Elia Transmission Belgium
Elia Transmission Belgium
2021 half-year financial report
Brussels, 28 July 2021
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Elia Transmission Belgium ǀ 2021 half-year financial report |
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Content |
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1. |
Business performance review.......................................................................................................................... |
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1.1 |
Consolidated results and financial position of Elia Transmission Belgium for the first six months of 2021 ... |
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1.1.1. |
Segment reporting Elia Transmission (Belgium)........................................................................................... |
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1.1.2. |
Segment reporting Nemo Link and non-regulated activities ......................................................................... |
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2. Statement on the true and fair view of the condensed consolidated interim financial statements and
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the fair overview of the interim management report ...................................................................................... |
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3. |
Condensed consolidated interim financial statements................................................................................ |
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4. |
Notes to the condensed consolidated interim financial statements........................................................... |
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5. Joint statutory auditor's report on the review of the condensed consolidated interim financial
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information as at 30 June 2021 and for the six-month period then ended................................................. |
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6. |
Alternative performance measures................................................................................................................ |
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Elia Transmission Belgium ǀ 2021 half-year financial report
1.Business performance review
1.1 Consolidated results and financial position of Elia Transmission Belgium for the first six months of 2021
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Key figures (in € million) |
1H 2021 |
1H 2020 (restated *) |
Difference (%) |
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Revenue, other income and net income (expense) from |
542.5 |
474.5 |
14.3% |
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settlement mechanism |
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Equity accounted investees |
16.7 |
7.1 |
135.2% |
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EBITDA |
231.3 |
216.3 |
6.9% |
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EBIT |
130.9 |
123.8 |
5.7% |
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Net finance costs |
(33.2) |
(39.2) |
(15.3%) |
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Net profit |
76.4 |
63.3 |
20.7% |
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Non-controlling interests |
0.0 |
0.0 |
n.r. |
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Net profit attributable to the group |
76.4 |
63.3 |
20.7% |
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Total assets |
7,287.8 |
7,292.9 |
(0.1%) |
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Equity attributable to owners of the company |
2,390.6 |
2,312.3 |
3.4% |
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Net financial debt |
3,555.2 |
3,514.0 |
1.2% |
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Key figures per share |
1H 2021 |
1H 2020 (restated *) |
Difference (%) |
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Reported earnings per share (in €) |
0.37 |
0.31 |
19.4% |
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Equity attributable to owners of the company per share (in €) |
11.6 |
11.2 |
3.1% |
See the glossary for definitions
Comparative figures for Total assets, Equity and Net financial debt as at 31/12/2020
*Compared to the first half of 2020, the preferential dividend paid to National Grid (€9.1 million, 100%) was requalified as a liability to be released over the lifetime of the asset. We refer to note 4.2.2 for further details.
Pursuant to IFRS 8, the Group identified the following operating segments:
- Elia Transmission (Belgium), which comprises regulated activities in Belgium (i.e. the regulated activities of Elia Transmission Belgium);
- Non-regulatedsegment and Nemo Link, which comprises non-regulated activities within Elia Transmission Belgium and Nemo Link.
Rounding - In general, all figures are rounded. Variances are calculated from the source data before rounding, implying that some variances may not add up.
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Elia Transmission Belgium ǀ 2021 half-year financial report
1.1.1 Segment reporting Elia Transmission (Belgium)
Highlights
- Delivering on investments to maintain a reliable electricity system and sustainably electrify our society
- Higher fair remuneration driven by growing asset base leading to a solid operational performance
Key results
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Elia Transmission key figures (in € million) |
1H 2021 |
1H 2020 |
Difference (%) |
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Revenue, other income and net income (expense) from |
534.8 |
471.1 |
13.5% |
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settlement mechanism |
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Revenue |
475.2 |
419.1 |
13.4% |
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Other income |
32.7 |
27.4 |
19.3% |
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Net Income (expense) from settlement mechanism |
26.9 |
24.6 |
9.3% |
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Equity accounted investees |
1.2 |
1.1 |
9.1% |
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EBITDA |
216.0 |
211.2 |
2.3% |
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EBIT |
115.6 |
118.7 |
(2.6%) |
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Net finance costs |
(31.7) |
(34.2) |
(7.3%) |
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Income tax expenses |
(21.8) |
(23.0) |
(5.2%) |
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Net profit |
62.1 |
61.5 |
1.0% |
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Total assets |
6,966.2 |
6,990.9 |
(0.4%) |
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Total equity |
2,283.3 |
2,209.5 |
3.3% |
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Net financial debt |
3,367.0 |
3,305.6 |
1.9% |
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Free cash flow |
(42.5) |
(95.0) |
(55.2%) |
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See the glossary for definitions |
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Comparative figures for Total assets, Equity and Net financial debt as at 31/12/2020 |
Financial
Elia Transmission's revenue was up 13.5% compared with 2020, from €471.1 million to €534.8 million. Revenue was impacted by a higher regulated net profit, higher depreciations linked to the growing asset base and higher costs for ancillary services driven by the energy mix characterised by a high nuclear base load and more wind capacity for the first half of 2021. This was partially offset by lower financial costs driven in 2020 by the refinancing of a shareholder loan, which were all passed through into revenue.
