ENEA (ENA) Q3 2024 earnings summary

Executive summary

• Focus on sustainable development, energy transformation, and increasing efficiency across all segments, with a strategy emphasizing renewables, natural gas, and storage to stabilize the Polish energy system.

• Net profit for the nine months ended 30 September 2024 reached PLN 2,995.9 million, up from PLN 662.3 million year-over-year, with significant improvement in profitability across segments.

• Revenue from sales for the period was PLN 22,877.8 million, a decrease from PLN 32,881.0 million in the prior year, mainly due to lower electricity prices and volumes.

• Challenging market environment with volatile electricity and coal prices, and negative margins for coal-based generation.

• EBITDA for the period was PLN 4,327.4 million, compared to PLN 1,529.1 million in the same period last year, reflecting improved cost management and lower regulatory charges.

Financial highlights

• Q3 EBITDA margin reached a record 23%, with net profit positively impacted.

• Net profit for Q3 2024 was PLN 1,026.2 million, up from PLN 662.3 million in Q3 2023.

• Cash and cash equivalents at 30 September 2024 stood at PLN 7,386.3 million, up from PLN 3,026.1 million at year-end 2023.

• LTM EBITDA at PLN 8.2 billion, net debt remains very low.

• Sales revenue decreased year-over-year due to lower energy prices, but EBITDA increased.

Outlook and guidance

• Expect further decline in coal-based generation and CDS margins in 2025.

• CapEx in distribution and renewables to increase, with a five-year plan for network development.

• Targeting 2,000 MW of installed renewables by 2030.

• The Group will focus on securing diversified external financing for investments, especially in Distribution and Renewables.

• Ongoing analysis regarding the potential spin-off of coal assets as part of the National Energy Security Agency project.