Energy, Estonia, Good for Business

On 2 January 2015, Elering acquired 51.38% of Võrguteenus Valdus AS’s shares. Therefore, starting from first quarter this year, Elering presents its consolidated financial results. Võrguteenus Valdus is a holding company whose only business activity is holding the shares of the owner of the Estonian gas transmission network, Elering Gaas AS.

Regardless of the additional revenue from the subsidiary, Elering’s revenue fell by 4.6 million euros compared to the first quarter of 2014. The main reason for the fall in revenue lies in the lower network tariffs that took effect on 1 April 2014, as well as the change in accounting principles for recording the proceeds from the cross-border transmission capacity auction that changed since 1 July, 2014. Operating as well as financial costs increased by 0.6 million euros and profits fell by 5.8 million euros.

Positive cash flow from operations was 23.9 million euros and negative cash flow into investments totalled 13.2 million euros. Investments into non-current assets were 4.6 million euros and investments into the subsidiary, 27.6 million euros. In addition, inflows from cross-border transmission capacity auctions totalled 3.8 million euros and the non-repayable financial aid from the European Union for the interconnection between Estonia and Finland, EstLink 2, totalled 15.0 million euros. The cash increased by 10.7 million euros over the quarter.

Assets totalled 836.1 million euros by the end of the first quarter, out of which assets of the subsidiary totalled 57.6 million euros.

Elering manages Estonia’s electricity and gas transmission system in real time, ensuring that Estonia’s consumers enjoy a high-quality energy supply at all times.