Polenergia (PEP) Q3 2024 earnings summary

Executive summary

• Achieved record financial results for the first nine months of 2024, with significant growth in EBITDA and adjusted net profit year-over-year, driven by strong onshore wind and PV segments despite lower trading and sales results.

• Major progress in offshore wind, hydrogen, and PV projects, with significant contracts, permits, and financing secured.

• Successful first Green Bond issue, raising PLN 750 million to finance strategic offshore wind projects.

• Strategic projects, including Bałtyk 2 and Bałtyk 3 offshore wind farms, progressing on schedule with all key contracts and permits secured.

• Sales revenues for 9M 2024 were PLN 3,016.3 million, down 26% year-over-year, mainly due to lower trading and sales segment revenues.

Financial highlights

• 9M 2024 EBITDA: PLN 544.9 million (+30% YOY); Q3 2024 EBITDA: PLN 150.3 million (+35% YOY).

• 9M 2024 adjusted net profit: PLN 296.9 million (+39% YOY); Q3 2024 adjusted net profit: PLN 74.5 million (+70% YOY).

• 9M 2024 net profit: PLN 294.0 million (+41% YOY); Q3 2024 net profit: PLN 73.7 million (+78% YOY).

• 9M 2024 sales revenues: PLN 3,016.3 million (-26% YOY); Q3 2024 sales revenues: PLN 911.5 million (-27% YOY).

• EBITDA margin for 9M 2024: 18.1% (up from 10.3% YOY); Q3 2024: 16.5% (up from 8.9%).

Outlook and guidance

• 89% of 2025 energy production target hedged at a weighted average net price of PLN 408/MWh, above current forward quotes but lower than 2024.

• Long-term contracts for difference (CfD) for Bałtyk 2 and 3 at PLN 319.6/MWh for 25 years, indexed to inflation and settled in EUR.

• Offshore wind projects Bałtyk II and III progressing toward financial close in Q1 2025; all key contracts and permits secured.

• Ongoing focus on hedging strategies to ensure stable cash flows amid expected lower electricity prices in coming years.

• Strategic review ongoing for hydrogen and electromobility investments; possible changes in project scope or implementation.