Ignitis grupe (IGN1L) H1 2024 earnings summary

Executive summary

• Adjusted EBITDA rose 14.3% year-over-year to EUR 289.7 million, driven by Green Capacities and Networks, with Green Capacities contributing 46.4% of total Adjusted EBITDA.

• Investments increased 4.9% year-over-year to EUR 422.3 million, with 63.8% directed to Green Capacities and 87.8% in Lithuania.

• S&P reaffirmed BBB+ credit rating with stable outlook; dividend of EUR 0.663 per share (EUR 48 million) proposed for 6M 2024.

• Green Capacities portfolio expanded by 0.6 GW to 7.7 GW, with installed capacity up 0.1 GW to 1.4 GW, and three projects completed in H1 2024.

• Scope 2 emissions reduced by 41.9%, occupational health metrics maintained, and ESG ratings improved.

Financial highlights

• Adjusted net profit up 9.7% year-over-year to EUR 164.6 million, driven by higher adjusted EBITDA.

• Total revenue for 6M 2024 was EUR 1,092.3 million, down 20.3% year-over-year, mainly due to lower Customers & Solutions segment revenue.

• Return on capital employed decreased by 0.9 percentage points to 10.4% due to lag in investment returns.

• Net debt increased by 7.1% to EUR 1,411.0 million; FFO to net debt at 32%, net debt to adjusted EBITDA at 2.7x.

• Free cash flow was negative at EUR -105 million due to investments exceeding EBITDA and working capital changes.

Outlook and guidance

• 2024 adjusted EBITDA guidance raised to EUR 450–480 million from EUR 440–470 million.

• Investment guidance maintained at EUR 850 million–1 billion, focused on Green Capacities and Networks.

• Green Capacities and Networks segments expected to outperform 2023, while Reserve Capacities and Customers & Solutions are expected to be lower.

• No changes in segmental EBITDA guidance; H2 expected to see lower Reserve Capacity and Network segment results due to temporary effects in H1.