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Elia Transmission Belgium ǀ 2021 half-year financial report
The table below provides more details on the changes in the various revenue components:
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(in € million) |
1H 2021 |
1H 2020 |
Difference (%) |
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Grid revenue: |
473.0 |
415.7 |
13.8% |
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Grid connection |
22.2 |
23.1 |
(3.8%) |
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Management and development of grid infrastructure |
241.4 |
241.7 |
(0.1%) |
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Management of the electrical system |
73.5 |
64.4 |
14.2% |
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Compensation for imbalances |
101.6 |
59.1 |
71.9% |
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Market integration |
11.4 |
10.8 |
5.5% |
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International revenue |
22.9 |
16.6 |
37.8% |
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Last mile connection |
1.4 |
1.4 |
(0.7%) |
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Other revenue |
0.8 |
2.1 |
(63.7%) |
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Subtotal revenue |
475.2 |
419.1 |
13.4% |
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Other income |
32.7 |
27.4 |
19.5% |
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Net income (expense) from settlement mechanism |
26.9 |
24.6 |
9.3% |
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Total revenue and other income |
534.8 |
471.1 |
13.5% |
Revenues from the management and development of grid infrastructure, market integration and grid connection revenues remained flat compared to prior year.
Services rendered in the context of energy management and individual balancing of balancing groups are paid under the revenues from compensation for imbalances. These revenues, which increased from €59.1 million to €101.6 million (+71.9%), are largely due to the tariff for maintaining and restoring the residual balance of individual access responsible parties (+€36.9 million). Higher balance activation costs due to the increase of prices mainly caused by maintenance on the COO plant between mid-April and Mid-June and the increase of imbalance volume caused by the increase of renewables share in particular offshore wind in the generation mix are the main drivers of the revenue increase. In addition, the net grid offtake (+€1.4 million) was up, showing a recovery from the COVID-19 crisis and the higher level of nuclear availability in 2021. Lastly, the net grid injection (+€4.2 million) was also up compared to the previous year.
Revenues from management of the electrical system increased from €64.4 million to €73.5 million (+14.2%), generated by the increase of the net grid offtake (+€4.5 million) and the introduction of a new tariff for additional reactive energy by zone for distribution system operator (+ €4.6 million).
International revenue increased to €22.9 million (+37.8%), mainly due to the additional congestion income on the border with Germany since the release of ALEGrO's full capacity and the increase in grid offtake as the recovery from the COVID-19 crisis progressed.
Last mile connection (previously called transfer of asset from customers) was down slightly compared to the previous year while other revenue dropped by €1.3 million, mainly due to a decrease in works delivered to third parties.
The settlement mechanism increased from €24.6 million in 2020 to €26.9 million in 2021 and encompassed both deviations in the current year from the budget approved by the regulator (-€7.5 million) and the settlement of net surpluses from the previous tariff period (+€34.4 million). The operating surplus (-€7.5 million), with respect to budgeted costs and revenue authorised by the regulator, will be redistributed to consumers in a future tariff period. The surplus is primarily the result of an increase in tariff sales (+€38.5 million) driven by imbalance compensations and partially offset by higher costs for ancillary services (€17.9 million) and higher influenceable costs (€12.4 million).
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Disclaimer
Elia System Operator SA published this content on 27 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 July 2021 07:58:12 UTC.