Details of the webcast from the meeting with CEO & CFOAugust 8, 2018 (Wednesday), 10.00 AM CEST
Link to the webcast:www.gkpge.pl/en
Questions for Q&A session allowed via email:pgeresults@gkpge.pl
Investor Release
August 7, 2018
Investor relations contact:
Jakub Frejlich, Head of IR tel.: +48-22-340-1032 mob: +48-695-883-902 e:jakub.frejlich@gkpge.pl
Operations: good performance on like for like basis, extra boost from acquire assets
Financials: good result boosted with acquisition under one-off impact
CAPEX: continuation of strategic projectsin Opole and TurówPGE in transition: underway plans for district heating initiatives
Group H1'18EBITDA of PLN 3.7 bn (+7% y/y); Group recurring H1'18EBITDA of PLN 3.8 bn (+12% y/y),
Power generation with +18% y/y growth - doubled volumes on coal; almost tripled volumes of heat sales,
Update from construction sites: Opole ready in 92%, Turówwith approx. 66% of completed construction works,
Responsible energy of tomorrow: further milestones in integration, Waste-to-Energy plant and investment plans.
Acquired assets supportive for stable growth of the Group
ConsolidatedEBITDA in H1'18 amounted to PLN 3.7 bn, higher by 7% y/y - achieved with support of acquired assets in heating season and despite higher level of overhauls of lignite-fired unitsin Q1'18. PLN 3.8 bn recurring EBITDA, 12% growth y/y. Conventional Generation in H1'18 supported with performance of acquired assets (+14% y/y, H1'18 EBITDA of PLN 1.8 bn). Distribution segment being the source of stable EBITDA growth (+4% y/y, H1'18 EBITDA of PLN 1.3 bn). High prices of electricity (spot) and property rights supported EBITDA of Renewables (+31% y/y, H1'18 EBITDA of PLN 222 m). Supply segment results (-28% y/y, H1'18 EBITDA of PLN 302 m) due to high base period effect.
Significantly better volumes due tonew asset'simpact
H1'18 with visible acquisition impact: almost tripled volume of heat sales: approx. 29 PJ in H1'18-effect of acquired assets and its performance in heating season.H1'18with almost doubled coal volumes y/y and sound growth in gas-fired units: approx. 4.5 TWh of additional power generation coming from acquired coal assets: +2.4 TWh from Rybnik power plant , +2.0 TWh from acquired coal CHPs and +0.9 TWh from acquired gas-fired CHPs. Weaker volumes from lignite-effect ofQ1'18 lower due to overhauls in Bełchatów and Turówpower plants. Lower volumes generated from renewable resources-mainly weaker wind generation.
CAPEX: continuation of Opoleand Turówprojects
Overall progress of works at Opole II project of approx. 92%. New commissioning dates and rescheduled payments influencing CAPEX realization. Ongoing further works on construction site. Progress of construction works inTurówreached 66%-completed construction of a cooling tower shell. Construction of a coal-feed system and technological feed system in progress as part of ancillary works.
Changing generation profile-further milestones of integration, Waste-to-Energy unit and other plans
Further implementation of District Heating Strategy of the Group: process of integration scheduled to be ended by January 2, 2019. Further cogeneration developments based on low-emission sources: new capacities within Czechnica CHP, smaller projects in Bydgoszcz, Kielce, Zgierz and Zielona GóraCHPs. Continuation of announced Rybnik project ensuring district heating for local citizens. Waste-to-Energy unitin Rzeszówto be commissioned soon. Letters of intent regarding the analysis of the development of district heating capacitiesfor Nowy Sącz and Wadowice(see the map of mentioned location on slide no 5 ofH1'18results presentation).
Published draft regulation on power market parameters, including the power demand in the main auction, in line with our expectations. We are pleased that the preparations for the introduction of the power market run smoothly.
August 7, 2018
Key Financials
PLNm
Q2 2018
Q2 2017
Sales
y/y [%]
5 734
H1 2018
4 879
18%
Sales recurring* EBITDA
5 831
4 879
1 461
20%
1 497
12 871
12 954
-2%
EBITDA recurring** EBIT
1 573
1 489
516
6%
731
3 675
-29%
EBIT recurring** Net profit (to equity)
714
758
346
-6%
533
3 775
1 831
-35%
Net profit (to equity) ex. Impairments ***
416
561
-26%
2 059
1 281
1 385
H1 2017
10 620
10 620
3 445
3 362
1 932
1 891
1 497
1 531
y/y [%]
22%
12%
9%
-10%
21%
7%
-5%
-14%
* adjusted for LTC compensations; **one-off items summary presented at pg. 21 of H1'18 presentation, ***adjusted for net impairments only
EBITDA by segments
PLNm
Q2 2018551 108 632 113
Q2 2017620 78 604 179
y/y [%]H1 2018
Conventional Generation Renewables
-11% 38% 5% -37%
1 839
222
Distribution Supply
1 270
H1 2017
302
1 612
169
1 222
422
y/y [%]
14% 31% 4% -28%
EBIT by segments
PLNm
Q2 2018-22 44 342 108
Q2 2017224 12 316 172
y/y [%]
H1 2018743 95 688 290
H1 2017855 37 642 409
y/y [%]
Conventional Generation Renewables
Distribution Supply
n/a 267% 8% -37%
-13% 157% 7% -29%
Key operating data
TWh
Net Generation Volume
Sales on the Wholesale Market Sales to End-users
Electricity Distribution Volume
Q2 201815.26 7.09 10.19 8.80
Q2 201712.88 4.51 9.74 8.54
y/y [%]
Electricity generation by source
TWh
Q2 2018
Q2 2017
y/y [%]
Lignite-fired power plants Hard coal-fired power plants Coal-fired CHPs
9.43
H1 2018
9.36
1%
H1 2017
19.25
3.98
2.30
73%
7.93
19.93
4.81
0.64
y/y [%]
-3%
65%
0.14
357%
2.44
0.52
Gas-fired CHPs Biomass-fired CHPs Pumped-storage Hydro
0.75
0.51
47%
2.24
0.03
1.46
0.05
369%
53%
-40%
0.08
0.10
0.09
0.08
13%
0.20
0.18
0.10
-20%
11%
0.14
-29%
0.25
0.26
Wind TOTAL
0.24
0.30
-20%
0.53
15.26
0.62
12.88
-4%
-15%
18%
32.92
27.88
Renewable generation incl. biomass co-combustion
0.41
0.51
-20%
0.92
0.04
1.04
0.02
18%
-12%
100%
0.06
0.06
0%
Details of the webcast from the meeting with CEOAugust 7, 2018 (Wednesday), 10.00 CEST
Link to the webcast:www.gkpge.pl/en
Questions for Q&A session allowed via email:pgeresults@gkpge.pl
Further information:Jakub Frejlich, Head of IRtel: +48-22-340-1032 mob: +48-695-883-902 e:jakub.frejlich@gkpge.pl
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PGE - Polska Grupa Energetyczna SA published this content on 07 August 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 07 August 2018 16:40:01 UTC