Ignitis Grupa's Q3 2024 Report Shows Resilience and Growth

Strong Performance in 2024 Interim Report

AB “Ignitis grup?” presents its interim report for the first nine months of 2024, revealing impressive financial results. The Group achieved an Adjusted EBITDA of EUR 397.0 million, representing a substantial growth of 15.0% compared to the previous year. This remarkable increase is largely attributed to enhanced outcomes in the Green Capacities and Networks segments of the business.

Investment Strategies Driving Growth

During this period, Ignitis Grupa made significant investments totaling EUR 583.7 million. Out of this amount, EUR 335.2 million, or approximately 57.4%, was allocated towards the Green Capacities segment, focusing primarily on developing new onshore wind farms in the region. A noteworthy 85.4% of these investments were concentrated in local projects, reinforcing the Group's commitment to the energy transition.

Leverage Metrics and Credit Rating

The Group maintained strong leverage metrics, with the Funds From Operations (FFO) to Net Debt ratio improving to 34.2%, an increase from 29.4%. Additionally, the credit rating agency S&P Global Ratings affirmed the Group’s 'BBB+' credit rating with a stable outlook, reflecting confidence in Ignitis' financial health.

Advancements in Green Capacities

In the Green Capacities arena, the Group expanded its portfolio to 7.7 GW, with the installed capacity reaching 1.4 GW. Further milestones were achieved, including winning tender bids for new offshore wind sites and completing several important projects in conjunction with various partners.

Key Projects and Achievements

Some of the key achievements in this segment include:

• Securing the Liivi 1 seabed site in Estonia, alongside continued development of Liivi 2.
• Completion of the Silesia WF I (50 MW) in Poland, marking a significant milestone in energy generation.
• Full commercial operation of the Vilnius CHP biomass unit, enhancing sustainable energy production.
• Successful investment decisions regarding various wind farms in Latvia and Lithuania.

Investment in Future Energy Solutions

As part of its broader strategy, Ignitis Grupa is proactive in the Networks sector as well. The Group submitted an updated 10-year investment plan highlighting a 40% increase in planned investments, envisioning a total of EUR 3.5 billion. This plan will bolster electricity distribution and enhance the natural gas distribution infrastructure.

Innovative Customer Solutions

In staying ahead of the curve, Ignitis continues to expand its electric vehicle charging network in the Baltics, having installed an additional 867 charging points, which is a remarkable growth of 491 points since the end of the previous year.

Focus on Sustainability and Emissions Reduction

Ignitis Grupa remains committed to sustainability, with 83.6% of its electricity generation classified as green energy, despite some fluctuations due to increased production from CCGT facilities. The Group has achieved a significant reduction of 34.5% in Scope 2 GHG emissions while keeping track of overall emissions and striving towards targets aimed at minimizing environmental impact.

Health and Safety Initiatives

In terms of employee safety, Ignitis reported no fatal accidents, with both contractor and employee metrics indicate a commitment to improving workplace safety. Their employee net promoter score stands strong at 67.0, showcasing a positive work environment.

Financial Performance and Future Outlook

Reflecting its healthy financial trajectory, the Group distributed a competitive dividend of EUR 0.663 per share amounting to EUR 48 million for the first half of 2024. Based on the positive growth of its Green Capacities segment, Ignitis Grupa has increased its full-year Adjusted EBITDA guidance to EUR 480–500 million, an improvement from initial projections. Furthermore, the investment forecast for the upcoming year has been adjusted to EUR 750–900 million.

Frequently Asked Questions

What was the Adjusted EBITDA for the first nine months of 2024?

The Adjusted EBITDA amounted to EUR 397.0 million, reflecting a 15.0% increase year-over-year.

How much did Ignitis Grupa invest in Green Capacities?

Ignitis Grupa invested EUR 335.2 million in the Green Capacities segment, focusing on new renewable energy projects.

What is the current credit rating of Ignitis Grupa?

S&P Global Ratings has assigned a ‘BBB+’ rating with a stable outlook to Ignitis Grupa.

Has the Group expanded its green energy portfolio?

Yes, the Green Capacities portfolio has expanded to 7.7 GW, with several key projects completed in nine months.

What are the sustainability goals of Ignitis Grupa?

Ignitis aims to maintain a high percentage of green energy generation while reducing its overall greenhouse gas emissions significantly.

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