Ignitis Group grew in all segments in 2020

Ignitis Group grew in all segments in 2020 leading to 10% higher adjusted EBITDA than previously forecasted

AB “Ignitis grupė” (hereinafter – the Company) states that in 2020 adjusted EBITDA of the Company’s group of companies (hereinafter – Ignitis Group or the Group) reached EUR 291.6m and was approximately 10% higher than previously forecasted (EUR 265–269m).  

Compared to adjusted EBITDA in 2019, which reached EUR 259.9m, last year it grew by a solid 12.2% – it was driven by increase in results across all Group segments. The main reasons of the positive change are continuous investments into network resilience, connection of new customers and capacity upgrades, consistent increase of Green Generation portfolio as well as effectively managed diversified assets portfolio, which allows to benefit from extraordinary market conditions. The latter reason resulted in effective utilisation of fluctuations in electricity and gas market prices, when Kruonis PSHP and combined cycle gas turbine of Elektrėnai Complex were utilised exceptionally efficiently, which resulted in higher-than-expected results for 2020.

Growth in all business segments

Increase of 17% in adjusted EBITDA of Green Generation segment was influenced by better results of Kruonis PSHP and Kaunas CHP, which commenced commercial operations. Increase in Networks segment (+10%) was mainly driven by continuous investments into network resilience as well as connection of new customers and capacity upgrades. Flexible Generation segment grew due to successful commercial operations of Elektrėnai Complex. The increase in Customers and Solutions segment was mainly caused by expansion into Finnish natural gas market.

Green Generation development

In 2020 the Group continued focused and sustainable growth in the Green Generation segment. The installed Green Generation capacity increased last year by 24 MW and reached 1,101 MW. This was driven by commenced commercial operations of Kaunas CHP, which also contributed to the increase in green energy generation volume (+20.3%) to 1.25 TWh. Higher generation volume of Kruonis PSHP also had positive impact on it.

Shareholder return

Group management propose EUR 43m dividend pay-out (EUR 0.58 per share) to shareholders for the second half of 2020 which complies with the provisions of the Group Dividend Policy approved in autumn of 2020. The total planned dividend amount to be allocated for the 2020 financial year is EUR 85m. It must be noted that for the first half of 2020 the Group paid EUR 42m to the Principal Shareholder prior to the IPO of Ignitis Group.