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International Internet Magazine. Baltic States news & analytics Tuesday, 26.05.2020, 09:34

Eesti Energia's net profit EUR 23.2 mln in 2019

BC, Tallinn, 28.02.2020.Print version
The total revenue of Estonia's state-owned energy generating and distribution group Eesti Energia in 2019 hit an all-time high of almost 1.02 bin euros, marking the first time that the group's annual revenue has crossed the one billion euro mark, while net profit fell 78% to 23.2 mln euros, informed Eesti Energia`s representative.

Total revenue grew by 13% or 120.9 mln euros year over year. Sales revenue grew by 9% or 81.2 mln euros to 956.4 mln euros. Earnings before interest, taxes, depreciation and amortization (EBITDA) decreased by 23.4 mln euros to 259.8 mln euros and net profit dropped by 83 mln euros to 23.2 mln euros. 

The group's CFO Andri Avila said that when it comes to operating revenue, the group recorded its best ever result, which shows that they have been moving in the right direction developing the fields of renewable energy, liquid fuels and services directed to clients in the first place. The CFO admitted that the group's profitability suffered as a result of large-scale changes undertaken in large energy generation, as the group had to react to the market situation to be able to move towards the future stronger. 

As another negative factor, the CFO highlighted an increase by over 33 mln euros in amortization. This was caused in the first place by the addition of the Auvere power plant to group assets.

On the upside, the CFO observed that the group's vigorous steps in developing renewable energy have borne fruit and the renewable energy subsidiary Enefit Green has become the most profitable company of the group within a few years.

Eesti Energia produced a total of almost 1.65 terawatt-hours of renewable energy during the year, of which renewable electricity made up 1.28 terawatt-hours. Of that mount one TWh was generated by the wind farms in Estonia and Lithuania, which demonstrated good dependability. The rest was generated mainly from wood waste, at solar parks and at cogeneration stations. 

Of the total electricity generation volume, electricity produced from renewable and alternative resources constituted 36% in 2019, up from 13% in 2018. The group's target when it comes to this indicator is 45% by 2023.

The group’s electricity generation volume totaled 5.5 TWh in 2019, marking a reduction by 39.2 % year-on-year. Eesti Energia’s electricity sales and generation volume were impacted by higher market prices of carbon emission allowances, and more extensive than anticipated maintenance works at the power plants, mainly related to the newest power unit Auvere. 

In 2019, the average CO2 emission allowance price was 24.9 euros per ton, 59.4 %

higher than in 2018, while the average market price of electricity stayed on a level comparable with that of 2018. 

Reduction in the generation of electricity from oil shale resulted in the amount of CO2 emissions by Eesti Energia dropping 48 % year on year to 5.9 mln tons. As a result, total emissions by Estonia fell by about a quarter, which put Estonia among the countries that are reducing their carbon footprint the fastest in Europe. 

The group’s annual shale oil output, 442,000 tons, marks an increase of 7.8 % year on year and is the highest level ever achieved. Sales volume totaled 436,000 tons, representing an improvement of 11.0% on year.

The group's network service subsidiary Elektrilevi saw its sales revenue decline due to a reduction in the network tariff for customers, which left some 20 mln euros more in the hands of customers. The reduction in the price of the service was enabled by effective management and a favorable interest environment. 

Investments by Eesti Energia dropped 30% to 136 mln euros. Investments into the distribution network continue to make up the largest share of total capital expenditures -- 83 mln euros. The biggest factor behind the reduction in investments was the completion of the investment in the Auvere power plant that was accepted from the contractor in 2018.

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