Eesti Energia's second-quarter sales down

Eesti Energia's economic results in the second quarter show that generation and sale of power and heat as well as production and sales of liquid fuels are down compared to the same period in 2011. The company's turnover dropped 14%, to 177 million euros. Eesti Energia earned 24.6 million euros in net profit (+16%) thanks to allocation of free carbon credits and the improved profitability of network service of Elektrilevi, which is owned by the Eesti Energia Group.

Sales of electricity to private consumers made up 6.4% of Eesti Energia's Q2 turnover, while no profits from sale of electricity to residential customers were earned in the second quarter.

The Group's six-month turnover was 413 million euros, which is close to 7 percent less than in the first half-year of 2011. Operating profit grew by 17 million euros to 98.8 million euros; net profit increased to 80.7 million euros.

Eesti Energia Chief Financial Officer Margus Kaasik said there is plenty of reason for good cheer despite the lower production and sales volumes. "The company's economic results show a positive trend. For instance, we have significantly grown the number of corporate customers in a competitive situation on the Latvian and Lithuanian market. The company's renewable energy generation volume has also grown, showing that the major investments into diversifying the production portfolio have been reasonable ones," said Kaasik.

Eesti Energia invested 95.4 million euros in Q2, which is nearly 30% percent more than in the second quarter of last year. Comparing half-year periods, investments were down 1.6 percent. The change stemmed from the fact that several key investment projects reached the end phase. The investments were primarily directed at Paldiski wind farm, construction of Auvere power plant, the Enefit technology-based oil plant and the Iru WTE unit. The most important investments by Elektrilevi were related to improving the quality of the power grid. The entirety of the profit earned by Elektrilevi is channelled each year into financing investments into the power grid.

To finance the investments, the state, as the owner of the Eesti Energia, decided to increase the company's equity by 150 million euros.

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]