Energy, Energy Market, Estonia

"Based on the results of the asset value test and in accordance with international rules for financial accounting, we had to amortize in the course of the audit goodwill arising from the merger of Freenergy AS and Vardar Eurus AS," board member Kalle Kiigske said commenting on the difference.

The net profit of the Baltic renewable energy company AS Nelja Energia rose 21.8% year over year to 10.7 mln euros in 2017, it appears from audited figures released on Tuesday.

According to unaudited results published in February, the company's profit in 2017 was 7.5 mln euros, 10.7% smaller than in 2016.

The company's revenue in 2017 totaled 69.1 mln euros, representing a 49% increase over 46.7 mln euros in 2016.

Goodwill decreased by 5.6 mln euros. Without the latter net profit would have been 16.3 mln euros, 75% bigger than the year before.

Earnings before interest, tax, depreciation and amortization (EBITDA) grew 23.7% to 45.2 mln euros and pretax profit (EBIT) was up 18.1% at 22.5 mln euros.

According to unaudited figures, revenue grew 40% to 69.9 mln euros and net profit dropped 10.7 % to 7.5 mln euros as a result of asset writedowns.

Wind farms of Nelja Energia produced 761 gigawatt-hours of electric power in 2017, 23.7% more than in 2016.

Vardar AS, which through its subsidiary Vardar Eurus AS holds 77% of the shares in Nelja Energia, announced in January that it is considering exiting the Baltic market and selling its shares in the wind power developer Nelja Energia. Vardar said it has initiated a process to survey the interest for a sale of up to 100% of the shares in Nelja Energia.

Vardar AS is a Norwegian energy company devoted to investments in renewable energy production in the Nordic countries and the Baltics. Vardar Eurus is a company registered in Norway of which 90% belongs to Vardar AS and 10% to the Nordic energy investment fund NEFCO.