In the course of twelve months ended on 31 December 2021, the adjusted EBITDA result of the Polenergia Group (“Group”) was PLN 361.2 million and was higher by PLN 104.4 million as compared to the result in the analogous period of the previous year. This was mainly caused by an increase in the result of gas and clean fuel segment (by PLN 117.0 million) related to the optimisation of the Nowa Sarzyna Combined Heat and Power Plant (“NSCHPP”). The increase of the EBITDA result was partially compensated by a lower result of onshore wind farms (a drop by PLN 9.8 million) caused by a lower level of production resulting from worse wind conditions as compared to 2020.
In the course of twelve months of 2021, the Group’s adjusted net profit was PLN 187.2 million, which is an increase as compared to the result in an analogous period of the previous year by PLN 76.2 million.
The adjusted EBITDA result of the Group in the fourth quarter of 2021 was PLN 78.9 million and was higher by PLN 22.9 million in comparison to the result in the analogous period of the previous year. This was mainly caused by an increase in the result of gas and clean fuel segment (increase by PLN 27.8 million) following from a higher result on sale of heat and system services (forced generation) and increase in the result of onshore wind farm segment (by PLN 19.3 million) as an effect of higher windiness and production from the Szymankowo wind farm that was commissioned as well as production in the start-up period of the constructed Dębsk wind farm. The factors above were partially compensated by a lower result of the segment of trading and sale (a drop by PLN 22.5 million) caused by higher costs of the profile related to the servicing of the RES assets and a lower result on sale of energy to strategic clients in relation to the valuation of forward transactions.
In the fourth quarter of 2021, the Group’s adjusted net profit was PLN 38.4 million, which is an increase as compared to the result in an analogous period of the previous year by PLN 13.3 million.
A significant factor affecting the results in 2021 and in the 4th quarter of 2021 was the process of “reversing” the forward transactions that hedged production and sale of electric energy in the CHPP in the 3rd and the 4th quarter of 2021, in 2022 and partially in 2023 as part of the process of optimising the operation of this plant. Changes in the level of margin resulting from changes in prices of electric energy, gas and CO2 emission certificates related to the production of electric energy in the CHPP, i.e. the so-called Clean Spark Spread (“CSS”) allowed for making a decision on limitation of the planned production and realisation of margin on closing the items on the futures market for the above-listed periods.
The valuation of relevant financial instruments related to the transactions above in line with IFRS 9 means recognition in the result of the 4th quarter of 2021 on the Group level: (i) the result on the forecast production of energy in the NSCHPP for the aforementioned future periods to which the concluded transactions refer, i.e. PLN 1.4 million (cumulatively: PLN 11.5 million) ˗ this is a time shift, and (ii) impact of additional optimisation and changes of the CSS in the amount of PLN 6.2 million (cumulatively: 34.8 million); the impact of valuation of these transactions on the EBITDA result in the fourth quarter of 2021 was presented in the segment of trading and sale in the amount of PLN 1.3 million (cumulatively: PLN 11.1 million) and in the segment of gas and clean fuels in the amount of PLN 6.3 million (cumulatively: 35.2 million);
The effect of performance of the transactions pertaining to the 4th quarter of 2021, whose valuation was recognised in the financial statement for the three quarters of 2021 in the amount of PLN 25.8 million was recognised in the earned result reducing the value of valuation as of 31 December 2021.
The presented values are estimates and may change. The final results will be presented in detail in the consolidated annual report of the Polenergia Capital Group for 2021; its’ publication was scheduled for 7 April 2022.
Legal basis: Art. 17(1) of Regulation of the European Parliament and Council (EU) No. 596/2014 on market abuse and repealing Directive 2003/6/EC of the European Parliament and Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC (Journal of Laws of the European Union L of 2014, No. 173, p. 1).