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International Internet Magazine. Baltic States news & analytics Tuesday, 02.06.2020, 14:39

Elering earned net profit in the amount of 18.6 mln euros in 2018

BC, Tallinn, 21.03.2019.Print version
According to the audited report, in 2018, Elering earned a net profit in the amount of 18.6 mln euros with revenue amounting to 144.8 mln euros compared to the net profit of 17.1 mln euros earned in 2017,Elering`s representative Ain Koster informed BC.

The main factor contributing to the profit growth was the decrease in financial expenses due to the issue of new bonds with a considerably lower interest rate than before. The financial expenses of the company fell from 11.1 mln euros in 2017 to 7.4 mln euros last year.

“Last year Elering’s activities focused on guaranteeing long-term security of supply,” said chairman of the Elering management board Taavi Veskimägi. “We launched the construction of the third Estonia-Latvia power connection and the Estonia-Finland gas link and submitted an application for funding the connection to the Continental Europe synchronous grid, which has received a positive response. The refinancing of bonds at much lower costs than before has been a major milestone that ensures the implementation of the aforementioned strategic projects.”

Elering’s revenue increased by 9.8% to 144.8 mln euros. Although the net profit of the company increased, the 42% increase in the average price of electricity in the past year reduced Elering's operating profit by 6.6 percent to EUR 31.0 mln. Elering buys all the electricity needed to cover network losses from the Nordic power exchange Nord Pool.

Elering invested 125 mln euros last year. Most of the investments were made in Balticconnector and the new Estonia-Latvia 330 kilovolt power line. The assets of the company amounted to 948.4 mln euros at the turn of the year.

The equity formed 384.8 mln euros and interest-bearing debt obligations 353.7 mln euros at the turn of the year. This year Elering intends to pay 29.4 mln euros as dividends to the owner, to which income tax of 6.8 mln euros is added


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