Eesti Energia’s financial results for the first quarter of the 2006/2007 financial year

Eesti Energia’s sales revenue for the first three months of the 2006/2007 financial year amounted to 130.8 million EUR. The Group’s net profit for the given period was 34.0 million EUR. Domestic electricity sales continued to grow in the first quarter increasing by 8,6 % (117 GWh). A total of 110 GWh was exported during the first quarter of 2006/2007 financial year. Due to an increase of average air temperature, sales of thermal energy decreased by 1,4% (14 GWh) over the same period last year. The main events of the first quarter were: the beginning of construction of the Estlink submarine cable, launch of cooperation between Eesti Energia and Solidus OY, commencement of the feasibility study of a new nuclear reactor in Ignalina Nuclear Power Plant (Lithuania), creation of Eesti Energia’s Future Energy Fund as well as the first steps of Televõrgu AS (Telecommunications Network) towards entering the retail Internet market. At the end of the first quarter of the financial year rolling 12 month domestic power network losses have decreased from the 20.5 per cent in 1998 to 11.5 per cent. “Modernizations of electrical power networks and efficient electricity sales enable us to save the loss of 900 GWh of electricity 45 million EUR annually” – said Sandor Liive. In the first quarter of the 2006/2007 financial year Eesti Energia invested 34.3 million EUR into production units and renovation of electrical power network. The most significant investments into the production segment were at Iru Power Plant (OÜ Iru Elektrijaam), where low nitrogen oxides burners will be installed and at Eesti Power Plant with its new ash disposal system. National Grid (OÜ Põhivõrk) continued with strategically important Narva-Tallinn network development and with construction of Estlink submarine cable project. Distribution network’s (OÜ Jaotusvõrk) main investment directions include renovation of low-voltage network, voltage quality program and building new connections. In the 2006/2007 financial year Eesti Energia is going to invest more than 150 million EUR. “The investment strategy of Eesti Energia follows the criteria of economic efficiency, environmentally conscious development and security of supply. This mainly means the diversification of power production and an increase in efficiency in the power networks,” said Margus Kaasik, CFO of Eesti Energia. He added that both operating cash flow and extraordinary income from emissions trading would be used for investments. Because of the positive results of 2005/2006 financial year, Eesti Energia will pay the dividends in the amount of 31,9 million EUR (41,8 million EURO including income tax). The financial results of the Eesti Energia group consolidate the results of subsidiaries responsible for energy production, transmission, distribution and sales, and provision of other services. The financial year for Eesti Energia began on 1 April of this year and will last until 31 March 2007. The financial results and the operating environment of the company are described in greater detail in the interim report for the quarter: Additional information:
Iveri Marukashvili
Eesti Energia Communications Specialist
Tel.: +372 71 51 218
GSM.: + 372 53 411 813
E-mail: [email protected]