Analytics, Energy, Energy Market, Estonia, Good for Business
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Thursday, 18.04.2024, 06:34
Elering earned net profit in the amount of 18.6 mln euros in 2018
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