Eesti Energia Group's nine-month sales revenue amounted to 1.3 billion euros and normalised net profit to 191 million euros. In the third quarter, the group generated sales revenue of EUR 388 million and a normalised net loss of EUR 5.6 million. The results were impacted by the reduced competitiveness of the oil shale power plants, as well as planned maintenance of production units and seasonality in the energy business.

Eesti Energia’s CFO, Marlen Tamm, highlighted that despite a minor loss in the third quarter, the company's growth in domestic markets has delivered good overall results. "Out of the group's nine-month sales revenue of 1.3 billion euros, nearly two-thirds were generated outside Estonia. Currently, the volume of electricity sold in Latvia, Lithuania, and Poland is already more than double of what is sold in Estonia," Tamm noted. "Our results were negatively affected by the old oil shale power plants, which seldom entered the market, but whose fixed costs exceeded €10 million in the third quarter. Additionally, lower prices in the Baltic and Polish electricity markets, along with the global liquid fuels market, impacted our performance."

New wind and solar farms increase renewable energy production by 20%

In the third quarter, Eesti Energia group produced 689 gigawatt-hours of electricity, which is 21 percent more than last year. Renewable electricity accounted for 53 percent of electricity production, or 362 gigawatt-hours, which was 21 percent more than last year.

"We have reached a point in electricity generation where renewable capacity is approaching our dispatchable capacity. As our dispatchable capacity very rarely enters the market, renewable electricity already accounts for more than half of our total electricity production," explained Tamm. "We will certainly see an increase in the share of renewables in the future, as renewable energy production will continue to increase, and the competitiveness of oil shale power is not expected to improve."

Due to higher electricity prices caused by the Estlink-2 connection failure, the interconnection cable between Estonia and Finland, dispatchable generation capacities had better access to the market and produced 327 gigawatt-hours of electricity—20% more than in the same period last year. " During periods of low renewable energy production, high-cost oil shale power plants remain irreplaceable in the Baltics. Unfortunately, these generation units can only enter the market during extended periods of higher prices and lack the flexibility to respond to short-term price fluctuations."

Investment in renewable energy and the electricity grid

The group’s investments amounted to 164 million euros, 18% less than in the same period last year. Of this amount, 77 million was invested in the development of renewable energy by the group's subsidiary Enefit Green and 34 million in the electricity grid by the grid operator Elektrilevi.

According to Tamm, several pending investment projects aimed at cleaner energy production, electricity grid interconnections, and the development of chemical industry foundations are nearing completion. "All the wind turbines at Enefit Green's Sopi-Tootsi wind farm are installed and the farm also supplied its first electricity to the grid in the third quarter. The pace of solar panel installations has slowed down, reducing the need for grid connection investments. These investments will bring cleaner and competitively priced electricity for the consumer and additional revenue for the group," Tamm explained.

The group’s liquid fuel production volume decreased by 7% to 87 thousand tonnes compared to the previous year due to equipment maintenance. Sales volumes decreased by 18% to 94 thousand tonnes. the same level at 124 thousand tonnes. However, the profitability of the liquid fuels segment improved in both the third quarter and the first nine months.

The group's normalised EBITDA (earnings before interest, taxes, depreciation and amortisation) was 43 million euros in the second quarter, which is 58% lower than in the same period last year. The group’s normalised net loss was 5.6 million euros. The group's nine-month sales revenue amounted to 1.3 billion euros (-7%) and normalised net profit was 191 million euros (-17%).

Eesti Energia’s performance in Q3:

*Normalised result that does not include the revaluation of derivatives

Eesti Energia’s performance, 9 months

*Normalised result that does not include the revaluation of derivatives