The financial and operating results of PGE Polish Energy Group for the third quarter of 2024 are steady and consistent with previous estimates, allowing the company to maintain its course for large-scale investments transforming Polish energy, according to the company. One of the flagship projects is the construction of the Baltica Offshore Wind Farm with a total capacity of approximately 2.5 GW. A decision on the first stage of this project, Baltica 2, will be taken in the coming days.
“Our results for the third quarter of 2024 were quite predictable, nothing special happened. Even EBITDA compared to the same quarter the previous year was almost identical, down to 1 million PLN. So the results are stable, predictable, and very high at the same time – 2.5 billion PLN of EBITDA on a quarterly basis at the level of the consolidated result is a significant and satisfying financial result, which allows us to implement current and future investment plans,” Piotr Sudoł, Director of the Financial Division of PGE Polish Energy Group, told the Newseria agency.
The reported EBITDA profit of the Group amounted to over 2.5 billion PLN in this period, a result very similar to the same period last year. The net profit for the shareholders of the parent company was 728 million PLN (compared to 953 million PLN in the third quarter of the previous year, a decrease of 24% year on year), while the level of economic net debt of the PGE Group for the first nine months of this year (taking into account future payments for CO2 emission allowances) amounted to slightly over 19 million PLN, which means a decrease of 2.62 million PLN compared to 2023.
The report also shows that renewable energy is achieving increasingly better results – EBITDA of the Renewable Energy segment in the third quarter of this year amounted to 381 million PLN (compared to 167 million PLN a year ago), and Gas Energy achieved a positive result for the first time at the level of 79 million PLN (compared to a loss of 4 million PLN a year ago).
“For the first time in our financial and operational results, we can see the positive impact of the newly opened PGE Gryfino Dolna Odra Power Plant, which has become an important source of energy in Poland and a tool to stabilise the National Power System since its launch,” said Dariusz Marzec, CEO of PGE Polish Energy Group, quoted in a statement.
The PGE Gryfino Dolna Odra, commissioned in October 2024, is the largest gas-fired power plant in Poland and one of the most modern in Europe. The unit with a gross capacity of 1366 MW, located in West Pomerania, will supply the network with 1.4 GW, covering approx. 5% of the national demand for electricity, providing deliveries for approximately 3 million households. The new power plant has a 17-year contract in the capacity market, applicable from 2024.
“At the other end of Poland, in Rybnik, Silesia, we are already in an advanced stage of “coming out of a hole in the ground” for a similar installation. It will be one block, almost 900 MW and again the largest unit of this type in the country,” announces Piotr Sudoł.
The gas-steam block in Rybnik with an electrical capacity of 882.9 MW will replace four decommissioned coal-fired blocks with a total capacity of 900 MW in the existing Rybnik Power Plant and will meet strict environmental standards resulting from BAT conclusions. Dust and sulfur dioxide emissions will be practically reduced to zero. The new block is expected to be one of the largest and most efficient in Poland and Europe. Its handover for exploitation is planned for the end of 2026. Meanwhile, at the end of 2022, the gas-steam block in Rybnik obtained a 17-year contract in the main capacity market auction, which will start to apply from 2027.
According to the PGE Group’s report, in the third quarter of this year, its total investment outlays amounted to 2.6 billion PLN compared to 2.7 billion PLN in the same period the previous year. The company stated that it consistently adheres to the chosen strategy, focusing on large-scale investments transforming Polish energy. One of these flagship projects is the construction of the Baltica 2+3 Offshore Wind Farm with a total capacity of about 2.5 GW, implemented in two stages. Next in line to join the portfolio is Baltica 1 with a capacity of about 0.9 GW. Thanks to obtaining new areas for development in the Baltic Sea, PGE will be able to build additional offshore wind farms by 2040 – in total, this is to be over 7 GW of new production capacities in offshore technology.
“PGE is focused on the development of renewable energy, especially in the marine energy segment. We are about to make the final investment decision in the Baltica 2 project with a capacity of 1.5 GW – it should be taken literally within days. This is a total of 30 billion PLN of investment outlay, divided by two together with our partner, the Danish company Ørsted. We are just completing financing in the project finance formula at the level of about 11 billion PLN and own contribution amounting to approx. 4 billion PLN, which in principle will be financed from the National Recovery Plan, through BGK,” explains the Director of the Financial Division of PGE.
This means that the companies already have all the necessary permits and administrative consents, as well as a complete supply chain of components and services.
