The Supply Segment’s sales revenue was 16% higher in 2020, as compared to the same period of 2019, mainly due to the higher electricity sales revenue (higher electricity sales price) and the higher fuel sales revenue (higher coal and gas fuel sales volumes).
The Supply Segment’s EBITDA and EBIT were higher in 2020 than in the same period of 2019. The results posted were affected by the following factors:
- electricity (buybacks) – a positive impact on the result is brought about by the result generated on the electricity wholesale trading due to the performance of the buybacks of the volume contracted for the 910 MW unit in Jaworzno and the performance of the electricity buybacks for EC Stalowa Wola,
- electricity volume and prices – a positive impact on the result is mainly due to an increase of retail electricity sales prices (an increase of the tariff and price lists) and the purchase of electricity generated by the 910 MW generating unit commissioned in Jaworzno in November 2020 in accordance with the adopted multi-year purchase agreement by TAURON at a price calculated in accordance with the net transaction margin method,
- property rights prices – a negative impact on the result due to an increase of the prices of the green certificates (PMOZE),
- obligation to retire the property rights – a negative impact on the result is a consequence of an increase of the obligation related to the green certificates (PMOZE) from 18.5% to 19.5%,
- other – the recognized result on the sale of the other market (commercial) products, street lighting, the higher costs of sales and the balance of the other operations.
Supply Segment’s 2019-2020 financial data
Export to Excel| Item (PLN ‘000) | 2019 | 2020 | Dynamics (2020/2019) | Change (2020-2019) |
|---|---|---|---|---|
| Sales revenue | 14,907,937 | 17,249,258 | 116% | 2,341,321 |
| electricity, including: | 9,488,091 | 11,685,519 | 123% | 2,197,428 |
| revenue from retail electricity supply | 7,479,056 | 9,575,392 | 128% | 2,096,336 |
| greenhouse gas emission allowances | 701,607 | 339,632 | 48% | (361,975) |
| fuel | 1,396,300 | 1,754,270 | 126% | 357,970 |
| distribution service (transferred) | 3,117,588 | 3,242,716 | 104% | 125,128 |
| other revenue, including trading services | 204,351 | 227,121 | 111% | 22,770 |
| Compensations | 952,650 | 66,448 | 7% | 886,202 |
| EBIT | 382,185 | 641,648 | 168% | 259,463 |
| Depreciation and write-downs | 46,392 | 41,704 | 90% | (4,688) |
| EBITDA | 428,577 | 683,352 | 159% | 254,775 |
Supply Segment’s 2019-2020 financial data
Supply Segment’s EBITDA along with significant factors affecting the change y/y
Major investments (CAPEX)
The Supply Segment’s total capital expenditures came in at PLN 61 million in 2020, mainly by TAURON Nowe Technologie, for the activities related to the maintenance and expansion of the street lighting in the amount of PLN 43 million and PLN 10 million for the construction of the gas engines.
CURRENT AND FORECAST FINANCIAL AND ASSETS SITUATION
In the Supply Segment, the need to curtail the expansion activities, while focusing on the goal of minimizing the number of customers leaving as well as recovering of the customers lost in the previous years, has to be kept in mind in the coming years, and also the threats (risks) related to the level of the electricity tariffs approved by the ERO. The challenges faced by the Supply Segment subsidiaries include the activities undertaken by the competitors, the growing awareness and expectations of the customers, as well as the growth of the prosumer market. The above factors will have an impact on the increase of the requirements in terms of both, the products offered, as well as the speed and quality of service.
