Iseteenindus

Eesti Energia Group preliminary results for FY2010

28.01.2011
Consolidated revenues of Eesti Energia for FY 2010 amounted to 796 million euros (+20% y-o-y), operating profit to 151 million euros (+47% y-o-y) and net profit excluding discontinued operations to 119 million euros (+34%)

Key financial indicators

The Group's revenues increased on the back of the opening of electricity market in the Baltics and establishment of Nord Pool Estonia price area. The revenues from electricity sales contributed 66 million euros to revenue growth while network services added 15 million euros and higher shale oil sales 12 million euros to the Group revenue growth.

The Group's EBIT growth was driven by Electricity and Heat Generation division (+31 million euros) and Fuels division (+11 million euros). The Group earned 22 million euros from higher electricity prices and volumes, 18 million euros from market opening and 9 million euros from higher shale oil sales. The Group's EBITDA increased 18% to 245 million euros.

The Group's net profit was further impacted by corporate taxation on record gross dividend payment of 138 million euros. Including discontinued operations the group's net profit amounted to 147 million euros.

Key performance indicators

Electricity sales amounted to 10.7 TWh, up 12.3% y-o-y, of which electricity sold at regulated prices was 6.1 TWh (-14% compared to 2009).

Sales at non-regulated prices to Baltic open market retail customers amounted to 1.8 TWh in 2010, which is 1.4 TWh more than a year ago. In Estonia, Eesti Energia's share in the open electricity market was 87% as at the end of 4Q 2010. In Latvia and Lithuania the market share was around 13 percent at the end of the last quarter 2010.

In 2010 Eesti Energia sold 2.9 TWh (+0.8 TWh) to Nord Pool Estonia price area, Lithuanian power exchange BaltPool and based on the bilateral wholesale agreements.

Total electricity generation in FY 2010 reached 10.6 TWh. Shale oil production exceeded 190,000 tonnes while sales of shale oil increased 17 percent to 181,000 tonnes. Oil shale production amounted to 17 million tonnes, 21 percent increase y-o-y.

Capital expenditure

In 2010 Eesti Energia invested 219 million euros, up 5% y-o-y.

Total capital expenditure in Retail division amounted to 63 million euros, including 60 million euros to new network connections and improvement of network's reliability.

Eesti Energia invested a total of 85 million euros to Electricity and Heat Generation division including desulpurisation equipment in Narva power plants (46 million euros), Iru waste-to-energy plant (10 million euros) and Aulepa windpark (9 million euros).

Fuels division invested 59 million, which included 32 million euros to Enefit-280 oil plant and 23 million to renovation and acquisition of new mining equipment.

The presentation slides will be available on Eesti Energia' website 30 minutes before the call.

We will also provide you a recording and transcription of the call will be made available on the website.

Eesti Energia changed its financial year in 2010. FY2010 run from 1 April 2010 to 31 December 2010 followed by a financial year starting from 1 January 2011 and ending on 31 December 2011. The audited results of FY 2010 covering 2009 and 2010 calendar years will be released on 29 April 2010, when the annual report will be publicly available on the Eesti Energia website.

More information on the preliminary 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