Throughout 2018, the Distribution Business Line generated almost 91% of the EBITDA for the Energa Group (vs. 80% in 2017).
The sales revenue of the Distribution Business Line in 2018 was PLN 4,028 m vs. PLN 4,300 m in 2017. This was mainly the effect of:
EBITDA remained at a similar level year on year, amounting to PLN 1,704 m. A significant impact on the operating result at the level of PLN 944 million was::
The EBITDA of the Generation Business Line in 2018 was PLN 329 m, accounting for 18% of the total Group EBITDA (also 18% in 2017). The Line’s EBITDA in 2018 was driven by:
The revenue of the Sales Business Line in 2018 amounted to PLN 5,529 m, and it grew by PLN 213 m (or 4%) relative to 2017. As usual, the most important revenue item of the Business Line is revenue from the sale of electricity, which went up by 4% (or PLN 216 m) yoy in 2018. This is an effect of an increase in the average selling price of energy by 5%, with a similar sales volume.
In 2018, EBITDA in the Sales Business Line was PLN -85 m, as compared to PLN 85 m in EBITDA in 2017. Non-recurring events which occurred both in 2017 and 2018 significantly contributed to the change in EBITDA.
One-off events had the most significant impact on the Business Line results in 2018. In connection with the implementation of the Act amending the Act on Excise Tax and Some Other Acts of 28 December 2018, a provision was established for contracts giving rise to charges at Energa Obrót SA in the amount of PLN 136 m (one-off non-cash event).
In connection with the cases seeking recognition of long-term contracts for purchase of green certificates as invalid, the Sales Business Line in the year 2018 was charged with the amount of PLN 26 m arising from the resolutions of some of those cases in arbitration proceedings (another one-off event). Further-more, settlements ending disputes were concluded in 2018 with three counterparties. The aggregate power generating capacity of the facilities with whom settlements have previously been concluded ac-counts for over 31% of the aggregate installed capacity of all sued wind farms. As a result of the decision to recognise the said contracts as invalid, in 2018 the Business Line proceeded to the purchase of green certificates at market prices in the overwhelming majority (in addition to the disputes resolved during that period).
The following factors also had an impact on the change of EBITDA level of the Business Line: