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

Eesti Energia’s sales revenue for the first six months of the 2006/2007 financial year amounted to 204 million EUR, an increase of 8% over the same period last year. The Group’s net profit for the given period was 81 million EUR. Domestic electricity sales increased by 9% over the same period last year constituting 2 838 GWh. A total of 477 GWh was exported during the first six months of the 2006/2007 financial year. Sales of thermal energy have decreased by 2% since warm weather pushed the beginning of the heating period to October. The first six months of the 2006/2007 financial years can be described by the following events: Eesti Energia’s subsidiary E.Energy received a license to sell electricity in Latvia, buying the Scandinavian energy trading company Solidus, feasibility study of a new nuclear reactor in Ignalina Nuclear Power Plant (Lithuania) and hosting the Executive Assembly of World Energy Council in Tallinn. The most important event was, of course, the full installation of the Estlink cable to the sea bottom as well as completed installation of the underground part of the cable on both the Estonian and Finish sides. “During the first six month of financial year Eesti Energia has done some good work, increasing corporate value and moving ahead towards achieving strategic goals,” said Sandor Liive, CEO of Eesti Energia. “Positive financial results along with Eesti Energia’s activity in the Baltic Sea region are good signs that show Estonian energy company has big opportunities to become successful in a competitive and expanding market. It helps us to serve our present and future customers even better,” added Liive. At the end of the first six months of the financial year rolling 12 month domestic power network losses have decreased from the 12.35% in the same period last year to 11.37%. “Modernisation of electrical power networks and efficient electricity sales enable us to save the loss of 85 GWh of electricity, which amounts to 1.3 million EUR annually,” said Sandor Liive. During the first six months of the 2006/2007 financial year Eesti Energia investments are 68 million EUR. 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 friendly conscious development and security of supply. This means the diversification of power production and an increase in efficiency as well as improvements of voltage quality in the power networks. 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 due later this month. Additional information:
Iveri Marukashvili
Eesti Energia communications specialist
Tel.: +372 715 1218
GSM.: + 372 5341 1813
E-mail: [email protected]