ENEA (ENA) Q2 2024 earnings summary

Executive summary

• Net profit for H1 2024 reached PLN 1,969.7m, reversing a net loss in H1 2023, driven by higher operating profit, lower taxes, and improved segment contributions.

• Revenue for H1 2024 was PLN 16.1bn, down sharply year-over-year due to lower electricity prices and volumes.

• EBITDA for H1 2024 was PLN 3.5bn, up 50% year-over-year, with significant improvement in Trade and Distribution segments.

• Focus on sustainable development and transition to renewables, with updated strategy in final approval phase.

• Significant support for flood-affected regions, allocating PLN 1 million for relief and network restoration.

Financial highlights

• Operating profit for H1 2024 was PLN 2,744.0m, compared to PLN 723.6m in H1 2023.

• Net profit margin for H1 2024 was 12.9%, up from -0.2% in H1 2023.

• EBITDA margin for H1 2024 was 18.5%, up from 3.6% in H1 2023.

• Net debt/EBITDA LTM improved to 0.39 from 1.71 year-over-year.

• Extraordinary one-off income from hedging and forward contracts, totaling around PLN 900 million.

Outlook and guidance

• Updated group strategy to be presented soon, focusing on renewables and energy transformation.

• CapEx plan for 2024 exceeds PLN 4.6 billion, with majority allocated to distribution and renewables.

• Focus remains on investments in distribution and renewables, supported by new credit agreements and bond issues.

• Dividend policy under review, with clarity expected after strategic and regulatory decisions on coal assets.

• The Group will continue to pursue the strategy of spinning off coal-based generation assets.