Results on individual areas of operations of Enea CG
| EBITDA [PLN ‘000] | 2015 | 2016 | Change | Change % | Q4 2015 | Q4 2016 | Change | Change % |
|---|---|---|---|---|---|---|---|---|
| Trade | 126 095 | 153 996 | 27 901 | 22.1% | 38 456 | 36 306 | -2 150 | -5.6% |
| Distribution | 1 138 882 | 1 111 327 | -27 555 | -2.4% | 306 030 | 253 858 | -52 172 | -17.0% |
| Generation | 895 409 | 517 490 | -377 919 | -42.2% | 187 113 | 52 379 | -134 734 | -72.0% |
| Generation excluding one-offs 1) | 602 262 | 646 490 | 44 228 | 7.3% | 187 113 | 181 379 | -5 734 | -3.1% |
| Mining 2) | 156 107 | 611 779 | 455 672 | 291.9% | 156 107 | 174 722 | 18 615 | 11.9% |
| Other activity | 19 252 | 27 513 | 8 261 | 42.9% | -9 871 | -4 866 | 5 005 | 50.7% |
| Undistributed items and exclusions | -205 874 | -94 281 | 111 593 | 54.2% | -153 206 | -13 154 | 140 052 | 91.4% |
| Total EBITDA | 2 129 871 | 2 327 824 | 953 | 9.3% | 524 629 | 499 245 | -25 384 | -4.8% |
Enea CG 2016:
The highest EBITDA in the area of Distribution
The highest growth in EBITDA in the area of Mining by PLN 456 mln
Enea CG Q4 2016:
The highest EBITDA in the area of Distribution
The highest growth in EBITDA in the area of Mining PLN 19 mln
Area of Trade
| [PLN ‘000] | 2015 | 2016 | Change | Change % | Q4 2015 | Q4 2016 | Change | Change % |
|---|---|---|---|---|---|---|---|---|
| Sales revenue | 5 932 050 | 7 178 766 | 1 246 716 | 21.0% | 1 714 166 | 2 077 804 | 363 638 | 21.2% |
| EBIT | 125 312 | 153 203 | 27 891 | 22.3% | 38 262 | 36 063 | -2 199 | -5.7% |
| Amortisation / depreciation | 783 | 793 | 10 | 1.3% | 194 | 243 | 49 | 25.3% |
| EBITDA | 126 095 | 153 996 | 27 901 | 22.1% | 38 456 | 36 306 | -2 150 | -5.6% |
| CAPEX | 26 520 | 15 219 | -11 301 | -42.6% | 2 671 | 14 071 | 11 400 | 426.8% |
| Share of revenue from sales in the segment in the sales revenue of the Group | 44% | 45% | 1 p.p. | 44% | 48% | 4 p.p. |
Enea SA conducts retail sales of electricity and gas
Wholesale is performed by Enea Trading sp. z o.o.
2016 EBITDA change drivers:
First contribution margin
(–) lower energy average selling price by 1.4%
(–) higher costs of ecological obligations by 2.7%
(+) lower average purchase price of energy by 1.7%
(+) growth in energy sale volumes by 3.0%
(+) higher result on trade in gas
Own costs
(–) higher direct costs of sales by PLN 9 mln
(–) higher general and administrative costs by PLN 1 mln
(–) higher costs of common services by PLN 5 mln
Other factors
(+) lower provisions for litigation and latent claims PLN 15 mln
(+) lower written off debts PLN 19 mln
(–) costs of donations by PLN 7 mln
(–) higher impairment of receivables PLN 4 mln
Q4 2016 EBITDA change drivers:
First contribution margin
(–) lower energy average selling price by 1.3%
(+) lower costs of ecological obligations by 17.6%
(+) lower average purchase price of energy by 2.7%
(+) growth in energy sale volumes by 3.6%
(+) higher result on trade in gas
Own costs
(–) higher direct costs of sales by PLN 1 mln
(–) higher costs of common services by PLN 3 mln
Other factors
(–) higher impairment of receivables by PLN 7 mln
(–) costs of donations by PLN 7 mln
(+) lower written-off debts PLN 6 mln
Area of Distribution
| [PLN ‘000] | 2015 | 2016 | Change | Change % | Q4 2015 | Q4 2016 | Change | Change % |
|---|---|---|---|---|---|---|---|---|
| Sales revenue | 3 069 481 | 3 083 878 | 14 397 | 0.5% | 801 209 | 810 333 | 9 124 | 1.1% |
| distribution services to end users | 2 824 487 | 2 887 972 | 63 485 | 2.2% | 721 931 | 746 882 | 24 951 | 3.5% |
| fees for grid connection | 98 092 | 67 564 | -30 528 | -31.1% | 43 616 | 19 845 | -23 771 | -54.5% |
