Tauron Profit Beats Estimates on One-Time Green Energy Gains

May 9, 2013 by  
Filed under Green Energy News

Tauron Polska Energia SA, Poland’s
second-biggest power utility, posted a stronger-than-expected
increase in first-quarter profit after falling prices of green
energy certificates helped it release part of reserves.

Net income jumped 46 percent to 558.3 million zloty ($178
million), the Katowice, Poland-based company said in a
regulatory statement today. That beat the 408.7 million-zloty
mean estimate of six analysts surveyed by Bloomberg.

Tauron booked a one-time gain of 169 million zloty in its
sales business after a decline in prices of green certificates
that power suppliers have to buy to meet green energy quota, it
said in a separate e-mailed statement. The average price of
green certs in the first quarter declined 50 percent from a year
earlier as the award of certificates for renewables generation
outpaced demand from power suppliers.

“The main impact on better-than-expected earnings comes
from the sales division,” Stanislaw Ozga, an analyst at PKO
Bank Polski SA, said by phone today. “Profit margins rose as
the cost of energy dropped more than its price, while prices of
green certificates fell too.”

Earnings before interest and taxes, or Ebit, more than
tripled to 339.1 million zloty at Tauron’s sales unit. The
group’s Ebit rose to 788.3 million zloty from 558.5 million
zloty, according to the statement.

The utility produced 3.4 percent more power than a year
earlier, or 5.15 terawatt hours, while electricity sales fell
8.1 percent to 10.9 terawatt hours.

To contact the reporter on this story:
Maciej Martewicz in Warsaw at
mmartewicz@bloomberg.net

To contact the editor responsible for this story:
James M. Gomez at
jagomez@bloomberg.net

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