Eesti Energia's financial results for the first quarter of the financial year 2008/2009


The operating revenue of Eesti Energia (EE) for the first quarter of the financial year 2008/2009, which ended this June, totalled to 140 MEUR, operating profit was 15 MEUR and net profit 12 MEUR.

Margus Kaasik, Eesti Energia CFO, noted, commenting on the results, that in the first quarter Eesti Energia was able to increase operating revenue faster than operating expenses. “On the one hand, this was caused by the increase in the sales revenue of thermal and electric energy, on the other hand, the speed of growth in some of the larger expense categories, such as labour, has slowed down,” commented Kaasik.

As to the forecast for the second quarter, Kaasik added that in relation to the repairs to the Ignalina nuclear power plant, the balance between the demand and supply of power in the Baltic region will change, as a result of which the prices on the wholesale market of electricity can be expected to be on the upswing. According to Kaasik, the Nordic power exchange Nord Pool is a good example, where in the Helsinki price region, the average daily hourly prices range from 63 to 65 euros per megawatt-hour, reaching a maximum of EUR 77 per megawatt-hour. “With the increase in the prices of raw materials, an inevitable price convergence can be expected to take place between the electricity prices in the Baltic wholesale market and the prices in Nord Pool,” said Kaasik.

The most important events in the first quarter were definitely the cornerstone laying ceremony for the Aulepa Wind Park and the entry into an exclusive cooperation agreement between Eesti Energia and the Jordanian government for establishing a power plant. Also, Eesti Energia launched studies for the establishment of marine wind parks and received the global environmental award in the national category.

The sale of domestic electricity in the first quarter totalled to 1618 GWh, which is 2.9% or 45 GWh more than in the financial year 2007/08. The sale of electricity on the domestic open market decreased by 8.8% (17 GWh), the sale to business clients in closed markets increased by 2.2% (19 GWh), to domestic clients by 12.4% (42 GWh) and sales to network operators by 1.4% (3 GWh).

Through the Estlink cable, launched in 2007, EE exported electricity to Finland in the amount of 357 GWh in the first quarter of the financial year 2008/2009, which is 25.3% (72 GWh) more in comparison with the first quarter of the previous financial year. Commencing the launch of Estlink at the beginning of January 2007 until the end of June this year, EE exported a total of 2 257 GWh of electricity to Finland.

The sale of thermal energy in the first quarter of 2008/2009 was recorded to be 276 GWh, increasing by 20 GWh in comparison with the first quarter of the previous financial year (it must be taken into account that in June 2007, Iru Power Station did not sell electricity). The sales revenue was positively affected by the external temperature that was 0.4 degrees lower than during the same period last year.

Sales of shale oil increased by 55.8% in the first quarter this year, in comparison with the first quarter of the previous financial year, amounting to 46 520 metric tons. Together with the increase of the world market price of oil, the world market prices of fuel oils have taken a major leap, influencing the price of shale oil as well – the sales revenue of shale oil increased by 124.5% in comparison with the first quarter of the financial year 2007/2008.

In the first quarter of the financial year 2008/2009, EE invested a total of 57 MEUR. The focus of investments remains on power networks, where about 75% of the investments were made. The investments in Distribution network amounted to 26 MEUR and were made in the construction of new connections and in the increase of the reliability of the network. The investments in Main Grid amounted to 16 MEUR, the majority of which comprised investments in the reconstruction of transformers and power lines.

The results and business environment of the company will be detailed in the quarterly interim report, which will be completed in Week 32.

Additional information:
Iveri Marukashvili
Eesti Energia AS
Press Officer
T: +372 71 51 218
M: +372 53 411 813
F: + 372 715 28 06
[email protected]