Eesti Energia group’s financial results for the first 9 months of the financial year 2007/08


Eesti Energia’s 9 month operating revenue of the financial year 2007/08 totalled 419.9 MEUR, which is 25.5% more than in the same period last year, without considering the effects of CO2 emissions trading. The operating profit of the company was 62.9 MEUR and the net profit of the group was 40.3 MEUR.

The results of the 9 months of the financial year 2007/08 were greatly affected by the increased export and domesic sale revenues, lack of CO2 emissions trading revenues, increased expenses and the income tax of about 17.9 MEUR paid on dividends in the second quarter of the financial year.

According to Margus Kaasik, CFO of Eesti Energia, the financial results of the first three quarters were supported by the growing domestic sales of electricity and increased export to Finland. Kaasik added that without considering the revenues and costs of CO2 emissions trading, a better result can be expected by the end of the financial year than compared to that of last year.

The domestic sale of electricity increased by 8.2% compared to the 9 months of the previous financial year, amounting to 4, 998 GWh (gigawatt-hours). Export growth was mainly caused by export to the Nordic countries which started in January 2007. From the beginning of the financial year 2007/08, a total of 1, 157 GWh of electricity has been exported to Finland. In the first 9 months of the financial year, export to Latvia increased considerably, amounting to 1, 185 GWh. The total exports for the period were 2, 343 GWh, an increase of 237% when compared to last year’s result.

The sale of thermal energy increased by 10 GWh compared to the 9 months of the previous financial year, amounting to 1, 000 GWh by the end of December.

The rolling 12 month domestic network losses have decreased from 10.2% down to 9.2% by the end of the 9 months of the financial year, compared to the same period in the previous financial year.

In the first 9 months of the financial year 2007/08, Eesti Energia invested a total of 115.2 MEUR, of which more than half was invested into upgrading power networks – a total of 69.4 MEUR. The most important investment projects of the first 9 months of the financial year included upgrades to a number of substatiions, construction of new connection points and reduction of voltage problems and network losses. With respect to electricity generation, the main investment projects were related to meeting the stricter environmental requirements, and the increase in the efficiency of generation.

The most important event of the first 9 months of the financial year is definitely the launch of the 39 MW windpark. Furthermore, according to the survey of service in Estonia, published by TNS Emor in the third quarter of the financial year, Eesti Energia is one of the Estonian companies with the best service. Besides that, the three quarters also included the launch of the electronic subscription service for clients and the provision of outdoor electrical works.

The financial results of the Eesti Energia group include the consolidated results of subsidiaries engaged in generation, transmission, distribution and sales, and other services. The financial year of Eesti Energia began on 1 April, 2007 and will end on 31 March of the present year.

The company’s financial results and operating environment are described in more detail in the nine-month interim report, which will be released by the middle of February and published on the website of Eesti Energia.

Iveri Marukashvili
Eesti Energia AS
Press Officer
Tel.: +372 71 51 218
GSM: + 372 53 411 813
e-post: [email protected]