Solid performance and new business segmentation - Energa Group summarizes Q1 2025

Energa Group opened 2025 with strong financial results. In the first quarter, most key financial indicators increased year-on-year. EBITDA rose by 7% to PLN 1.2 billion, and net profit improved by 12%, reaching PLN 0.5 billion. The Group also began operating under a new structure based on dedicated business lines.

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Today   |   09:23   |   Source: Gazeta Morska   |   Prepared by: Kamil Kusier   |   Print

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During the same period, the Group's revenues were slightly lower – by 5% compared to Q1 2024.

– The slight drop in total revenues was caused by the high base effect and a decrease of approximately 81% in compensation from the Price Difference Payment Fund – explained Magdalena Kamińska, Vice President of the Management Board of Energa SA. – Excluding these funds, the Group's remaining revenues rose by 7% year-on-year, reaching PLN 5.8 billion. The clear growth in EBITDA and net profit confirms Energa Group's solid performance and provides a strong foundation for further business development and strengthening our position as a key player in Poland’s ongoing energy transition.

Operating profit (EBIT) increased by 5% compared to the same period last year, totaling PLN 0.8 billion.

In Q1 2025, the Group produced 0.9 TWh of electricity (around 42% from renewables), transmitted 6.2 TWh, and delivered 4.7 TWh in retail sales.

New business segmentation

To better align with the ongoing energy transition, Energa Group began operating under a new business line structure as of Q1 2025.

– The new segmentation reflects the strategic directions we are pursuing. One of the pillars of our growth is systematically increasing our installed capacity in renewables. This is why we have created a dedicated business line for renewable energy sources and related activities. We have clearly separated them from conventional generation and district heating, which require a decarbonization process – emphasized Sławomir Staszak, President of the Management Board of Energa SA.

Companies previously grouped under the Generation Business Line have now been reorganized into three new lines: New Energy, Conventional Energy, and District Heating. The New Energy line includes all renewable assets and related activities, such as energy storage. The Conventional Energy line covers coal and low-emission gas-based generation. District Heating includes all combined heat and power plants within the Group.

The new Retail Business Line includes only Energa Obrót. Other companies that had operated under the previous Sales Line – including Energa Oświetlenie and Enspirion – now form the Other Activities line, together with Energa Logistyka, Energa IT & Technologies, and Energa Finance AB based in Stockholm. The Distribution Business Line is the only one to remain unchanged.

Distribution remains key contributor

The Distribution line was once again the top contributor to Energa Group’s financial results in Q1 2025, accounting for 83% of consolidated EBITDA. This was mainly due to lower costs of purchasing electricity for grid losses.

The New Energy line had the second-largest impact on financial performance, despite a drop in EBITDA caused by lower production in hydro and wind power plants, which was driven by weather and hydrological conditions. However, not all renewables saw declines – the Group's photovoltaic installations produced over five times more energy than in Q1 2024.

Conventional Energy reported a clear rise in production and financial results. This was due to more frequent operation of the Ostrołęka B power plant under system operator demand, favorable electricity market prices, and the outcomes of contract renegotiations and restructuring related to coal purchases.

– The first quarter of this year demonstrated how important a diversified and balanced generation mix is – said Piotr Szymanek, Vice President of the Management Board of Energa SA. – While we continue to expand our renewables, we also invest in low-emission gas sources. The intermittent nature of renewables means that we occasionally need to rely on more controllable sources to meet demand.

This atypical situation – increased production from conventional assets alongside a decrease from renewables – illustrates the need for investments in balancing sources. Energa Group continues to pursue these investments in both renewables and low-emission gas assets.

High investment activity

Capital expenditures in Q1 2025 totaled PLN 746 million, down only 2% year-on-year due to the schedule of various ongoing projects. The Distribution line accounted for the largest share – PLN 507 million (68%). During the period, this line built or modernized 736 km of distribution lines, connected 12,000 new consumers, and enabled 303 MW of new renewable capacity.

Energa Operator, the Distribution line’s leading company, secured over PLN 7.6 billion in funding from the National Recovery and Resilience Plan (KPO). This will support its long-term investment program worth approx. PLN 40 billion through 2035. The plan includes building and modernizing around 21,000 km of lines, facilitating the connection of approx. 9 GW of new renewables and 350,000 new customers.

In the New Energy line, which received 15% of total CAPEX (PLN 113 million), Energa continued to invest in photovoltaic projects, including the near-completion of the Mitra solar farm with a capacity of approx. 65 MW. The District Heating line advanced its investment program in Elbląg and Kalisz. In Kalisz, it completed a 50 MWt reserve-peak boiler plant, commissioned in early April. Investments in this line totaled PLN 17 million in Q1.

The Conventional Energy line received 12% of investments, covering the ongoing construction of gas-steam units in Grudziądz and Ostrołęka, as well as the modernization of boiler no. 3 at Ostrołęka B. The latter will reduce emissions by increasing biomass co-firing from 30% to 50% of energy input.

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