Energa (ENG) Q2 2024 earnings summary

Executive summary

• Q2 2024 saw a year-over-year improvement in net profit and EBITDA, driven by strong Distribution performance and a low base effect from Q2 2023.

• H1 2024 net profit was PLN 833m, down from PLN 1,424m year-over-year, with mixed segment results: stable Distribution, weaker Sales and Generation.

• The Group operates in distribution, generation, and sales of electricity and heat, with ORLEN S.A. as the parent company.

• Capital expenditures increased, focusing on grid development, modernization, and major power plant projects.

Financial highlights

• Q2 2024 revenues were PLN 5,352m, down 11% YoY; H1 2024 revenues were PLN 10,265m, down from PLN 11,194m YoY.

• Q2 2024 adjusted EBITDA was PLN 972m (>100% YoY); H1 2024 EBITDA was PLN 2,109m, down from PLN 2,607m YoY.

• Q2 2024 net profit was PLN 356m (>100% YoY); H1 2024 net profit was PLN 833m, down from PLN 1,424m YoY.

• Operating expenses decreased YoY in both Q2 and H1 2024.

• Earnings per share for H1 2024 were PLN 2.04, down from PLN 3.44 in H1 2023.

Outlook and guidance

• Regulatory changes extended electricity price caps and compensation mechanisms into H2 2024.

• New tariffs for G tariff group customers approved for July 2024–December 2025 at PLN 623/MWh; expected PLN 350m negative impact on H2 2024 results.

• Performance in 2024 will be influenced by geopolitical tensions, energy and certificate prices, inflation, CO2 and coal prices, regulatory changes, and weather conditions.