ONDE sees an increase in its profitability

After three quarters of 2024, ONDE noted PLN 34 million of the operating profit and PLN 21.2 million of the net result. This is a result of improvement in profitability in contractorship and in income on RES development activities.

Between January and September 2024, the ONDE Group, specialising in RES contractorship and development, achieved PLN 582.4 million in sales (does not include PLN 73 million of processing for the Park Lewałd Farm constructed as own project), versus PLN 838.7 million in the corresponding period of 2023 (-30.6 percent y-o-y). Despite lower revenues, the Company maintained the operating profit at a virtually unchanged level versus the same period of 2023, which amounted to PLN 34 million. Thus, the ONDE operating profitability increased from 4.2 percent to 5.9 percent. Whereas in the reporting period, the Company net result was at the level of PLN 21.2 million, versus PLN 23.2 million in the comparable period, and the net profitability increased from 2.7 percent to 3.6 percent.

– “The contractorship sector noted an improvement in the margin, which compensated lower revenues. The market is increasingly difficult, as the 10H Distance Act has not been amended yet. Nevertheless, we continue to sign successive new contracts, because we have excellent references and competences, and unique experience”, says Paweł Przybylski, ONDE President.

The largest order won by ONDE in the third quarter, and one of the largest in the market is the contract with VSB Poland for performance of works during construction of the Miejska Górka Wind Farm consisting of 53 wind turbines, together with accompanying facilities. ONDE won this contract as a member of a consortium, and the value of works to be performed by it amounts to ca. PLN 164 million.

– “In the nearest future we expect a decrease in availability of wind projects; however, at the same time, we note intensified investors’ activity in the PV segment. This should balance the market to a large extent. It is also the time when we intend to focus more on RES development activities, which are less dependent on the market situation and will ensure considerable income”, adds Paweł Przybylski.

– “In the coming quarters we plan to complete the construction of the Park Lewałd Farm and start successive construction projects from our own portfolio. Our plan for 2025 assumes starting execution of projects of the capacity of up to 300 MW; and a significant part of them should be constructed under the system in which financing is provided by the target investor. We are still working on increasing the value of projects in our portfolio – mainly through hybridisation, i.e. combining wind power systems with PV modules using already granted connection conditions (so-called cable pooling). This way a farm doubles its nominal capacity and, of course, the profitability of the entire project also increases”, explains ONDE President.

Currently, ONDE has RES projects with connection conditions of a total capacity of ca. 415 MW in its developer portfolio of ca. 1.2 GW. The Company is working on significantly expanding its portfolio in the next 2 to 3 years, to the level of at least 2 GW.

In the RES contractorship sector, at the end of September 2024 the ONDE portfolio of external orders was worth ca. PLN 570 million, versus PLN 770 million at the end of September 2023. The RES sector expect successive release of a significant supply of new wind projects within 2 to 3 years, if the 10H Distance Act is amended. According to the sector organisations’ estimations, a reduction in the minimum distance between turbines and buildings can even double Poland’s potential in available areas for onshore wind projects. It is estimated that even 9 GW of new capacity in the onshore wind power projects will be constructed by 2030.