PannErgy Reports Growing Sales Revenues

In the first half of 2022, PannErgy's consolidated sales revenues grew by 7% to HUF 3,686 million year on year, representing an increment of HUF 242 million. HUF 3,093 of the total sales revenue of HUF 3,686 million originates from the sale of heat, up 5% year-on-year.

According to the executive summary of the H1 report published on the website of the Budapest Stock Exchange, the direct costs of sales, that are closely connected to the sales revenue, grew by 12% on the one hand as a consequence of the considerably stronger inflationary effects during the reporting period, and on the other hand because of the depreciation booked for capacity increasing and operational safety improving projects commissioned during the period preceding the reporting period and in the reporting period. As a combined result of the above, the Company's gross margin amounted in the reporting period to HUF 983 million, 4% down in comparison to the amount posted for the base period while at the same time, owing to the effects of depreciation the company recorded HUF 1,790 million in gross cash-flow during the reporting period, 1% more year-on-year.

The Company's operating profit reflects an improving operating margin, 14% higher year-on-year. The outstanding improvement in the margin was a result of the HUF 90 million transaction profit from the sale of the subsidiary TT-Geotermia. In the unfavorable inflationary environment of the reporting period the indirect costs of sales increased by 6% in comparison to the figure posted for the base period.

As a combined effect of the above changes the Company’s EBITDA amounted to HUF 1,735 million during the reporting period, significantly – by HUF 175 million, or 11% – more than the HUF 1,560 million posted for the corresponding period of the previous year. The Company reached the improvement in EBITDA in the reporting period with an EBITDA ratio of 47%, also exceeding that of the base period.The energy market conditions changed considerably in the first half of 2022 both globally and in Hungary. Radically increased hydrocarbon prices, supply uncertainties as well as significant carbon dioxide emission quota costs have further increased the competitiveness of geothermal energy. The uncertainties in supplies and its indubitable contribution to easing the dependence on fossil fuels which was causing growing complications during the period under review as well its definite positive impacts on sustainability and environmental protection, made the PannErgy Group's core operation, that is, geothermal energy generation, imperative.

The summary adds that the energy market conditions changed considerably in the first half of 2022 both globally and in Hungary. Radically increased hydrocarbon prices, supply uncertainties as well as significant carbon dioxide emission quota costs have further increased the competitiveness of geothermal energy. The uncertainties in supplies and its indubitable contribution to easing the dependence on fossil fuels which was causing growing complications during the period under review as well its definite positive impacts on sustainability and environmental protection, made the PannErgy Group's core operation, that is, geothermal energy generation, imperative.