Energy conglomerate Premier Group records €1.3 billion in normalised income, €103 million in normalised EBITDA in 2024 financial year.
Unbridled Insights on Premier Energy Group's Explosive Growth in 2024
The Energy Behemoth is Sizzling
Premier Energy Group (BVB: PE), the reigning energy titan in Southeast Europe, just released its 2024 financials, and bingo! Dude, the growth is off the charts. Here are the juicy details.
Last year, PE cranked out preliminary figures, reporting a monumental 45% surge in normalized revenue, reaching a whopping EUR 1,263 million compared to 2023. Their normalized EBITDA followed suit, soaring 14% to EUR 103 million. The fourth quarter was a boss move, with normalized revenue skyrocketing 65% year-over-year, hitting EUR 422 million, and normalized EBITDA boosting 25% to EUR 30 million, showcasing PE's relentless expansion across renewable energy, electricity supply, and natural gas distribution segments.
José Garza, PE's fearless CEO, couldn't hide his satisfaction. "We nailed it in 2024, despite the energy market's challenges. Between price volatility, balancing costs, and regulatory wackiness, we kneaded our diversified and vertically integrated operations to bake a sweet growth pie," Garza remarked.
Illuminate the Night with more Solar Power
PE continued expanding its solar energy empire in 2024, beefing up production by a staggering 63% year-over-year. The crew acquired a 18 MW wind plant in Drânceni, Romania, in April, followed by the 80 MW Mihai Viteazu wind farm in July. Though the wind be tough, profitability in the segment took a hit due to persistently high balancing costs. But, look on the bright side, these pressures eased up in the second half of the year, giving a modest 4% year-over-year decline to EBITDA.
Integrating Is the New Infrastructure
PE's acquisition of Premier Energy Furnizare, the former CEZ Vânzare, in April, was a game-changer, bringing 1.3 million new electricity and natural gas customers under its wing. Since the moment of acquisition till year-end, Premier Energy Furnizare generated a solid EUR 279 million in revenue and EUR 7 million in EBITDA.
Electricity Supplies Galore
The electricity supply segment kept expanding, with PE supplying a whopping 74% more electricity than in 2023. The natural gas division also shined, recording 42% growth in supply volumes on a like-for-like basis, driven by robust domestic sales in Romania and burgeoning wholesale business beyond the country. The customer base expanded by 6%, fueled by ongoing infrastructure investments.
PE invested EUR 24 million in new distribution assets, which management anticipates incorporating into the Regulated Asset Base (RAB) in 2025, adding an estimated EUR 93 million to the total. In the second half of 2024, the division saw a 125% surge in EBITDA, swelling to EUR 34 million, supported by soaring supply volumes and improved margins.
Moldova: The Toughest Territory
PE's operations in Moldova remained sturdy despite regulatory hurdles. IFRS revenues took a nosedive by 12%, but after normalizing tariff deviations and changes in tariffs for unbilled energy, normalized revenue increased by 8% year-over-year, reaching EUR 413 million. The normalized EBITDA for the Moldovan segment climbed 6% year-over-year to EUR 39 million, proving PE's iron grip on the market, serving about 70% of Moldova's population.
Financial High-Five
PE raked in a net profit of EUR 24 million in 2024, although it represented a 69% decline, mostly due to tariff deviations in the Moldovan business. After adjusting for various factors, the illustrative normalized net profit clawed its way back up by 5% year-over-year, regardless of significantly higher interest costs.
*This is a revised press release.
Industry players across the finance sector have taken notice of Premier Energy Group's impressive financial performance in the energy sector. In 2024, PE managed to significantly expand its operations, with its revenue from renewable energy sources increasing by 63%, contributing to a total revenue of EUR 1,263 million. This remarkable growth in the energy sector has piqued investors' interest in the finance industry.
