Eesti Energia’s financial results for the first half-year of FY 2007/2008

Eesti Energia’s operating revenue for the first six months of the financial year 2007/08 grew to 255 MEUR, without considering the effects of the emissions trading. The company’s operating profit was 30 MEUR. The group’s net profit was 8 MEUR. Compared to the previous financial year, the results of the first six months were considerably influenced by the extraordinary income from emissions trading having dropped by 66 MEUR and the 18 MEUR paid as income tax on the dividends. “The positive financial results of the first half-year were supported by the growing domestic sales of electricity and the increased export to Finland,” said Margus Kaasik, Eesti Energia’s CFO. Kaasik added that the company’s financial results will improve in the second half-year and without considering the effects of the emissions trading, the result at the end of the financial year are expected to exceed that of last year. Domestic electricity sales grew by 6% compared to the first six months of the previous financial year, amounting to 3,010 GWh (gigawatt hours). Eesti Energia exported 656 GWh of electricity to Finland while export to Latvia increased almost three times (851 GWh) compared to the first half of the last year. The sale of heating energy dropped by 69 GWh compared to the first six months of last financial year and comprised 370 GWh at the end of September. By the end of the first half of this financial year, the 12-month rolling domestic energy losses have decreased from 11.4% down to 10,5% compared to the same period in the previous financial year. In the first six months of the 2007/08 financial year, Eesti Energia invested a total of 72 MEUR, of which more than half was invested into upgrading electricity grids and the rest was invested into making the production of electricity, oil shale and fuel oil more efficient. The most important investment projects involved upgrades to a number of substations, construction of new connection points and reducing voltage problems and network losses. In regards to electricity production, the main investments were tied to the renewal of the ash disposal system at Narva Power Plants. The most important events of the 2007/2008 financial year certainly included the launch of the “KÕU” mobile Internet service, which by now has more than 10,000 subscribers. The first six months also saw the launch of a system whereby clients can apply for a network connection electronically as well as winning the title of financial reporting Flagship for the second year in a row. The financial results for the Eesti Energia group consolidate the results for its subsidiaries engaged in production, transmission, distribution and sales and the provision of other services. The financial year of Eesti Energia began on 1 April 2007 and will end on 31 March 2008. The company’s financial results and operating environment are described in more detail in the six-month interim report, which will be released in early November and published on the Eesti Energia website. Additional information:
Helen Attikas
Communication Development Management
Ph: 71 52 255
Mob: 56 625 888
e-mail: [email protected]