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In 2020, Ignitis Gamyba intensively increased production volume and raised key financial indicators

Company News

 In 2020, the combined cycle unit (hereinafter “the CCU”) operated by Ignitis gamyba in the Elektrėnai Complex and the Kruonis Pumped Storage Power Plant (hereinafter “Kruonis PSHP”) produced the most electricity in the entire history of these facilities, and the Company's main financial indicators also increased significantly.

Last year, 2.145 GWh of electricity was generated at the power plants managed by the Company, i.e. 157.9 percent more than in 2019. Over the last decade, better production results were only in 2012, when the amount of electricity produced in the Company's power plants exceeded 2.200 GWh. It is also worth noting that, compared to 2019, the CCU's production results increased almost 62 times, to 1,180 GWh, and Kruonis PSHP produced even a third more electricity - 717 GWh. These figures are the best in the history of these power plants.

During the year, the main financial indicators of the Company also consistently improved, and in the end of 2020 it recorded a significant growth: the Company’s revenue from contracts with customers increased to EUR 172.4 million, which is as much as 27.7% more than 2019; Adjusted EBITDA increased by 31.2% to EUR 70.9 million.

“Despite the economic and social challenges, 2020 was a truly successful year. We can be proud of the results achieved by Ignitis Gamyba, which proves that the Company is purposefully striving to meet the strategic energy needs of the country. As Lithuania prepares for the synchronization its electricity system with the continental European grids, we are contributing to the implementation of this important energy project by ensuring reliable local electricity production and increasing its volumes“, says Rimgaudas Kalvaitis, chairman of the board and CEO at Ignitis Gamyba.

In order to contribute to the implementation of energy projects of strategic importance for Lithuania, it is necessary to assess all available electricity generation and ancillary services’ capacities, therefore, one of the most important projects implemented by the Company in 2020 was the successful testing of one of the two installed energy units at the Vilnius Third Combined Heat and Power Plant (TE 3) at the beginning of November. Two more significant tests were carried out in the summer at the Elektrėnai Complex, when, for the first time in the operation history of Unit 7 and 8, a successful activation tests were carried out within 8 hours. These tests have shown that the said units are compliant with the network code requirements and will be eligible for use in energy security solutions beyond 2025.

Ignitis Gamyba announced several exceptional news to share in the area of green generation. In May, it was opened 1 MW solar power plant in Obeniai, which became the first remote solar park in the country and marked the launch of the “Ignitis saulės parkai” platform, and therefore its owners (almost 300 remote generating consumers), have already benefited from the electricity generated by this solar power plant. The Company has fulfilled its promises to customers and partners by installing a three-time larger solar power plant in Obeniai in September. By expanding this solar park to 4 MW power, so far Ignitis Gamyba has developed the largest solar park not only in Lithuania, but also in the Baltic states.

“We are proud for implementing this project and we are also proud to be the first to give the opportunity to all Lithuanian residents to generate electricity for their own apartments or houses in remote solar power plants. Moreover, this autumn we were still the only ones who developed “Ignitis saulės parkai” platform and whose solar power plants are installed, produce electricity and provide benefit to customers”, says Mr. Kalvaitis.

A project for the dismantling of two disused chimneys of Elektrėnai Complex is also successfully underway, symbolising the end of the era of polluting generation of electricity when fuel oil was used. Intensive preparatory work took place in 2020 when dismantling the inner layer of the chimneys, and in 2021 it is planned to completely dismantle both the middle 250 metres-high chimney and the smaller chimney which is 150 m high.

At the end of the year, Ignitis Gamyba won the auction of the tertiary active power reserve, announced by the transmission system operator Litgrid and signed a contract to provide this service. Under this agreement, the Company will provide this important service in 2021 for ensuring power grid reliability in units 7 and 8 (222 MW and 260 MW, respectively) within the overall scope of 482 MW.

Ignitis gamyba also signed the agreement with Litgrid for provision of services ensuring isolated operation of the power system in 2021. These services will be provided by the CCU (371 MW) and Unit 7 (38 MW).

Key performance indicators of Ignitis Gamyba of 2020*:

  • The revenue from contracts with customers increased by 27.7% and amounted to EUR 172.4 million. The revenue of Ignitis Gamyba increased by 19.9% and amounted to EUR 174.5 million when compared to 2018. This was mainly influenced by higher electricity sales volumes.
  • The adjusted EBITDA** increased by 31.2% and amounted to EUR 70.9 million, compared to 2019 (EUR 54.0 million). Adjusted EBITDA growth has been driven the efficient use and higher production capacity of the Kruonis PSHP and the Elektrėnai Complex, which offset the lower production at the Kaunas HPP and the effect of fuel oil and scrap metal sales in 2019, which improved the results. 
  • In 2020, the company incurred EUR 23.0 million in operational expenses – 6.62% more than in 2019, mainly due to increase of repair and maintenance costs.
  • The Company‘s net profit amounted to EUR 41.8 million – 2.33% less than in the previous year (EUR 42.8 million).
  • During 2019, the Company invested in non-current tangible and intangible assets EUR 1.1 million, compared to EUR 0.8 million in 2019, mainly due to investments in Kaunas HPP and Kruonis PSHP.

* Financial indicators of the Company for the year 2018 have been recalculated. Information about the changes is presented in the Company's interim financial information for the year ended 31 December 2019.

** The Company’s preliminary adjusted EBITDA for 2019 and actual adjusted EBITDA for 2018 are reported after the adjustments made by the management by eliminating the impact of one-off factors, also considering the change in revenue (and, consequently, EBITDA) of the Company's regulated services. These adjustments are made aiming to disclose the results of the Company’s operating activities after the elimination of the impact of non-typical, one-off factors or factors that are not directly related to the current reporting period. All adjustments made by the management are disclosed in the Company’s interim and annual reports.

Attachment:

Annual Report 2020

More information: 

Tadas Markevičius, Public Relations Manager, +370 676 28911, tadas.markevicius@ignitis.lt