Litgrid (LGD1L) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 increased by 18% year-over-year to €197.7m, driven by higher additional services and balancing energy revenues, despite a drop in transmission service income.

• Net profit rose 22.5% year-over-year to €28.1m, with an EPS of €0.056.

• Strategic investments and projects, especially for synchronization with continental Europe, advanced, with 79.3% completion as of June 30, 2024.

• Dividend payout for 2023 was €0.058 per share, totaling €29.3m.

• The company maintained strong liquidity and reduced net financial debt by €6.6m year-over-year.

Financial highlights

• EBITDA for H1 2024 was €40.6m, up 15.9% year-over-year; adjusted EBITDA reached €24.8m, up 22.1%.

• EBIT increased 18.5% to €29.5m; net profit margin improved to 14.2%.

• ROE rose to 25.1% (adjusted ROE: 12.3%), and net financial debt/adjusted EBITDA improved to 0.9x.

• Investments surged 67.6% to €90.2m, mainly in strategic and grid development projects.

• Free cash flow for H1 2024 was €69.5m, a significant turnaround from negative FCF in H1 2023.

Outlook and guidance

• Synchronization with continental Europe is targeted for February 2025, with all key infrastructure projects on track.

• Strategic focus remains on grid modernization, integration of renewables, and digital transformation.

• 2024 targets include ROE ≥11.7%, adjusted EBITDA ≥€49.9m, and continued high customer satisfaction.