Ignitis grupe (IGN1L) Q3 2024 earnings summary

Executive summary

• Adjusted EBITDA rose 15% year-over-year to EUR 397 million, driven by Green Capacities and Networks, with Green Capacities contributing 45.6% of total Adjusted EBITDA.

• Green Capacities Portfolio expanded by 600 MW to 7.7 GW, with key milestones including first power at Kelmė WF (300 MW), Silesia WF II (137 MW), and FID for Tume SF (174 MW).

• Sustainability initiatives led to a Green Share of Generation of 83.6% and a 34.5% reduction in Scope 2 emissions, with high ESG ratings maintained.

• S&P Global Ratings reaffirmed 'BBB+' (stable outlook) credit rating; dividend of EUR 0.663 per share (EUR 48 million) distributed for H1 2024.

• No fatal accidents; TRIR for employees and contractors below targeted thresholds; eNPS at 67.0, up 15.1 year-over-year.

Financial highlights

• Adjusted EBITDA reached EUR 397 million (+15% YoY); Adjusted Net Profit was EUR 213.3 million (+10.5% YoY); Adjusted ROCE rose to 10.3%.

• Total revenue was EUR 1,621.1 million, down 12% year-over-year, mainly due to lower Customers & Solutions segment revenue.

• Investments totaled EUR 583.7 million, with 57% in Green Capacities and 37% in Networks; investments decreased 7.9% year-over-year.

• Free cash flow negative at EUR -124.5 million, but better than expected.

• Net Debt increased by 10% to EUR 1.4 billion; FFO/Net Debt improved to 34.2%; Net Debt/Adjusted EBITDA at 2.7x.

Outlook and guidance

• Full-year 2024 Adjusted EBITDA guidance raised to EUR 480–500 million, driven by Green Capacities performance.

• Investment guidance for 2024 updated to EUR 750–900 million due to timing effects in Green Capacities investments.

• Dividend policy remains at least 3% annual growth; 2025 investment guidance to be communicated with annual results.

• Green Capacities and Networks expected to deliver higher results in 2024 versus 2023; Reserve Capacities and Customers & Solutions expected to be lower.