Litgrid (LGD1L) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 increased by 18.5% year-over-year to €197.7 million, driven by higher ancillary and balancing services income, despite a decline in transmission service revenue due to prior year tariff compensation from congestion management revenues.

• Net profit rose 22.5% year-over-year to €28.1 million, with EBITDA up 16% to €40.6 million and EBIT up 18.5% to €29.5 million.

• Investments surged 67.6% to €90.2 million, mainly allocated to strategic electricity projects, including network synchronization with continental Europe.

• The company maintained a strong liquidity position, with free cash flow of €69.5 million and net financial debt reduced by €6.6 million to €36.4 million.

Financial highlights

• Revenue: €197.7 million (+18.5% YoY); EBITDA: €40.6 million (+16% YoY); EBIT: €29.5 million (+18.5% YoY); Net profit: €28.1 million (+22.5% YoY).

• EBITDA margin: 20.5%; Net profit margin: 14.2%; Adjusted EBITDA: €24.8 million (+22.1% YoY); Adjusted net profit: €14.7 million (+41% YoY).

• Investments: €90.2 million (+67.6% YoY), with 62% directed to strategic projects.

• Net financial debt/Adjusted EBITDA improved to 0.9x from 1.2x.

• Dividend of €0.058 per share paid in H1 2024.

Outlook and guidance

• Synchronization with continental Europe scheduled for February 2025, with 79.3% of strategic projects completed by June 2024.

• Strategic focus on enabling renewable energy integration, digital transformation, and customer-centric services.

• Ongoing investments in infrastructure and innovation to support energy transition and system reliability.