ENEA (ENA) Q3 2024 earnings summary

Executive summary

• Revenue for Q1–Q3 2024 was PLN 24.2 billion, a 33% decrease year-over-year, reflecting lower electricity prices and volumes in a challenging market environment.

• EBITDA rose 55% year-over-year to PLN 5.3 billion, driven by higher energy resale, foreign exchange gains, balancing market contributions, and improved cost management.

• Net profit for the period surged 352% year-over-year to PLN 2,995.9 million, with significant improvement in profitability across segments.

• The Group recognized PLN 1,270.1 million in compensation revenue related to regulatory measures protecting electricity consumers.

• No contributions to the Price Difference Payment Fund were required in 2024, positively impacting results.

Financial highlights

• Q1–Q3 2024 revenue: PLN 24.2 billion (down 32.7% y/y); Q3 2024 revenue: PLN 8.0 billion (down 32.5% y/y).

• EBITDA for Q1–Q3 2024: PLN 5.3 billion (up 55% y/y); Q3 2024 EBITDA: PLN 1.86 billion (up 65.8% y/y).

• Net profit for Q1–Q3 2024: PLN 2,995.9 million (up 352.3% y/y); Q3 2024 net profit: PLN 1,026.2 million (up 43.2% y/y).

• Net debt/EBITDA LTM improved to 0.02 from 0.48 year-over-year, with net debt at historic lows.

• Cash and cash equivalents at 30 September 2024 stood at PLN 7,386.3 million, up from PLN 3,026.1 million at year-end 2023.

Outlook and guidance

• Plans for dynamic growth in renewables, with over 1 GW of PV and wind projects in progress or planned.

• Capex focus shifting toward RES and distribution, with 2024 investment plan at PLN 4.63 billion, nearly half allocated to distribution.

• Expect further decline in coal-based generation and CDS margins in 2025, with ongoing analysis regarding the potential spin-off of coal assets.

• Continued investment in energy efficiency, grid modernization, and securing diversified external financing.

• Anticipate increased CapEx in distribution and renewables, aligned with a five-year plan.