The financial results for 2022 were affected by the unprecedented and exceptionally dynamic situation on the energy and fuel markets, especially in terms of the availability of coal and its rising prices, said Krzysztof Surma, Vice-President of Tauron for Finance. The company announced that Tauron’s net loss for 2022 amounted to PLN 134 million. The value of EBITDA – the operating result increased by depreciation and write-downs for non-financial assets – reached PLN 4.016 billion.
In 2022, the net loss amounted to PLN 134 million, compared to PLN 385 million profit in 2021. EBITDA amounted to PLN 4.016 billion; a year earlier it was PLN 4.152 billion (a decrease of 3%). Sales revenues reached PLN 36.3 billion compared to PLN 25.2 billion in 2021 (an increase of 46%).
Renewable energy sources
“When assessing the financial results achieved by the Tauron Group in 2022, one should take into account (…) the unfavorable market environment. Dynamic growth electricity prices, gas and coal were reflected in the sales revenues from continuing operations, which amounted to PLN 36.3 billion, i.e. over 40 percent. more than in 2021,” Paweł Szczeszek, the president of Tauron, indicated in a letter to shareholders. “On the other hand, we were dealing with a parallel significant increase in operating costs. Despite this, the EBITDA of the Tauron Group in 2022 remained at a similar level compared to 2021 and reached PLN 4 billion – added Szczeszek in the letter. for the company was to adopt a new strategy, which assumes increasing the installed capacity several times renewable energy sources and an 80% reduction in emissions. “Last year, as part of Tauron’s Green Turn, we commissioned two wind farms and one photovoltaic farm and purchased five new renewable energy projects with a capacity of approx. 200 MW, ready for construction” – noted Szczeszek. “At the same time, the process of separating coal assets was underway. In December 2022, we completed the process of selling Tauron Wydobycie shares to the State Treasury. Works related to the separating of Tauron Group’s coal-based generation assets to the National Energy Security Agency are also advanced. business profile of the group and will enable us to accelerate our transformation towards climate neutrality” – added the president.
“Unprecedented and exceptionally dynamic situation on the energy and fuel markets”
Tauron’s vice-president for finance, Krzysztof Surma, stated in the press release that the financial results for 2022 were affected by the unprecedented and exceptionally dynamic situation on the energy and fuel markets, especially in terms of the availability of coal and its rising prices. This translated into increases in wholesale electricity prices and had a negative impact on the profitability of the Generation segment. “On the one hand, this resulted in an increase in sales revenues, and on the other – in the costs of operations. We also had to face additional costs resulting from the shutdown of the 910 MW unit in Jaworzno. Nevertheless, we generated an EBITDA result at a level similar to 2021,” said Surma . “The financial situation of the Tauron Group is stable, which was confirmed by the Fitch Ratings rating agency, which maintained the long-term rating of the TAURON Group at BBB- with a stable outlook,” noted the vice-president. As indicated in the press release, the decrease in the net financial result “is primarily the result of the recognition of an impairment loss for the revaluation of Tauron Wydobycia assets to fair value in the amount of PLN 460 million, an increase in interest expenses caused by a higher level of use of external financing and an increase in base rates, as well as a lower valuation of currency derivatives.
Tauron Group – details
The 46% increase in sales revenues was driven mainly by higher revenues from the sale of electricity and gas and an increase in revenues from the sale of emission allowances. On the other hand, the group recorded a 50% increase in the cost of goods, products, materials and services sold, which was mainly due to the increase in the cost of fuels, energy and CO2 emission allowances. The Distribution segment had the largest share in the group’s EBITDA, accounting for 73 percent. last year’s value (Sales and RES segments provided 15% and 12%, respectively). The EBITDA margin on continued and discontinued operations was 10.8%, i.e. 5.4 pp less than in 2021, which was the result of a significant increase in the group’s sales revenue, with a similar EBITDA result. The net debt/EBITDA ratio at the end of December 2022 was 2.9x and was higher than 2.4x at the end of 2021. Heat production in 2022 amounted to 10.58 petajoules and was lower by 12%. compared to 12 PJ in 2021, which resulted from lower customer demand due to higher outdoor temperature. The production of commercial coal in 2022 amounted to 5 million tonnes and was 3% higher than in 2022. lower than in 2021, and coal sales were lower by 10%. and amounted to 4.9 million tons. The decrease in the volume of coal production was caused by difficulties of a geological and mining nature at Zakład Górniczy Sobieski. At the same time, production at ZG Janina and ZG Brzeszcze increased. In 2022, 50 percent. of coal supplies for the production of electricity and heat by Tauron was satisfied with hard coal from its own mining plants (at the end of 2022, the concern sold 100% of shares in Tauron Wydobycie to the State Treasury; from January 1, 2023, the group no longer conducts activities related to coal mining stone).
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