ZE PAK power posts PLN 13.8 mln net loss in Q1 '25 vs PLN 4.6 mln loss in prior year period

The operating loss was PLN 9.4 million (EUR 2.2 mln), against a profit of PLN 23.2 million (EUR 5.46 mln) a year earlier. EBITDA loss amounted to PLN 5.4 million (EUR 1.3 mln) compared to a profit of PLN 26.7 million (EUR 6.3 mln) in the first quarter of 2024.

Total sales revenue reached PLN 309.3 million (EUR 72.8 mln), down from PLN 519.6 million (EUR 122.3 mln) in the prior year period.

As ZE PAK reported, the drop in revenue was mostly driven by a decrease in revenue from electricity sales due to both an average price lower by 14.19 percent, and a decrease in total sales volume by 8.00 percent.

The main development project underway at the ZE PAK group is the construction of a 600 MW class gas-steam unit on the site of the former Adamow power plant. According to the group, the advancement of work at the end of 2024 was 33.4 percent, with the expected commissioning date of the unit set for the third quarter of 2027.

The group is working all the time to secure external financing for the project.

"This work is extending beyond the originally planned schedule. Currently, the project is being implemented with own funds and with funds raised from bridge financing," ZE PAK said in the report.

In January 2025, ZE PAK signed a term sheet with listed power utility PGE for the potential divestment of the project. The document provides for exclusive negotiating rights for PGE until the end of June 2025, but, as ZE PAK stressed, it does not prevent it from continuing its work seeking external debt financing, as the group does not currently have the capacity to finance the project entirely from its own resources.

ZE PAK pointed out in the report that in scenario of not succeeding in sale of the project and

simultaneous lengthening of the process of obtaining external debt financing, the group will have to consider other ways to enable the continuation of the construction of the CCGT unit or temporarily suspend the project. This would, however, involve additional costs and complication of the schedule of execution works.

"Management also considers such alternative scenarios in its formal going concern assessment," ZE PAK reported.

As stated, one of the potential projects currently being analysed, is the modernisation of the 474 MW coal-fired unit at the Patnow Power Plant to adapt it to burn gas.

Design work is also underway to prepare for the development of the Przykona photovoltaic farm with a capacity of around 280 MW. In addition, as part of the purchased Opole Wind Farm project, the construction of wind farms with a total capacity of 500 MW is planned in the area of three counties in the Opolskie region.

pel/ ao/