Iseteenindus

Eesti Energia Group unaudited results for Q2 2012

27.07.2012
Consolidated revenues of Eesti Energia for Q2 2012 amounted to 177 million euros (-14% y-o-y), operating profit to 42 million euros (+13% y-o-y) and net profit to 25 million euros (+16% y-o-y)

Key financial indicators

In Q2 the Group's revenues increased due to improved sales of network services due to higher network tariffs (+9.8 million euros). Lower sales of electricity (-8.7 million euros) and liquid fuels (-3.5 million euros) had negative impact on the Group's revenues. The revenues were further impacted by lower other revenues (-24.3 million euros).

The Group's EBITDA amounted to 69.7 million euros (+14.9% y-o-y), while operating profit increased 13.4% to 42.3 million euros in Q2 2012.

The Group's operating profit was positively impacted by higher margin on network services (+8.4 million euros) and higher profitability of electricity sales (+6.8 million euros). Decline in the non-recurring revenues (-7.5 million euros), higher depreciation (-4.0 million euros) and lower volume and profitability of oil sales (-3.4 million euros) decreased the Group's profitability.

Group´s operating cash flow amounted to 47.0 million euros (+81.7% y-o-y). Main reasons behind the increase are the decrease in the trade receivables (+7.6 million euros) and increase of trade payables (+6.7 million euros). While EBITDA change (+9.0 million euros) had a positive impact, the impact on operating cash flow was reduced by higher non-monetary component of EBITDA (-7.2 million euros).

Key performance indicators

Electricity sales amounted to 2.1 TWh, down 12.9% y-o-y. Sales of electricity at regulated prices amounted to 1.2 TWh (+2.3% compared to Q2 2011).

Sales at non-regulated prices to Baltic retail customers amounted to 0.6 TWh in Q2 2012, which is 17.2% more than a year ago. In Estonia, Eesti Energia's average share in the unregulated retail electricity market was around 68% in Q2 2012. In Latvia and Lithuania the market share was around 20 percent and 7 percent, respectively. In Baltic unregulated retail market Eesti Energia holds 24%.

Total sales at non-regulated prices amounted to 0.9 TWh, down by 27.2% from 1.3 TWh a year ago due to lower production volume arising from unfavourable market prices.

Total electricity generation in Q2 2012 was 2.0 TWh (-11.5% y-o-y). Sales of shale oil amounted to 34 thousand tonnes, down 19.5% year-on-year. Oil shale sales amounted to 0.3 million tonnes, 45.1 percent decrease y-o-y.

Capital expenditure

In Q2 2012 Eesti Energia invested 95.4 million euros, down 28% y-o-y.

Total capital expenditure in Distribution Network amounted to 23 million euros in new network connections and improvement of network's reliability.

Eesti Energia invested a total of 42 million euros in the Electricity and Heat Generation division including 18 million euros in our Paldiski windpark, 14 million euros in a new 300 MW CFB power plant, 6 million euros in the desulphurisation equipment in Narva power plants and 5 million euros in Iru waste-to-energy plant.

Fuels division invested 23 million euros, which included 14 million euros in Enefit280 oil plant and 4 million euros in renovation and acquisition of new mining equipment.

Outlook

Eesti Energia estimates that the Group's revenues will remain relatively unchanged in 2012 compared to 2011 results. Since Q1 2012 this outlook has been revised lower due to lower forecasted electricity prices and generation volumes.

Eesti Energia estimates that the Group´s profitability will increase in 2012 compared to 2011 results. Since Q1 2012 this outlook has been revised higher due to impact of lower opex including lower CO2 costs.

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
Mobile + 372 5668 1568
veiko.raim@energia.ee