Tauron posted PLN 839m net profit, PLN 2,044m EBITDA in 2Q 2023

Tauron Polska Energia reported PLN 839m consolidated net profit attributable to shareholders of the parent company in Q2 2023, compared to PLN 273m loss a year earlier, the company said.

Results for Q2 (and H1) 2022 are reported on a combined basis from continuing operations and discontinued operations, the company stipulated.

Operating profit amounted to PLN 1,488 million compared to a loss of PLN 252 million a year earlier. EBITDA profit reached PLN 2 044 million against PLN 396 million profit a year earlier.

Consolidated sales revenue reached PLN 9,723 million in Q2 2023 against PLN 8,311 million a year earlier.

In 1H 2023, the company posted PLN 1,873m in consolidated net profit attributable to equity holders of the parent, compared to PLN 627m in profit a year earlier, on sales revenue of PLN 23,282m compared to PLN 18,124m a year earlier. EBITDA profit reached PLN 4,274 million compared to PLN 2,351 million profit in this terms a year earlier.

Tauron Group achieved in the first half of 2023. PLN 4.3 billion EBITDA, i.e. 82% more than last year, and net profit attributable to the shareholders of the parent company amounted to PLN 1.87 billion, compared to PLN 627 million obtained in the same period of 2022 (an increase of nearly 200%). The Distribution segment had the largest share of the Tauron Group's EBITDA, accounting for 55%. Group EBITDA, as well as the Generation segment, whose share in the EBITDA of H1 2023 was 22%. The EBITDA of the Sales segment accounted for 13% and that of the RES segment 6% of the Group's total EBITDA, according to the company results.

In H1 2023, the EBITDA margin from continuing and discontinued operations was 18.4%, 5.4 percentage points higher than the EBITDA margin generated in the corresponding period of 2022. The Group also improved its net profit margin by 4.6 p.p. The increase in margins was significantly impacted by the recognition of a provision for onerous contracts in the amount of PLN 943 million in the H1 2022 results, as well as the significant year-on-year improvement in the results of the Distribution and Sales segments.

Sales revenues generated in H1 2023 by the Tauron Group, including compensation received, amounted to PLN 27.6 billion and were 56% higher than the revenues from continuing operations generated in the corresponding period of 2022, mainly due to a significant increase in market electricity prices and due to higher revenues from the sale of distribution services as a consequence of the increase in the distribution and transmission service rate. In the first half of 2023. TAURON Group recorded a 47% y-o-y increase in costs of continuing operations, which was mainly influenced by an increase in the costs of fuel, electricity and CO2 emission allowances, the company announced.

In addition, H1 2023 costs included the value of the write-down for the Price Difference Payment Fund in the total amount of PLN 353 million (including within segments: Sales of PLN 288 million, Generation of PLN 49 million, Renewable Energy of PLN 4 million and within Other Activities of PLN 12 million), the company added.

Due to the significant improvement in EBITDA for the last 12 months, the net debt/EBITDA ratio has decreased from 2.9x at 31 December 2022 to 2.0x at 30 June 2023, Tauron reported.

The Tauron Group's capital expenditures in H1 2023 amounted to PLN 1,865 million and were 26% higher than those incurred in the same period of 2022, when they amounted to PLN 1,481 million. Most funds (PLN 1,220 million) were allocated to investments in the Distribution segment and were mainly related to the construction of new connections and the modernisation and restoration of existing distribution networks, Tauron reported in its report.

In second place in terms of capital expenditures was the Renewable Energy segment, which allocated PLN 310 million for the construction of wind farms, photovoltaic farms and the modernisation of hydroelectric power plants, Tauron stressed.

On a standalone basis, net profit in H1 2023 amounted to PLN 104 million compared to PLN 1,653 million profit a year earlier.

Tauron Polska Energia is a holding company in the group, which mines coal, generates, distributes and sells electricity and heat. The Tauron Group covers 18% of the country and is the largest distributor of energy in Poland and one of the largest businesses in the country. The company had revenues of PLN 36.31 billion in 2022.

Source: Tauron and ISBnews