The Group has announced that Adjusted EBITDA reached EUR 206.5 million. This was mainly driven by the Green Generation segment due to the launch of Pomerania wind farm in Poland and better performance of the operating assets. Green Generation Adjusted EBITDA accounted for almost 60% of the Group’s total result in H1 2022 and green share of electricity generated was 92.3%.
However, the Group suffered a negative impact on Adjusted EBITDA in Customers & Solutions and Flexible Generation segments. In H1 2022, Customers & Solutions Adjusted EBITDA was negative and suffered a loss of EUR 4.7 million. Flexible Generation result decreased two times to EUR 8.2 million.
In addition to that, due to the extreme situation in energy markets, the Group’s net working capital significantly increased by EUR 326.1 compared to 31 December 2021 and reached EUR 812.5 million. It was mainly caused by lower energy prices included in regulated customer tariffs compared to actual market prices (regulatory difference), the suspension of natural gas purchases from Gazprom and its replacement with LNG cargoes since the beginning of April 2022 (causing increase in inventory).
Net working capital increase led to a significantly negative free cash flow of minus EUR 247.2 million. Only small part of additional net working capital was financed by the increased Adjusted EBITDA, majority of it was financed through additional borrowing. Additional bank credit line agreements of around EUR 500 million were secured. This resulted in net debt increase to EUR 1.2 billion.
Since the end of 2021, the Group expanded Green Generation pipeline by around 750 MW to 2.2 GW. This was mainly driven by the accelerated greenfield portfolio development which increased by around 730 MW to 900 MW.
The Group also started the development of the first hybrid solar park in Lithuania (Tauragė solar project) with a capacity of 22 MW while Silesia WF (50 MW) in Poland reached the construction phase, and Moray West offshore wind project (850–900 MW), in which the Group holds a minority stake (5%), should reach final development steps in the coming months.
Subject to approval at the Group’s Extraordinary General Meeting of Shareholders to be held on 29 September 2022, in line with the Dividend Policy, for H1 2022 the Group proposes to distribute a dividend of EUR 0.624 per share, corresponding to EUR 45.2 million.