Eesti Energia’s CFO, Marlen Tamm, explained that the group’s sales revenue remained at the same level as the previous year, and the results were influenced by a significant increase in renewable energy production and, on the other hand, a decrease in electricity production from oil shale. ‘Eesti Energia's focus on low-carbon power generation will enable us to offer more competitively priced electricity to the electricity market and at the same time improve the group’s financial performance,’ said Tamm.

The largest share of renewable electricity in history

In the second quarter, the Eesti Energia group produced 756 gigawatt-hours of electricity, which is at the same level as the previous year. Of this, a record 59 percent, or 447 gigawatt-hours, was renewable electricity production. ‘The growth in the share of renewable electricity in electricity production was influenced by both the low competitiveness of oil shale electricity in the market and the addition of production from Enefit Green’s completed and under-construction wind and solar parks. We certainly foresee the share of renewable energy continuing to grow in the future, as we are specifically focusing our investments on increasing renewable energy production,’ explained Tamm.

Due to lower electricity market prices, oil shale power plants were unable to enter the market for much of the time, resulting in a 19 percent decrease in electricity production from fossil sources to 309 gigawatt-hours in the second quarter. Consequently, the group’s CO2 emissions decreased by 184 thousand tonnes (-26%) in the second quarter.

The focus of investments is on renewable energy and the electrical network

The group’s investments amounted to 212 million euros. According to Tamm, the focus remains on completing the ongoing major investments. ‘Enefit Green’s wind and solar parks under construction will help bring more competitive and environmentally sustainable renewable energy to the market in the future. Once the ongoing investments are completed and start generating revenue, we can consider the next significant investments for the energy sector. For example, unmanaged renewable energy also requires storage capacity and dispatchable generation alongside it,’ explained Tamm.

More than half of the group’s investments, 130 million euros, were directed towards Enefit Green’s development investments in wind and solar parks. The second largest part, 35 million euros, was invested in the development of electricity grid to increase the reliability and allow additional solar generation to connect to the grid.

The group’s liquid fuel production volume decreased by 11 percent to 111 thousand tonnes compared to the previous year due to equipment maintenance, but sales volume remained at the same level at 124 thousand tonnes.

The group's normalised EBITDA (earnings before interest, taxes, depreciation and amortisation) was 159 million euros in the second quarter, which is 37 percent higher than in the same period last year. The group’s normalised net profit was 109 million euros, which is 114 percent higher than last year. The results were positively influenced by increased revenue from renewable energy production and improved liquid fuel sales performance, while the profitability was negatively impacted by a decline in the profitability of oil shale electricity. The group's first-half sales revenue amounted to 915 million euros (-8%) and normalised net profit was 197 million euros (+2%).

In the second quarter of 2024, Eesti Energia contributed a total of 22 million euros in taxes and environmental charges. Additionally, the cost of CO2 emissions in the second quarter was €37 million at market price.

Eesti Energia’s performance in Q2:

*Normalised result that does not include the revaluation of derivatives

Eesti Energia 2024 first half-year results

*Normalised result that does not include the revaluation of derivatives