Enea’s Q1 Core Profit Falls 20% Amid Weak Mining and Retail Margins
Financial Performance and Segment Analysis for Q1
May 8 (Reuters) - Polish utility Enea reported a 20% drop in its first-quarter core profit late on Thursday, as a high year-ago comparison in its mining segment and weaker retail trading margins offset gains in power generation.
The results come at a time when Enea is ramping up its 9 billion zloty ($2.5 billion) capital spending plan that includes a 1,386 MW battery storage pipeline. It is part of a roughly 108 billion zloty programme until 2035, aimed at shifting the coal-heavy group towards renewables.
Mining Segment Performance
• The group's mining segment, which supplies coal for power generation, saw its core profit fall to 26 million zlotys from 389 million a year ago
Factors Affecting Mining Segment
• The drop was mainly due to a nearly 145-million-zloty one-off insurance payout that was recorded in the same quarter last year, alongside lower coal sales volumes and prices
Trading Segment Results
• Core profit in the trading segment, which sells electricity to retail and wholesale customers, fell almost 67% to 71 million zlotys, as retail margins narrowed
Generation Segment Overview
• The generation segment, which operates conventional and renewable power plants, saw an almost 16% core profit rise to 637 million zlotys
Drivers of Generation Segment Growth
• It was helped by better profitability at conventional power plants, higher capacity market revenue, improved wind power output and stronger heat margins
Distribution Business Stability
• The distribution business, which operates electricity grids, held broadly steady at 741 million zlotys
Overall Net Profit
• The group's net profit fell more than 11% to 929 million zlotys
Currency Exchange Rate
($1 = 3.6033 zlotys)
Reporting Credits
(Reporting by Rafal Nowak in Gdansk, editing by Milla Nissi-Prussak)