| other | 146 902 | 128 342 | -18 560 | -12.6% | 35 662 | 43 606 | 7 944 | 22.3% |
| EBIT | 702 059 | 631 607 | -70 452 | -10.0% | 197 864 | 135 476 | -62 388 | -31.5% |
| Amortisation / depreciation | 436 823 | 479 720 | 42 897 | 9.8% | 108 166 | 118 382 | 10 216 | 9.4% |
| EBITDA | 1 138 882 | 1 111 327 | -27 555 | -2.4% | 306 030 | 253 858 | -52 172 | -17.0% |
| CAPEX | 925 106 | 920 413 | -4 693 | -0.5% | 434 394 | 274 937 | -159 457 | -36.7% |
| Share of revenue from sales in the segment in the net sales revenue of the Group | 23% | 19% | -4 p.p. | 20% | 19% | -1 p.p. |
Enea Operator sp. z o.o. distributes electricity to 2.5 mln Customers in the western and north-western Poland The basic task of Enea Operator is a continuous and reliable supply of energy maintaining appropriate quality parameters.
In the area of Distribution the financial data of the following companies is presented:
- Enea Operator sp. z o.o.
- Enea Serwis sp. z o.o.
- Enea Pomiary sp. z o.o.
- Annacond Enterprises sp. z o. o.
2016 EBITDA change drivers:
Margin on the licensed operations:
(+) higher revenue from sale of distribution services to end users by PLN 63 mln
(+) lower costs of purchasing electricity for coverage of book-tax difference and own needs by PLN 11 mln
(+) higher revenue from sale of distribution services to other entities by PLN 3 mln
(–) higher costs of purchase of transmission services by PLN 49 mln
(–) lower revenue from grid connection fees by PLN 31 mln
Non-licensed operations:
(–) lower revenue from services as a result of shifting the operations related to the maintenance of street lighting to Enea Oświetlenie by PLN 12 mln
(–) optimisation of the area of distribution service within:
– operational activity and realisation of connections - PLN 14 mln (Enea Serwis)
– meter reading, legalisation and repairs - PLN 3 mln (Enea Pomiary)
(–) lower revenue from sale of goods and materials by PLN 1 mln PLN
Operating expenses:
(–) higher costs of taxes and charges by PLN 13 mln (greater value of grid assets as a result of performed investments)
(–) higher costs of employee benefits by PLN 9 mln, mainly as a result of higher employee benefit provisions
(+) lower costs of IT, exploitation, assets repairs and materials by PLN 20 mln
Other operating activity:
(+) higher revenue from removal of collisions by PLN 22 mln
(–) higher liquidation costs by PLN 9 mln
(–) higher costs of legal provisions relating to grid assets by PLN 4 mln
| [PLN ‘000] | 2015 | 2016 | Change | Change % | Q4 2015 | Q4 2016 | Change | Change % |
|---|---|---|---|---|---|---|---|---|
| Sales revenue | 3 069 481 | 3 083 878 | 14 397 | 0.5% | 801 209 | 810 333 | 9 124 | 1.1% |
| distribution services to end users | 2 824 487 | 2 887 972 | 63 485 | 2.2% | 721 931 | 746 882 | 24 951 | 3.5% |
| fees for grid connection | 98 092 | 67 564 | -30 528 | -31.1% | 43 616 | 19 845 | -23 771 | -54.5% |
| other | 146 902 | 128 342 | -18 560 | -12.6% | 35 662 | 43 606 | 7 944 | 22.3% |
| EBIT | 702 059 | 631 607 | -70 452 | -10.0% | 197 864 | 135 476 | -62 388 | -31.5% |
| Amortisation / depreciation | 436 823 | 479 720 | 42 897 | 9.8% | 108 166 | 118 382 | 10 216 | 9.4% |
| EBITDA | 1 138 882 | 1 111 327 | -27 555 | -2.4% | 306 030 | 253 858 | -52 172 | -17.0% |
| CAPEX | 925 106 | 920 413 | -4 693 | -0.5% | 434 394 | 274 937 | -159 457 | -36.7% |
| Share of revenue from sales in the segment in the net sales revenue of the Group | 23% | 19% | -4 p.p. | 20% | 19% | -1 p.p. |
Q4 2016 EBITDA change drivers:
Margin on the licensed operations:
(+) higher revenue from sale of distribution services to end users by PLN 25 mln
(+) lower costs of purchasing energy for coverage of book-tax difference by PLN 9 mln
