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Energa boasted about its good financial results in the first half of the year. It also reported the expansion of the power plant in Ostrołęka was ahead of schedule. The company did not believe additional changes to the green certificate market were necessary.
Energa’s results
In the first half of the year Energa’s revenue was PLN 5.2 bn, which is 5% more than last year. Its net profit was PLN 488 m, up by 34% in comparison to 2016. EBITDA was PLN 1.1 bn and was higher by 53 m.
During a press conference where Daniel Obajtek Enega CEO presented the results, he said that they were “impressive” and that the net profit reached PLN 488 m. The company wants to decrease the number of its subsidiaries by one third, to 22. Some of the companies will be merged with the main firm or other bigger companies. The decision-making process has been made faster and the system has been made more efficient.
Investments
By 2025 Energa will invest PLN 20 billion. The money will be spent on, among others, grid modernization.
“We want to use EU funds so that the investments do not put too much of a burden on the company. The Ostrołęka power plant expansion is at an advanced stage, we are about to choose the contractor. I can say that we are ahead of schedule. The works on the second barrage on the Vistula river are also underway,” the CEO said. Obajtek also added that the investment had to be economically viable.
“We are able to implement this project. We are talking to the environment and maritime management ministries. We want to open the tender in 2018,” Obajtek added.
Innovations
According to the CEO, innovations in the Group were often scattered and detached from the business.
“Science has to go together with business. We created a centralized innovations center at the University of Technology. Each year we will spend PLN 40 m on innovations. The research is about intelligent grids and meters. It is important, especially in the context of electromobility. The Group wants to start researching energy batteries,” he said. He also added that the money will be spent on, among others, start-ups and cooperation with scientific institutions.
“I hope this will translate into what we are actually doing,” he added. The research on the battery is to be related to the development of electromobility. He also stressed the works have been on for two months and will now accelerate. “We believe the research process will take about two years,” he stated. Obajtek also said Energa was a leader of this project.
“By 2022 we want to build chargers by the seaside where there are already eight stations. It would be good if towns that buy electric buses bought power from us,” he added. Letters of intent on this matter have been already signed with the authorities of Tczew and Toruń and soon with Kołobrzeg.
He also added it was a mistake to leave the operation of the IT system in the group. “It was a bad decision, which caused billing problems and an adverse effect on the Group and the turnover,” Obajtek explained. He promised the problem had been solved seven months ago, before the deadline.
Ostrołęka power plant
Obajtek said that the company was not waiting for the Act on the capacity market and was constructing the unit at the Ostrołęka power station regardless of the legislative process. The contractor will be chosen in the first quarter of 2018.
Jacek Kościelniak Energa’s Vice-President talked about investments in PGG (Polish Mining Group) and Plimeks. “We initiated a meeting with PGG at the mine in Bielszowice, where we saw how coal is extracted,” Kościelniak said. When asked whether PGG would meet the extraction target, he said Energa was happy about the business cooperation and the company’s new plan was bigger than the previous one. Kościelniak also reminded that Krzysztof Tchórzewski, the Energy Minister, ensured that the original extraction targets would be met, or maybe even exceeded.
Generation
Kościelniak explained the generation sector performed better despite the persistently low prices of property rights, higher fuel costs and increase of property tax on wind farms. In 1H, the EBITDA was PLN 177 m, which is 9 million more than last year. The 5% increase of EBITDA was mostly caused by the growing revenue from sales of electricity and system services.
“In 1H the segment produced more energy by 14% than last year. This was possible thanks to, among others, the completed the modernization of unit 1 at the Ostrołęka B power plant, which increased the efficiency of electricity production. All generation assets (apart from photovoltaics), including wind farms, produced more energy.”
Renewable energy sources
Jacek Kościelniak reminded that there will be changes to taxing windmills. He also stressed the works on changing the property tax through implementing an amendment to the Renewables act were still on. “We are hoping the changes will impact our results in 2H,” Kościelniak added.
Obajtek said that the legislative process was still ongoing when it comes to the so-called “small” amendment to the Renewables act. The company will comment on its impact on results later on. When asked about the so-called “extensive” amendment to the Renewables act, Jacek Kościelniak said that the Ministry of Energy was still working on it and the company had the right and possibility of participating in consultations.
Energa has over a hundred contracts for the purchase of green certificates and 22 long-term agreements. The President of Energa Obrót Jarosław Dybowski said the company did not believe further changes regarding green certificates were needed.
“Will the amendment to the Renewables act serve as a basis for taking any actions regarding those contracts? We are not planning this. We do not think this forces us to address our contractors with any kind of proposition,” he added.
He also stated that when it comes to the stock exchange obligation, the company was responsible for its liquidity on the exchange, which was its basic principle. Therefore, if the obligation ensures the liquidity then the company would be eager to consider the proposal.
No plans to participate in Poland’s nuclear program
Energa’s representatives stated the company was not planning to take part in constructing Poland’s first nuclear power plant. Obajtek said the company was currently interested in projects, which have already started and was focusing on that. At the end of this year, the Ministry of Energy is to make a final decision on constructing a nuclear power plant.
Update 9 August 2017, 2 pm.
