Almost PLN 420 million of EBIDTA and PLN 214 million of net profit. Polenergia publishes results after three quarters of 2023

Better financial results for the first three quarters are a consequence of the higher result of the trading and sales segment (by PLN 110.5 million) and the wind farm segment (by PLN 80.3 million) compared to the results from the same period last year. The result was partially offset by a lower result in the distribution segment (by PLN 6.5 million) and in the unallocated segment (by PLN 8.8 million).

The Group’s sales revenues for the three quarters of 2023 were lower than last year’s by PLN 1,063.6 million, which is mainly due to lower revenues in the trading segment and sales (by PLN 1,236.2 million) partially offset by higher revenues in the wind farm segment (by PLN 111.5 million), gas and clean fuels segment (by PLN 31.5 million) and distribution (by PLN 21.3 million).

Adjusted EBITDA in the third quarter of 2023 amounted to PLN 110.9 million and was higher by PLN 77.9 million compared to the result in the corresponding period of the previous year. This was mainly due to higher results in the trading and sales segment (by PLN 67.7 million) and in the onshore wind farm segment (by PLN 13.4 million).

In the third quarter, the Group recorded a decrease in sales revenues by PLN 88.8 million compared to revenues in the corresponding period of 2022, which was mainly due to lower revenues in the trading and sales segment (by PLN 122.3 million), partially offset by higher revenues in the onshore wind farm segments (by PLN 28.3 million) and distribution (by PLN 5.4 million).

A sudden increase in power on land

In the first nine months of 2023, the onshore wind farm segment recorded an EBITDA result higher by PLN 80.3 million compared to the result from the previous year. This is a consequence of the launch of three wind farm projects with a total capacity of 178 MW. The license for the production of green energy was granted to the Dębsk Wind Farm with a capacity of 121 MW, the Piekło Wind Farm with a capacity of 13.2 MW and the Grabowo Wind Farm with a capacity of 44 MW.

The nearest plans include opening the largest photovoltaic farm in the Group. The project of  Strzelino FF with a capacity of 45.2 MW is in an advanced construction phase and the works are progressing according to schedule. Their completion is planned for December this year, and the license will be obtained in the first quarter of 2024.

On October 5, the Group announced its entry into Romania, concluding a conditional agreement with the Romanian company Naxxar Wind Farm Four Srl. It assumes the acquisition of 60% of shares in a company that is developing one of the largest wind farms in this part of Europe. The project with a total capacity of up to 685.6 MW has technical conditions for connection to the grid.

Offshore at the next stage of development

Work continues in the offshore wind farm segment. Polenergia holds 50% of shares in companies preparing the construction of three offshore wind farms with a total capacity up to 3,000 MW located in the Baltic Sea.

Bałtyk II and Bałtyk III, with a total capacity of 1,440 MW, are among the most advanced projects in the Polish exclusive economic zone. In October 2023, the design companies signed contracts for the design, production, delivery and installation of internal cables and export cables.

Offshore work, including cable installation, will start in 2026. Internal cables with a total length of 200 kilometers will connect offshore turbines and two marine power stations. Electricity will flow through export cables with a total length of 256 kilometers from marine power stations to land stations.

Preliminary geophysical and geotechnical research has been started for the Bałtyk I project with a capacity of up to 1,560 MW in the area of the offshore wind farm and undersea cable corridors.

The group is preparing the Bałtyk I project for auction in 2025.

Results of distributed energy

In the third quarter of 2023, there was an increase in sales of photovoltaic panels and heat pumps, implemented by Polenergia Fotowoltaika. In the third quarter, it installed 8.5 MWp of photovoltaic panels and 126 energy storage facilities. In the heat pump segment, 233 pieces of these devices were installed. Sales of services in the corporate segment continue (larger installations with a capacity above 50 kWp).

In September, Polenergia Fotowoltaika announced its entry into the Czech market. Polenergia Solární, established in Prague, designs and supplies photovoltaic systems for our southern neighbors. The company offers comprehensive service to Czech customers, including professional selection of installation power, individual design, professional installation, monitoring and after-sales support.

Long-term cPPAs

In September, Polenergia Obrót concluded an agreement for the sale of electricity with the Northvolt Factory in Gdańsk. The Group will cover 100% of the annual electricity demand for the newly built factory. Northvolt is a European manufacturer of lithium-ion cells and battery systems that are produced in an environmentally sustainable manner. The cPPA agreement concerns the sale of green energy produced by the Szymankowo Wind Farm with a capacity of 38 MW.

Polenergia Obrót signed a similar agreement with PURO Hotels in October. PURO is a chain of hotels located in the centers of the largest cities in Poland. Last year, nearly half a million guests visited PURO hotels. The sales contract is also based on the cPPA formula. Green energy for PURO facilities will be produced, among others: at the Grabowo Wind Farm with a capacity of 44 MW and the Strzelino Photovoltaic Farm with a capacity of 45 MWp.

Signing an energy sales agreement with customers with a stable financial position is consistent with the long-term strategy of commercialization of generation sources adopted by the Group. This model secures the revenue stream and makes it independent of price fluctuations on the energy market.

10 million shares in a public offering

On October 19, the Management Board of the company under the name Polenergia S.A. announced to the public information about the completed public offering. As part of the Offer, 10,416,667 Offered Shares were allocated, which were acquired at the issue price of PLN 72. The value of the subscription for the Offered Shares, understood as the product of the number of Offered Shares covered by the offer and the sales price, amounted to PLN 750,000,024 (seven hundred fifty million and twenty-four PLN).

On November 6, District Court for the Capital City of Warsaw in Warsaw, 12th Commercial Division of the National Court Register, registered an amendment to the Articles of Association of Polenergia S.A. regarding the increase in the Company’s share capital. The Company’s share capital currently amounts to PLN 154,437,826.