(–) higher costs of purchase of transmission services by PLN 20 mln
(–) lower revenue from grid connection fees by PLN 24 mln
Non-licensed operations:
(–) lower revenue from services as a result of shifting the operations related to the maintenance of street lighting to Enea Oświetlenie by PLN 2 mln
(–) optimisation of the area of distribution service within:
– operational activity and realisation of connections - PLN 7 mln (Enea Serwis)
(–) lower revenue from sale of goods and materials by PLN 1 mln PLN
Operating expenses:
(+) lower costs of IT, exploitation, assets repairs and materials by PLN 11 mln
(–) higher costs of employee benefits by PLN 18 mln, mainly as a result of higher employee benefit provisions
(–) higher costs of taxes and charges by PLN 3 mln (greater value of grid assets as a result of performed investments)
Other operating activity:
(+) higher revenue from removal of collisions by PLN 2 mln
(–) higher costs of legal provisions relating to grid assets by PLN 8 mln
(–) higher liquidation costs by PLN 6 mln
Area of Generation
| [PLN ‘000] | 2015 | 2016 | Change | Change % | Q4 2015 | Q4 2016 | Change | Change % |
|---|---|---|---|---|---|---|---|---|
| Sales revenue | 3 531 459 | 3 310 314 | -221 145 | -6.3% | 875 155 | 852 527 | -22 628 | -2.6% |
| electricity | 2 820 195 | 2 909 673 | 89 478 | 3.2% | 744 583 | 727 773 | -16 810 | -2.3% |
| certificates of origin | 120 290 | 45 537 | -74 753 | -62.1% | 36 227 | 9 940 | -26 287 | -72.6% |
| sale of allowance for emissions of CO2 | - | 32 713 | 32 713 | 100.0% | - | 10 642 | 10 642 | 100.0% |
| heat | 275 153 | 296 771 | 21 618 | 7.9% | 85 756 | 97 505 | 11 749 | 13.7% |
| recovery of stranded costs | 293 147 | - | -293 147 | -100.0% | - | - | - | - |
| other | 22 674 | 25 620 | 2 946 | 13.0% | 8 589 | 6 667 | -1 922 | -22.4% |
| EBIT | -905 467 | 178 751 | 1 084 218 | - | -1 393 828 | -60 210 | 1 333 618 | 95.7% |
| Amortisation / depreciation | 299 255 | 247 931 | -51 324 | -17.2% | 79 320 | 63 781 | -15 539 | -19.6% |
| Non-financial fixed assets impairment write-down | 1 501 621 | 90 808 | -1 410 813 | -94.0% | 1 501 621 | 48 808 | -1 452 813 | -96.7% |
| EBITDA | 895 409 | 517 490 | -377 919 | -42.2% | 187 113 | 52 379 | -134 734 | -72.0% |
| CAPEX | 1 954 870 | 1 390 165 | -564 705 | -28.9% | 560 383 | 451 786 | -108 597 | -19.4% |
| Share of revenue from sales in the segment in the net sales revenue of the Group | 26% | 21% | -5 p.p. | 22% | 20% | -2 p.p. |
The area of Generation presents financial data of Enea Wytwarzanie sp. z o.o. and it subsidiaries.
Enea Wytwarzanie holds e.g. 10 highly-efficient and modernised power units in the segment of System Power Plants.
Annual generation capacity amounts to ca. 16 TWh electricity in this segment.
2016 EBITDA change drivers:
Segment of System Power Plants:
(–) in 2015 revenue from LTPPA PLN 293.1 mln - completion of the programme in Enea Wytwarzanie
(–) higher fixed costs by PLN 40 mln - higher provisions for employee benefits by PLN 32.8 mln
(–) lower margin on trade and the Balancing Market by PLN 6.2 mln
(+) higher margin on generation by PLN 71.8 mln
(+) higher result on other activity by PLN 8.5 mln
(+) higher revenue from Regulatory System Services by PLN 2 mln
Segment of Heat:
(+) lower costs of materials by PLN 29.4 mln
(+) higher revenue from sales of heat by PLN 23.2 mln
(–) increase of energy purchasing costs for the needs of sales by PLN 4.6 mln
(–) drop of revenue from certificates of origin by PLN 23.9 mln
Segment of RES:
(–) establishment of the provision in the amount of PLN 129 mln in relation to the estimation of the value of shares in Eco-Power sp. z o. o.
