Premier Energy Group, a key player in the energy market in Southeast Europe, listed on the Main Market of the Bucharest Stock Exchange, reports EUR 512.4 million in revenues in the first six months of 2024, a 10% year-on-year (YoY) increase, with normalized revenue standing at EUR 534.8 million, a 21% YoY increase. The normalized EBITDA saw a 3% increase to EUR 53.2 million (e.n.-normalized revenues and profits represent seasonally adjusted figures, excluding one-off transactions outside the company’s core business, non-recurring and excluding the effects of one-off events).
“In the first half of 2024, Premier Energy achieved robust growth across all divisions, despite the industry’s challenges. Both our electricity and natural gas supply volumes saw significant double-digit increases. This growth was driven by strategic acquisitions, such as CEZ Vanzare and an 18 MW wind park but also by organic expansion, including in our natural gas segment, where we increased our distribution footprint, supplied volumes and the number of customers. We delivered on all key performance indicators within our control. Our diversified, vertically integrated business model has proven to be a successful strategy in this complex environment. As part of this ongoing execution, we added 80 MW of wind capacity and 5 MW of solar capacity after June 30th, keeping us on track to reach our strategic electricity generation targets,” said Jose Garza, CEO of Premier Energy Group.
In terms of operational highlights, the owned renewable energy sources (RES) production registered a 7% increase, driven primarily by newly acquired and developed generation assets. This growth was tempered by less favorable wind conditions in Romania. The Group also recorded a 48% increase in electricity supplied and a 26% growth in natural gas supplied, reflecting on the expansion of its energy supply capabilities. The number of customers served by the natural gas distribution network grew by 11%, further strengthening the Group’s market position. Additionally, with the acquisition of CEZ Vanzare, renamed to Premier Energy Furnizare, the Company added 1.3 million supply customers to its growing client portfolio. The integration of these new customers is ongoing and on schedule. Operations in Moldova performed as expected on a normalized basis, contributing positively to the overall financial results.
“Despite the complex and volatile energy market in the first half of 2024, Premier Energy Group achieved 21% growth in normalized revenue, reaching EUR 534.8 million and a stable EBITDA evolution on a normalized basis. This performance reflects the resilience of our vertically integrated and diversified model of operations. While unsustainably high electricity imbalance costs and lower market conditions impacted some of our profitability, we navigated the first half of the year well and have a strong financial position with approximately EUR 109 million in net working capital and cash balance, ensuring that we are well-positioned to continue driving growth and effectively executing on our stated strategy,” added Petr Stohr, CFO of Premier Energy Group.
The revenues from the renewable segment in Romania saw a 13% decline, to EUR 87.4 million. This segment was impacted by lower overall electricity prices, the introduction of the new solidarity tax on electricity production plants from April 2024, and the reduced wind production in Romania. The newly acquired Romania Energy Supply segment generated EUR 78.6 million of revenues during its first 3 months of ownership by the Group since its April closing. The revenue from the natural gas distribution and supply business increased by 20% during the first half of the year. The electricity distribution and supply business in the Republic of Moldova saw a 13% YoY decline on an IFRS basis but was essentially flat on a normalized basis at approximately the EUR 200 million level for the six-month period.
The normalized EBITDA for the six months amounted to EUR 53.2 million for 1H 2024, versus EUR 51.4 million registered in 1H 2023. The normalization includes the value of tariff deviations in the Republic of Moldova in the total amount of EUR 17.6 million, versus an outperformance, and hence a negative adjustment, of EUR 36.2 million in 1H 2023, and the impact of lower tariffs in energy supplied but not billed in Moldova in the amount of EUR 4.8 million (vs positive EUR 12.7 million in 1H 2023).
The profit before tax amounted to EUR 23.2 million for 1H 2024, registering a 64% decrease, with profit after tax amounting to EUR 19.9 million, a 60% YoY decline. The normalized net profit, adjusting for the after-tax tariff and change in tariffs in energy supplied but unbilled impacts, amounted to EUR 39.8 million, a 48% YoY normalized increase.
Premier Energy Group maintained a highly liquid financial position, with approximately EUR 109 million in net working capital and cash balance as of the end of the first half of 2024. This strong liquidity underpins the Group’s ability to navigate market challenges effectively and supports ongoing investments in growth initiatives.
