Polish utility Tauron’s net profit for the first quarter of 2014 increased by 40% year-on-year

The Polish utility Tauron posted on Wednesday a 40% increase in its net profit for the first quarter, largely due to strong performance in its distribution and supplies segments.

The results were in line with preliminary figures released by the company on May 12th.

Why it's important

Donald Tusk, the Polish prime minister, called on state-controlled energy companies, including Tauron - Poland's second largest power utility by value of market - to put more emphasis on affordable power than maximising profits. Tauron's coal-fired power fleet is experiencing declining profitability as the company continues to shift towards renewable energy.

By the Numbers

Tauron posted a net profit of 1,13 billion zlotys (302.32 million dollars) and an increase in revenue by 10% on the previous year to 9,30 billion zlotys. The company's EBITDA (earnings before interest, tax, depreciation, and amortization) was in line with expectations at 2.33 billion Zlotys.

CONTEXT

A Tauron subsidiary signed a contract worth?287m for a co-generation gas project at the Czechowice Dziedzice CHP Plant in the first quarter. The company signed a letter with the Trzebinia municipality to collaborate on Siersza Power Plant, and announced settlement agreements between Amon and Talia. ($1 = 3.7378 zlotys) (Reporting by Julia Kotowska Editing by Tomasz Janowski)

(source: Reuters)