be presented soon, focusing on renewables and energy transformation.

• CapEx plan for 2024 exceeds PLN 4.6 billion, with majority allocated to distribution and renewables.

• The Group will continue to pursue the strategy of spinning off coal-based generation assets.

• Dividend policy under review, with clarity expected after strategic and regulatory decisions on coal assets.

• No contributions to the Price Difference Payment Fund are expected in H2 2024, improving cost structure.