PannErgy Production Report Q2 2025

PannErgy Plc. publishes a production report on a quarterly basis, presenting its production and utilisation of green energy. In its report, in addition to other useful information, PannErgy presents the green heat sales figures of its key geothermal energy production systems in the reporting period.

In its extraordinary publication of October 1, 2024, the Company informed the public that the regulated district heating producer tariffs to be applied from October 1, 2024 – also applicable to subsidiaries subject to PannErgy’s district heating price regulation – were announced by the Minister of Energy.

In contrast to previous practice, the Regulation set district heating producer tariffs not only in the form of a sales heat tariff for the heat volume sold, but also in the form of a split heat supply tariff for the heat volume sold, and a monthly supplier base tariff, i.e. using a so-called two-element pricing system:

With the introduction of the two-element pricing referred to above,

• the sustainable profitability of the Company – derived from the regulatory pricing – becomes more predictable;
• the impact on the Company’s profitability due to changes in the demand for heat affected by the regulatory pricing (e.g. the weather) is minimised;
• in the case of lower heat supply tariff (HUF/GJ) and higher supplier base tariff in the fourth quarter of the year compared to other quarters, the weight and share of the first half of the year in the operating profit generation capacity decreases in the financial year, while it increases in the second half of the year.

The weather in the period under review was colder compared to the corresponding period in 2024, mainly due to the weather in May, while the Group-level geothermal heat sales potential was similar to the average of recent years.

A comparison of the 2025 Q2 heat sales figures with the average values of the corresponding period in historical years indicates that PannErgy achieved average heat sales in the period under review, while exceeding both the heat sales of the base period and the target for the period. PannErgy surpassed the quarterly target by approximately 8.3% and the base period sales by approximately 10.9%.

In view of the information presented in this production report, PannErgy maintains the previously published (January 15, 2025) consolidated EBITDA target range of HUF 4,000–4,150 million for the 2024 business year.

The Geothermal System of Miskolc sold a total of 141,115 GJ of thermal energy in 2025 Q2, exceeding the heat sales achieved in the same period in 2024 significantly, by 21.0%. The primary reasons for the increase are the stable heat input from the new (third) production well launched at the end of 2024, and cooler weather in May.