(–) area of Wind (PLN -14.4 mln): lower revenue from certificates of origin by PLN 12.5 mln and lower result on the other operating activities by PLN 1.4 mln
(–) area of Water (PLN -8.0 mln): lower revenue from certificates of origin by PLN 9.1 mln, lower result on the other operating activity by PLN 2.0 mln and higher revenue from electricity by PLN 2.6 mln
(+) area of Biogas (PLN +6.7 mln): in 2015 establishment of provisions for future liabilities in the amount of PLN 6.2 mln
| [PLN ‘000] | 2015 | 2016 | Change | Change % | Q4 2015 | Q4 2016 | Change | Change % |
|---|---|---|---|---|---|---|---|---|
| Sales revenue | 3 531 459 | 3 310 314 | -221 145 | -6.3% | 875 155 | 852 527 | -22 628 | -2.6% |
| electricity | 2 820 195 | 2 909 673 | 89 478 | 3.2% | 744 583 | 727 773 | -16 810 | -2.3% |
| certificates of origin | 120 290 | 45 537 | -74 753 | -62.1% | 36 227 | 9 940 | -26 287 | -72.6% |
| sale of allowance for emissions of CO2 | - | 32 713 | 32 713 | 100.0% | - | 10 642 | 10 642 | 100.0% |
| heat | 275 153 | 296 771 | 21 618 | 7.9% | 85 756 | 97 505 | 11 749 | 13.7% |
| recovery of stranded costs | 293 147 | - | -293 147 | -100.0% | - | - | - | - |
| other | 22 674 | 25 620 | 2 946 | 13.0% | 8 589 | 6 667 | -1 922 | -22.4% |
| EBIT | -905 467 | 178 751 | 1 084 218 | - | -1 393 828 | -60 210 | 1 333 618 | 95.7% |
| Amortisation / depreciation | 299 255 | 247 931 | -51 324 | -17.2% | 79 320 | 63 781 | -15 539 | -19.6% |
| Non-financial assets impairment write-down | 1 501 621 | 90 808 | -1 410 813 | -94.0% | 1 501 621 | 48 808 | -1 452 813 | -96.7% |
| EBITDA | 895 409 | 517 490 | -377 919 | -42.2% | 187 113 | 52 379 | -134 734 | -72.0% |
| CAPEX | 1 954 870 | 1 390 165 | -564 705 | -28.9% | 560 383 | 451 786 | -108 597 | -19.4% |
| Share of revenue from sales in the segment in the net sales revenue of the Group | 26% | 21% | -5 p.p. | 22% | 20% | -2 p.p. |
Q4 2016 EBITDA change drivers:
Segment of System Power Plants:
(–) higher fixed costs by PLN 27.0 mln
(+) higher margin on trade and the Balancing Market by PLN 0.9 mln
(+) higher revenue from Regulatory System Services by PLN 1.0 mln
(+) higher margin on generation by PLN 5.1 mln
(+) higher result on the other operating activity by PLN 11.4 mln
Segment of Heat:
(–) lower revenue from sales of certificates of origin by PLN 12.0 mln
(–) higher employee benefits by PLN 3.9 mln
(–) lower revenue from sale of goods and materials by PLN 1.9 mln
(–) lower revenue on the other operating activity by PLN 2.9 mln
(+) lower costs of materials by PLN 10.7 mln
(+) higher revenue from sales of heat by PLN 11.9 mln
Segment of RES:
(–) establishment of the provision related to the estimation of the value of shares in Eco-Power sp. z o.o. in the amount of PLN 129 mln
(+) area of Biogas (PLN +7.1 mln): in 2015 establishment of provisions for future liabilities in the amount of PLN 5.8 mln, lower costs of substrates by PLN 0.9 mln, higher revenue from certificates of origin by PLN 0.5 mln
(+) area of Water (PLN +1.4 mln): lower costs of salaries by PLN 1.4 mln
(–) area of Wind (PLN -2.9 mln): lower result on the other operating activity by PLN 2.0 mln, lower revenue from certificates of origin by PLN 5.1 mln, lower costs of outsourced services by PLN 3.8 mln, higher revenue from sales of electricity by PLN 0.8 mln
Area of Mining
