Bloomberg News

PGE Raises Net as Utility Benefits From Higher Electricity Sales

November 15, 2011

Nov. 14 (Bloomberg) -- PGE SA’s third-quarter profit rose 12 percent as Poland’s largest power utility benefited from bigger electricity consumption and higher prices.

Net income climbed to 837.4 million zloty ($262.5 million) from 747.2 million zloty a year earlier, the Warsaw-based company said in a regulatory statement today. The result was below the 871.3 million-zloty mean estimate of 10 analysts surveyed by Bloomberg.

PGE’s volume electricity sales to external customers rose 9 percent to 7.9 terawatt hours, exceeding the 2.2 percent growth in total Polish consumption. The utility increased production as it started a 858 megawatt unit at its Belchatow plant, making the 5,354 megawatt, lignite-fired facility the largest thermal plant in Europe.

Rising volume sales and higher prices increased PGE revenue by about 543 million zloty from a year earlier, the company said in a website presentation.

The figure rose to 6.95 billion zloty from 4.84 billion zloty mainly because of new rules that require intra-company transactions to be conducted through Poland’s power exchange. After stripping out this effect, revenue rose 13 percent to 5.47 billion zloty, PGE said in the presentation.

Earnings before interest and taxes, or Ebit, climbed to 1.21 billion zloty from 793 million zloty, beating an estimate of 1.09 billion zloty.

--Editor: James M. Gomez

To contact the editor responsible for this story: Maciej Martewicz at mmartewicz@bloomberg.net


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