Eesti Energia releases Q2 results for 2010/11 financial year

Total revenues of Eesti Energia for the Q2 of 2010/11 financial year amounted to 165.5 million euros, operating profit to 22.4 million euros, net profit to 14.4 million euros and investments to 47.6 million euros.

„Over the second quarter of the current financial year the Group's efficiency continued to increase. Today, more than half of the electricity is sold to open markets. In addition, a substantial part of the net profit was earned from the sale of shale oil based liquid fuels," commented the Group's financial results Margus Kaasik, CFO of Eesti Energia.

According to the CFO the Group's profit growth was driven by successful electricity sales in Estonian and Latvian open markets. The production volume of shale oil based liquid fuels went up by approximately 20 percent while the revenues increased 30 percent. Additionally, financial results were positively impacted also by profitable agreements on the sale of energy equipment and increased shale oil shale sales volumes. The revenues of all core services and products increased.

Total investments in the Q2 and six months of 2010/11 financial year amounted to 47.6 million euros and 85.9 million euros respectively.

Retail division invested in Q2 a total of 13.1 million euros including 12.5 million investments to new connection points and improved reliability of distribution network.

Total investments by electricity and heat generation division in Q2 amounted to 20.4 million euros including investment to desulphurisation equipment in Narva Power Plants in the amount of 13.3 million euros. In total 49 million euros have been invested to the project.

Fuels division invested in Q2 11.3 million euros including 4.6 million euros to Enefit-technology based oil plant and 4 million euros to oil shale mining equipment and facilities.

The market share of Eesti Energia in the Estonian open market has remained around 87% since the market opening on 1 April 2010. The average number of customers in Latvia in the Q2 was 118, up by 4 compared to the same period a year ago. Eesti Energia's market share in the Latvian open market remained around 17%. In the Lithuanian open market the number of retail customers and the market share increased substantially in the Q2 reaching 83 customers and 17% respectively by the end of the quarter.

In Q2 of 2010/11 financial year Eesti Energia sold 2.4 TWh of electricity, up by 14.4 percent year-on-year.

In the Q2 the electricity sales at regulated prices to Estonian closed market residential and business customers as well as network companies amounted to 1.1 TWh, down 25.7% compared to the same period a year ago. Total sales at non-regulated prices to Estonian, Latvian and Lithuanian open market retail customers, Nord Pool Estonia price areas, Lithuanian power exchange BaltPool and bilateral wholesale agreement partners amounted to 1.4 TWh, which is 100.7%more than a year ago.

The sales of liquid fuels increased by 19.1 percent and amounted to 36.4 thousand tonnes in the second quarter of 2010/11 financial year. The revenues from the sale of liquid fuels increased 30.1 percent to 10.3 million euros due to higher fuel oil world market prices.

The sales of heat energy amounted to 50 GWh, which is 11.4 percent less than a year ago.

As at the end of September 2010 mobile internet service Kõu had approximately 25.5 thousand active users, up 3.4 percent year-on-year.

729 new customers chose renewable energy based Green Energy package in the Q2. Total sales amounted to 7 GWh, which is more than 80% higher than a year ago.

More information on the financial results and business environment of Eesti Energia Group is available from our quarterly interim report at Eesti Energia homepage.