Iseteenindus

Eesti Energia Group audited results for FY2011

27.02.2012
Consolidated revenues of Eesti Energia for FY 2011 amounted to 858 million euros (+8% y-o-y), operating profit to 168 million euros (+13% y-o-y) and net profit to 149 million euros (+28% y-o-y)

Key financial indicators

The Group's revenue growth was supported by the higher sale of electricity at unregulated prices (+32.3 million euros), increased sales of network services (+12.4 million euros) and sales of liquid fuels (+9.1 million euros).

The Group's EBITDA amounted to 265.1 million euros (+22.9% y-o-y), while operating profit increased 12.8% to 168.0 million euros in FY2011.

The Group´s results were mostly influenced by the significantly higher operating profit of Fuels division (71 million euros, +82.7% y-o-y). The EBIT increase was mainly due to higher oil margins and non-recurring revenues from the sale of 11% holding in the Jordanian project company and the revaluation of the remaining stake. The increase in the operating profit of Electricity and Heat Generation division (80 million euros, +3.5% y-o-y) was supported by higher electricity sales margin. The operating profit of Retail division's (23 million euros, -43.0% y-o-y) was impacted by higher fixed expenses and lower margins in electricity retail market.

Group´s operating cash flow amounted to 161.8 million euros (-18.3% y-o-y). Main reasons behind the decrease are the adjustments related to the sale of business operations (-18.7 million euros), increase in the inventory levels (-18.1 million euros) and the prepayment for CO2 emissions allowance (-16.7 million euros). In addition positive impact of 14.2 million euros originated from lower corporate income tax payment compared to 2010.

Key performance indicators

Electricity sales amounted to 10.7 TWh, down 0.1% y-o-y, of which electricity sold at regulated prices was 5.5 TWh (-10% compared to 2010).

Sales at non-regulated prices to Baltic unregulated market retail customers amounted to 2.0 TWh in 2011, which is 18% more than a year ago. In Estonia, Eesti Energia's average share in the unregulated electricity market was around 72% in the financial year 2011. In Latvia and Lithuania the market share was around 15 percent and 7 percent, respectively.

In 2011 Eesti Energia sold 3.2 TWh (+0.3 TWh) to Nord Pool Estonia price area and Lithuanian power exchange BaltPool

Total electricity generation in FY 2010 reached 10.4 TWh. Sales of shale oil amounted to 164 thousand tonnes, down 10% year-on-year due to scheduled repairs. Oil shale sales amounted to 2.1 million tonnes, 8 percent decrease y-o-y.

Capital expenditure

In 2011 Eesti Energia invested 508 million euros, up 132% y-o-y.

Total capital expenditure in Retail division amounted to 75 million euros, including 73 million euros to new network connections and improvement of network's reliability.

Eesti Energia invested a total of 218 million euros to Electricity and Heat Generation division including 69 million euros to the new 300-MW CFB power plant, 49 million euros to Narva wind park and 30 million euros to the desulphurisation equipment in Narva power plants.

Fuels division invested 198 million euros, which included 112 million euros to Enefit-280 oil plant and 32 million to renovation and acquisition of new mining equipment. In addition, Eesti Energia acquired for 30 million euros a 100% holding of the oil shale development company in USA including oil shale reserves estimated to contain some 2.6 billion barrels of oil.

Outlook

The Group revenues for 2012 are expected to remain at the same level as in 2011 due to strong oil prices, increasing shale oil production and higher network tariffs.

The Group operating profit for 2012 is also expected to remain approximately at the same level as in FY11. The main factors impacting FY12 operating profit include completion of assets currently under construction, profitable oil sales and increased profitability of distribution network.

In 2012 the total capex is expected to amount to 560 million euros including 220 million euros to the new 300-MW CFB power plant, 90 million euros to renovating the distribution network and 40 million euros to completion of Enefit-280 oil plant.

More information on the audited financial results of Eesti Energia Group is available at Eesti Energia homepage.

Veiko Räim
Head of Investor Relations and Treasury
Eesti Energia AS
Tel: +372 715 2884
Mob: + 372 5668 1568
veiko.raim@energia.ee