Eesti Energia's financial results reflect departure from operating as a monopoly

Eesti Energia's turnover in 2011 was 858 million euros, of which sale of electricity to residential customers made up 53.7 million euros (6.3 per cent). Operating profit in the last year was in 2011 was 168 million euros, of which sale of electricity to residential customers contributed 0.2 million euros (0.1 per cent).

The 7.7 per cent growth in turnover was supported the most by sales to the open market – sales to large corporations and the power exchange. The 12.8 per cent growth in profit stemmed primarily from sale of shale oil. Over half – 63 per cent – of the 168 million euros in operating profit was earned on markets open to competition. This was 40 per cent more than the year before.

According to chairman of the Eesti Energia management board Sandor Liive, Eesti Energia's monopoly era also ended last year, as over half of the company's turnover came from markets open to competition.

"Only domestic retail market customers still lack the freedom to choose one's seller of electricity, but this situation, too, will resolve in ten months already," he said. Yet Liive said Eesti Energia already operates so that money flows into the company from major lines of business and Estonians would derive the most benefit from this through better service and better reliability of supply.

"Ultimately, every Estonian as the actual owner of the company gets a share of the success of Eesti Energia. Eesti Energia is not my company or some politician's company, Eesti Energia belongs to every Estonian, that should not be forgotten," emphasized Liive.

Eesti Energia's CEO said investments, which grew two and a half times last year, should be highlighted as well. "While Eesti Energia has invested an average of 100-200 million euros a year in the last ten years, the figure was 508 million euros last year," said Liive. "One should keep in mind that 94 per cent of this amount was invested into Estonia," he said. "If we look at the investments in the last ten years, 98 per cent of them were made into Estonia. The international projects touted in the media are actually marginal in the big picture."

The largest investments in 2011 were the following: 73 million euros into upgrading the distribution network; 49 million euros into the construction of Narva wind farm; 70 million euros into the construction of the new Narva oil shale power plant, which can be up to 50 per cent fired by biomass; 30 million euros into the installation of desulphurization equipment at the existing Narva power plants. The investment of 112 million euros into developing domestic liquid fuels is also noteworthy, the result of which is a new oil refinery to be completed this year.

Primary sales indicators
Sales of electricity amounted to 10.7 TWh, which is 0.1% less than in 2010.
Network services sales volume was 6.2 TWh, which is 2.2% less than in 2010.
Sales of thermal energy amounted to 1073 GWh, which is 25% less than in 2010 (1428 GWh).
Sales of oil shale outside the group were 2.1 million tonnes, close to 8 per cent more than in 2010 (2.0 tonnes).
Sales of liquid fuels were 164 thousand tonnes, which is 10% less than in 2010 (181 thousand tonnes).

Eesti Energia Group's financial results represent the consolidated results of its subsidiaries, which are engaged in generation, distribution and sale of heat and power as well as in providing other services.

Eliis Vennik
Eesti Energia
Press representative
715 12 18
57 830 756
[email protected]