Energy, Estonia, Investments

Net profit plummeted 64.5% to 19.4 million euros compared to the year-earlier 54.7 million euros. Earnings before interest, taxes, depreciation and amortization (EBITDA) fell 31.4% to 60.3 million euros and the EBITDA margin declined by 9.4%age points to 30.6%, it appears from the interim report.

Eesti Energia managed to stay profitable despite unusually low energy prices at the beginning of the year, CFO Andri Avila said.

"In January the world market price of oil fell to a level it hadn't had since 2004. This naturally complicated the situation for energy companies and in this context a net profit of 19 million euros is a good result," Avila said.

The group produced in the first quarter 2.2 terawatt-hours of electricity, 5% less than in the same period a year earlier. The decrease was due to the drop in the market price of electric energy.

"At the beginning of the year the NordBalt underwater cable between Lithuania and Sweden went into operation, which provides the Baltic countries with cheap Scandinavian nuclear and hydro energy. Its impact was clearly seen in the fall in Latvian and Lithuanian electricity prices," Avila observed.

A positive fact is that Eesti Energia managed to boost electricity sales in Latvia and Lithuania by 31%, the CFO said. The company's market share grew to 15% in Latvia and 6% in Lithuania.

Shale oil production totaled 67,000 tons, 21% less than in the first three months of 2015. The output of the new Enefit280 oil factory was 38,000 tons, accounting for almost 60% of the total.

The group invested 32 million euros during the first quarter.