Polenergia (PEP) Q2 2024 earnings summary

Executive summary

• Achieved strong growth in H1 2024, with significant increases in revenue, EBITDA, and net profit, driven by expanded renewable energy capacity and operational improvements.

• Net profit for the six months ended 30 June 2024 was PLN 116,103 thousand, slightly down from PLN 116,514 thousand in the same period last year.

• Commissioned the Strzelino photovoltaic farm (45 MW), the largest in the Group's history, and continued dynamic development in onshore wind and PV projects.

• Launched a green bond program of up to PLN 1 billion to finance further green projects.

• Secured a support price for Baltic 2 and 3 offshore wind projects, with all key permits obtained and first power expected in 2027.

Financial highlights

• H1 2024 revenue (excluding trading) rose 24% year-over-year to PLN 616.0 million.

• EBITDA increased 28% year-over-year to PLN 394.6 million, with onshore wind, distribution, and PV segments as main contributors.

• Adjusted net profit grew 31% year-over-year to PLN 222.4 million.

• Gross sales profit for H1 2024 was PLN 10,600 thousand, compared to PLN 13,306 thousand in H1 2023.

• Cash and equivalents at period end were PLN 502,621 thousand, down from PLN 949,238 thousand at the start of the year.

Outlook and guidance

• 71% of 2025 target electricity production already price-secured through contracts for difference, PPAs, and direct sales.

• Offshore wind projects Bałtyk 2 & 3 on track, with first power generation expected in 2027 and strong interest from lenders.

• The company is expanding its review of strategic options, covering new projects and business segments, with outcomes and timing uncertain.

• No dividends were paid or planned for 2024.