| [PLN ‘000] | 2015 1) | 2016 | Change | Change % | Q4 2015 1) | Q4 2016 | Change | Change % |
|---|---|---|---|---|---|---|---|---|
| Sales revenue | 362,580 | 1 785 981 | 1 423 401 | 392.6% | 362 580 | 471 878 | 109 298 | 30.1% |
| coal | 355 452 | 1 724 416 | 1 368 964 | 385.1% | 355 452 | 452 043 | 96 591 | 27.2% |
| other products and services | 3 328 | 49 896 | 46 568 | 1 399.3% | 3 328 | 17 223 | 13 895 | 417.5% |
| goods and materials | 3 800 | 11 669 | 7 869 | 207.1% | 3 800 | 2 612 | -1 188 | -31.3% |
| EBIT | 115 666 | 241 189 | 125 523 | 108.5% | 115 666 | 82 250 | -33 416 | -28.9% |
| Amortisation/depreciation | 40 441 | 363 238 | 322 797 | 798.2% | 40 441 | 92 472 | 52 031 | 128.7% |
| Non-financial fixed assets impairment write-down | - | 7 353 | 7 352 | 100.0% | - | - | - | - |
| EBITDA | 156 107 | 611 779 | 455 672 | 291.9% | 156 107 | 174 722 | 18 615 | 11.9% |
| CAPEX | 51 114 | 307 720 | 256 606 | 502.0% | 51 114 | 92 611 | 41 496 | 81.2% |
| Share of sales revenue of the segment in the Group's sales revenue | 3% | 11% | 8 p.p. | 9% | 11% | 2 p.p. |
1) The presented data for 2015 relate to the period of November-December
Area of Mining - LW Bogdanka CG
Financial data of LW Bogdanka CG forthe period of January - December 2016
Parent - Lubelski Węgiel Bogdanka SA
Production assortment: fine coal (ca. 99%), pea coal, nut coal
Key customers: commercial and industrial power industry
2016 drivers of generated EBITDA:
(+)34.3% EBITDA profitability and 13.5% EBIT profitability
(+) higher production and sales of coal, including commencement of export sales (Ukraine)
(+) lower individual cost of mining
(+) higher quantitative sales of coal at lower selling price
Area of Other activity
| [PLN ‘000] | 2015 | 2016 | Change | Change % | Q4 2015 | Q4 2016 | Change | Change % |
|---|---|---|---|---|---|---|---|---|
| Sales revenue | 549 156 | 533 901 | -15 255 | -2.8% | 162 306 | 138 912 | -23 394 | -14.4% |
| EBIT | -341 | -747 | -406 | -119.1% | -16 178 | -13 198 | 2 980 | 18.4% |
| Amortisation / depreciation | 19 593 | 28 260 | 8 667 | 44.2% | 6 307 | 8 332 | 2 025 | 32.1% |
| EBITDA | 19 252 | 27 513 | 8 261 | 42.9% | -9 871 | -4 866 | 5 005 | 50.7% |
| CAPEX | 93 846 | 108 496 | 14 650 | 15.6% | 49 191 | 54 529 | 5 338 | 10.9% |
| Share of revenue from sales in the segment in the sales revenue of the Group | 4% | 3% | -1 p.p. | 4% | 3% | -1 p.p. |
The area of the Other activity includes companies from three areas
- support for the other Group companies:
Enea Centrum sp. z o.o. - being the Shared Service Centre in the Group within accounting, staff, teleinformation, customer service
Enea Logistyka sp. z o.o. - the company specialising in the logistics, warehousing, supply operations
- supplementary operations:
Enea Oświetlenie sp. z o.o. - the company specialising in lighting the interior and exterior of buildings; designs, constructs street lighting, illumination of urban areas, lighting monumental buildings and public utility objects, and also rendering construction services and comprehensive servicing of photovoltaic power plants
- other operations:
The Group conducts restructuring activities whose objective is keeping in the structure only those companies from the basic value chain and companies supporting and supplementing them.
These group of companies included Szpital Uzdrowiskowy ENERGETYK, which was sold on 2 December 2016.
